- First Abu Dhabi Bank (FAB), the UAE's largest lender, reported a robust Q4 2023 net profit of AED 4 billion ($1.09 million), marking a significant 63% YoY increase. The bank's full-year 2023 net profit reached AED 16.4 billion, reflecting a noteworthy 22% YoY growth, or a substantial 56% increase on an underlying basis when excluding gains from subsidiary stake sales. These results surpassed analysts' mean estimates for both the quarter and the full year, indicating strong performance.
- In Q4, FAB's net interest income rose to AED 4.7 billion, a 12% YoY increase, driven by higher benchmark rates. The net interest margin (NIM) for the quarter stood at 1.89%. Impairment charges for the quarter increased by 10%, primarily due to the downgrade of Egypt's credit rating. Despite this, Lars Kramer, FAB Group CFO, emphasized the strength of the results, highlighting the bank's new record highs in group revenue and net profit, consistent performance across core business segments, and a positive outlook for 2024 and beyond.
Why it matters
The board of FAB has recommended a dividend payout of AED 7.8 billion, constituting 50% of the net profit. This is deemed the "highest cash dividend payout since 2020," reflecting the bank's commitment to shareholder returns and financial stability.
