Khaleej Times, Saturday, Jan 28, 2023 | Rajab 6, 1444
FAB posts ‘historic-high’ profit of Dh13.4 billion in 2022
First Abu Dhabi Bank (FAB) reported on Thursday record annual profitability of
Dh13.4 billion, up seven per cent year-on-year for 2022.
The “historic-high profit” for FAB was driven by strong underlying business
performance in a rising rate environment, prudent risk management, and cost
discipline maintained amid continued investments, the largest UAE lender said in
The bank’s fourth-quarter net profit dropped to Dh2.5 billion from Dh 2.9
million in Q3’22, reflecting prudent provisioning and conservative asset
valuations. Earnings per share was Dh1.18. The bank's board of directors has
recommended cash dividends per share of 52 fils amounting to Dh5.7 Billion for
FY’22, compared to 49 fils cash dividends distributed in the prior year.
“Double-digit balance sheet growth reflects strong business momentum; Group
foundation remains robust across all key metrics,” said FAB,
Total income grew 10 per cent to Dh 23.9 billion, driven by 23 per cent growth
in net interest income and gain on sale of a majority stake in Magnati; enhanced
revenue diversification geographically with greater contribution from Mena, FAB
Impairment charges (net) rose 7.0 per cent to Dh2.8 billion, reflecting prudent
provisioning with Dh1.1 billion charge taken in Q4’22. Operating costs rose 15
per cent to Dh 6.7 billion “driven by the integration of operations in Egypt
(FABMisr), write-off of legacy systems in Q4’22 as part of our ongoing
technology transformation strategy, as well as continued investments into the
business,” FAB said.
Customer deposits rose 14 per cent to Dh701 billion and despite rising interest
rates, CASA balances grew 3.0 per cent YoY. Loans, advances and Islamic
financing surged 12 per cent to Dh460 billion, outperforming the industry
average of 5.5 per cent, the bank said.
Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of FAB, said 2022 was a year of
continued strategic diversification and expansion for the UAE and regional
economies, which posted their fastest economic growth in a decade. “By
capitalising on the favourable macroeconomic conditions, FAB has been laying
foundations for the future.”
“I remain confident that FAB will continue to play an integral role in
furthering economic prosperity and sustainability efforts,” said Sheikh Tahnoon.
Hana Al Rostamani, group chief executive officer, FAB, said profit growth of 7.0
per cent year-on-year to Dh13.4 billion is a historic high for the bank. FAB has
achieved another record performance in 2022, highlighting solid growth, while
demonstrating the strength of its core businesses, with achievements that are in
line with the bank’s medium-term strategy.
“Strong business volumes have underlined healthy pipeline execution across our
diversified business model, while the fundamental strength of our balance sheet,
underpinned by a strong liquidity profile and efficient capital management,
allowed us to drive improvements in Common Equity Tier 1 (CET1) despite market
and regulatory headwinds.”
The bank said it anticipates a relatively benign inflation outlook in 2023
compared to many parts of the world, which should provide welcome stability
against the macroeconomic backdrop.
“However, the region will not be immune to global price pressures and economic
slowdown. Hence, we forecast a more modest real GDP growth rate of around 5.0
per cent for UAE in FY’23, although that growth should be more sustainable as
economic diversification continues to evolve.”