First Abu Dhabi Bank Sails into Strong Start for 2024 with AED 4.2 Billion Net Profit

First Abu Dhabi Bank (FAB), the United Arab Emirates' largest lender, reported a robust financial performance for the first quarter of 2024. The bank's net profit reached AED 4.2 billion, marking a 6% increase year-on-year. This positive outcome surpassed analyst expectations, with an initial projection of AED 3.59 billion.

FAB's performance was driven by a significant surge in revenue, which climbed 18% year-on-year to AED 8.0 billion. This growth stemmed from a combination of factors, including core operational advancements, strategic balance sheet expansion, a rise in Net Interest Margin (NIM), and a healthy contribution from non-funded income (NFI). The double-digit growth in revenue effectively counterbalanced the impact of the recently introduced UAE corporate tax.

Hana Al Rostamani, Group Chief Executive Officer at FAB, expressed optimism about the bank's continued success. "In 2024, we're building on the strengths that fueled our exceptional performance in 2023," she remarked. "This translates to growth in both profits and revenues, supported by operational efficiencies and financial resilience."

A closer look at FAB's revenue breakdown reveals impressive growth across various business segments. Global Markets revenue witnessed a surge of 29%, reaching AED 1.9 billion. Consumer banking thrived as well, with a 37% year-on-year increase to AED 1.1 billion. Growth momentum was also evident in global private banking, where revenue climbed 12% to AED 308 million. Notably, both local and international operations contributed significantly to the bank's overall success. Local operations witnessed a revenue increase of 14% to AED 5.9 billion, while international operations experienced a substantial growth of 33%, reaching AED 2 billion.

FAB's financial health is further bolstered by its asset base, which now surpasses AED 1.2 trillion. This robust figure signifies the bank's ability to support future growth initiatives and navigate potential economic challenges.

The bank's positive financial performance is a welcome sign for investors and the UAE's financial sector as a whole. FAB's commitment to operational excellence and strategic expansion positions it well to capitalize on upcoming opportunities and maintain its position as a leading financial institution in the region.

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