FAB’s Group Revenue Reach $6.51 Billion in 9M-2024

First Abu Dhabi Bank (FAB), one of the largest banks in the UAE as well as in the GCC region, on Friday said that its Group revenue stood at $6.51 billion while the net profit increased by 4% to $3.51 billion in the first nine months of 2024.

The bank’s total assets grew to $330 billion highlights the key role FAB plays, as the region’s international financial powerhouse, in supporting the ambitions of our clients as they invest for the future. The bank’s further progress in facilitating sustainable and transition financing projects, with the total now standing at $58.81 billion, or 43% of its target of $136.13 billion by 2030.

The Profit Before Tax was up 15% y-o-y to $4.17 billion and the net profit for the third quarter of 2024 reached $1.23 billion, up 5% y-o-y, FAB said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) in the morning.

The bank’s operating income was $6.51 billion, an increase of 16% y-o-y with strong growth in both net interest and noninterest income, reflecting broad-based growth across all divisions. In the third quarter, operating income rose 18% y-o-y to $2.23 billion.

The Net Interest Income (NII) was $4 billion, up 9% y-o-y, supported by solid business volumes and a 17bps y-o-y improvement in Net Interest Margin (NIM) to 1.93%. In Q3-2024, NIM was 7bps lower sequentially as disciplined pricing was offset by the impact of higher cash reserve requirements, increased central bank placements, and the 50bps benchmark rate cut over the period.

The non-interest Income grew 30% y-o-y $2.5 billion, reflecting continued strength in fee-generation from various products, solid sales and trading performances in the global mMarkets, and a gain on the completion of the Network International transaction in the third quarter.

Non-interest income now represents 39% of the Group revenue in the first nine months of 2024, compared with 35% in the corresponding period last year. The non-interest income rose 38% y-o-y to $900 million between January and September this year, FAB said.

The operating expenses were $1.58 billion, up 11% y-o-y, with ongoing investments in talent, technology and AI-related initiatives. Group Cost-to-Income ratio was 24.3%, improving from 25.4% in the prior comparative period.

The net impairment charges were $760 million, up 36% y-o-y supporting strong provisioning levels. In the third quarter of 2024, the net impairment charges were $247.48 million, up 50% y-o-y, the bank said.

Creating Value for Investors

FAB Group CEO Hana Al Rostamani said that the bank’s third consecutive quarter of net profit growth, with earnings underpinned by robust y-o-y revenue expansion, clearly showed that their client-centric approach to strategy execution created value for investors.

FAB’s commitment to enhancing customer engagement and broadening relationships, across wholesale banking and personal banking & wealth management segments, has driven momentum in the Group’s performance in the first nine months of the year, resulting in a double-digit growth both locally and across FAB’s international franchise, she said.

FAB Group CEO Lars Kramer said that strong business momentum supported by robust economic conditions reflected in the bank’s volume growth, rising revenues and diversified income streams, as FAB continued to leverage its diversified franchise to deepen client relationships.

“Our international franchise, in particular, has played an important role in delivering diversified sources of growth. The international revenue growth of 33% year-on-year now sees this segment represent 22% of Group revenue,” he added.