Thursday July 28, 2022
FAB reports net profit of Dhs8 billion in H1
FAB Groupâ€™s net profit in H1 increases 50% compared to the same period last year.
First Abu Dhabi Bank (FAB) on Thursday announced that the Groupâ€™s net profit amounted to Dhs8 billion in the first six months of 2022, an increase of 50 per cent compared to the same period last year.
In a statement on Thursday, the bank said that the total income was Dhs12.5 billion, up 31 per cent year-on-year (YoY), including an Dhs3.1 billion net gain on the sale of a majority stake in Magnati.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said, â€œFAB delivered a strong performance in the first six months of 2022 with a 50 per cent increase in net profit compared to the same period in 2021. Despite heightened global market volatility, our core businesses maintained solid growth momentum reflecting healthy pipeline execution across our diversified franchise and our ongoing strategic focus on deepening client relationships.â€
â€œAlmost Dhs50 billion net incremental lending was extended by FAB year-to-date (ytd), a record for the Group for any half-year period. This demonstrates buoyant regional activity, FABâ€™s leading origination capabilities, and the fundamental strength of our balance sheet as we continued to deploy our resources and expertise to support our client franchise with their local and cross-border banking needs.â€
James Burdett, FABâ€™s Group Chief Financial Officer, stated, â€œFAB produced another solid set of results in the second quarter with a net profit of Dhs2.9 billion, up 13 per cent sequentially on an underlying basis, bringing first half 2022 profit to Dhs8.0 billion. The annualised return on tangible equity for the first half of 2022 improved to 19.5 per cent from 13.6 per cent in H1 of 2021.
â€œIn the last quarter, all our core businesses delivered top-line growth sequentially, led by a double-digit growth in Investment Banking and Corporate and Commercial Banking, which is a strong result in adverse global market conditions. This was helped by strong volumes, early benefits from rising interest rates, and healthy client activity in Global Markets consistent with our strategy to enhance cross-sell.