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First Abu Dhabi Bank (FAB) said the group posted a net profit of AED8 billion ($2.18 billion) in the first six months (first half) of 2022, a 50% increase compared to the same period last year.
According to the Emirates News Agency, the bank’s total revenue was AED12.5 billion, up 31% year-on-year, including a net gain of AED3.1 billion from the sale of a majority stake in Magnati WAMciting the FAB statement.
Hana Al Rostamani, Chief Executive Officer of FAB Group, said: “FAB has performed strongly in the first six months of 2022, with a 50% increase in net profit compared to the same period in 2021. Despite heightened global market volatility, our core business maintained solid growth momentum, reflecting healthy pipeline execution of our diverse franchises and our continued strategic focus on deepening customer relationships.”
“FAB added almost AED50 billion in net incremental lending year-to-date (ytd), a record for the group in any half-year period. This is indicative of active regional activity, FAB’s leading origination capabilities and the underlying fundamentals of our balances. Strength We continue to deploy our resources and expertise to support our client franchises and meet their local and cross-border banking needs.”
James Burdett, Group Chief Financial Officer of FAB, said: “FAB delivered another solid set of results in the second quarter, with a net profit of AED2.9 billion, up 13% sequentially, bringing the first half of 2022 profit to AED8. .0 billion. Annualized return on tangible assets in 1H22 increased to 19.5% from 13.6% in 1H21.
“During the last quarter, all of our core businesses delivered quarter-on-quarter revenue growth, with double-digit growth in Investment Banking and Corporate and Commercial Banking, a strong result against unfavourable global market conditions . This was driven by strong transaction volumes, early gains from higher interest rates, and healthy customer activity in global markets consistent with our enhanced cross-selling strategy. Risks are managed prudently across the group, while the year-on-year increase in operating expenses reflects the Continued investment in franchise growth and transformation.”
According to the bank’s statement, impairment charges (net) amounted to AED1 billion, down 9% from the previous year. However, the annualized cost of risk reached 47 basis points.
Operating costs reached AED 3.1 billion, excluding Audi Egypt Bank, up 8% year-on-year, reflecting continued investments to drive growth and transformation.
Loans, advances and Islamic financing totalled AED459 billion, up 6% sequentially and 12% year-to-date. Customer deposits reached AED648 billion, up 8% month-on-month and 5% YTD, while CASA balances stood at AED291 billion, up 15% compared to 2021.
The Liquidity Coverage Ratio (LCR) reached 135%, underscoring the strong liquidity position; however, the healthy asset quality indicators of the non-performing asset ratio and provision coverage ratio reached 3.6% and 100%, respectively.
Tier 1 common stock (CET1) was 12.6%, well above regulatory requirements.
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