Abu Dhabi's FAB 9-month net profit at Dh12.89b, as overseas operations also lend weight

FAB sees sharp gains in net interest income, as well from its non-UAE operations

Dubai: The 9-month net profit for Abu Dhabi mega-bank FAB totals Dh12.89 billion, a solid push up from Dh12.41 billion. The gains were helped by net interest income clearing Dh13 billion, while net fee and commission income also put in a strong showing, clearing Dh2.89 billion.

What's also impressive is that FAB's overseas operations helped with a 33% revenue growth. (To the 9-month revenues, the overseas contributions made up a robust 22%.)

The UAE operations saw 12% growth on the revenue side. 

“FAB’s third consecutive quarter of net profit growth, with earnings underpinned by robust year-on-year revenue expansion, shows clearly that our client-centric approach to strategy execution creates value for investors," said Hana Al Rostamani, Group CEO.

Total assets as of end September were Dh1.2 trillion, the highest tally for a UAE bank.

The growth in our total assets to AED 1.2 trillion highlights the key role FAB play.- Hana Al Rostamani, Group CEO

When it comes to the July to September phase, net profit was Dh4.46 billion from Dh4.26 billion a year ago.

Dh 167 billion

Size of FAB's loan book as of end Sept. 2024

"Our international franchise, in particular, has played an important role in delivering diversified sources of growth," said Lars Kramer, Group CFO. "Strong business momentum supported by robust economic conditions were reflected in volume growth, rising revenues and diversified income streams, as we continue to leverage our diversified franchise to deepen client relationships."

The mention of business momentum will be a theme the bank - and the UAE banking sector - will look to maintain through the rest of the year and into 2025.

Impairment charges and NPL

FAB's 9-month 2024 net impairment charges were higher, by 36%, to Dh2.8 billion, and 'supporting strong provisioning levels'. That for the Q3-24 period alone came to Dh909 million, up 50%.

The non-performing loans were at Dh20.4 billion, with a gross NPL ratio of 3.8%, an improvement on the 3.9% a year ago. 

Revenue split

The investment banking operations grew 22% year-on-year and 'strong sales and trading activity in global markets' saw a revenue uptick by 22%. And demand for corporate and commercial banking in the UAE and overseas saw the loan book increase to Dh167 billion and deposits to Dh152 billion.

"Our credit profile remains solid with our AA- rating recently reaffirmed by Fitch Ratings, while our strong asset quality and balance-sheet fundamentals position us well to navigate an ever-evolving environment," said Kramer.

And that means still being able to leverage growth as the interest rate environment gears up for more cuts.