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Arabian Business
29-04-2025
- Business
- Arabian Business
First Abu Dhabi Bank powers ahead with record Q1 numbers
First Abu Dhabi Bank (FAB), the largest bank in the UAE, delivered record results for the first quarter of 2025. Net profit shot up 23 per cent year-on-year (YoY) to AED5.13 billion (US$1.4 billion), and profit before tax reached AED6.13 billion (US$1.67 billion), up 22 per cent compared to the same quarter last year. Group revenue was up 11 per cent at AED8.81 billion (US$2.4 billion), with double-digit growth in all segments and supported by 22 per cent growth in non-interest income (NII). Strong Q1 for First Abu Dhabi Bank The bank's diversification strategy was reflected by NII contributing 43 per cent to the group revenue. Loans and deposits grew 8 per cent and 4 per cent YoY, respectively, with total assets growing 6 per cent and crossing AED1.3 trillion for the first time. Net Interest Margin grew 4 bps quarter-on-quarter (QoQ) to 1.97 per cent. The cost-to-income ratio improved to 22.3 per cent, from 24.0 per cent in Q1'24. Return on Tangible Equity (RoTE) improved from 17.4 per cent in Q1 2024 to 20.4 per cent, which is in line with the bank's medium-term target of greater than 16 per cent. Hana Al Rostamani, Group Chief Executive Officer of First Abu Dhabi Bank, praised the bank's performance and said it is well-positioned to sustain its momentum, expand its scale, and continue delivering long-term value to shareholders and stakeholders. Al Rostamani commented: 'FAB delivered a strong performance in the first quarter of 2025, achieving an operating income of AED8.81 billion and a net profit of AED5.13 billion for the group, supported by sustained growth momentum across our business segments and our international franchise. 'We continue to execute on our strategic priorities capitalising on the growth of the UAE economy and across the international footprint. 'Our return on tangible equity increased to 20.4 per cent and remains consistently focused on value creation across the cycle. The bank remains well-capitalised, with a strong liquidity and asset quality supporting our long-term resilience. 'We will continue to leverage our strengths to drive innovation and customer experience and remain focused on delivering value to our clients and strong, sustainable returns to our shareholders.' Among First Abu Dhabi Bank's businesses, most divisions notched double-digit growth. Investment Banking & Markets revenue grew 15 per cent YoY and 22 per cent QoQ. Equity Capital Markets and Debt Capital Markets franchises helped clients raise US$29 billion in Q1'25, up 56 per cent YoY. Wholesale Banking revenue grew 12 per cent YoY on the back of strong activity and business momentum across client franchise. Loans and deposits were up 13 per cent and 18 per cent YoY. Personal, Business, Wealth and Privileged Client Banking Group revenue was up 11 per cent YoY and 7 per cent QoQ, driven by strong retail momentum, customer acquisitions, and enhanced customer experience. The international franchise saw significant balance sheet growth, with loans and deposits up 19 per cent and 13 per cent YoY respectively. Lars Kramer, Group Chief Financial Officer of First Abu Dhabi Bank, added: 'In the first quarter of 2025, FAB delivered very strong financial performance and returns, with operating income growing 11 per cent to AED8.81 billion, largely offsetting the impact of the increase in UAE corporate tax during the period. 'Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products, all contributed to this strong set of results. 'With the strongest combined credit rating among any other bank in MENA (of AA- or equivalent), FAB continues to operate from a relative position of strength.' Customer deposits grew 4 per cent YoY and 7 per cent year to date to AED839 billion (AED228.45 billion) from sizeable inflows across both wholesale and retail. Current Account Savings Account (CASA) balances grew 10 per cent YoY, reaching AED376 billion (US$102.4 billion), or 45 per cent of total group deposits.
Hi Dubai
29-04-2025
- Business
- Hi Dubai
First Abu Dhabi Bank Posts AED5.13 Billion Profit as Quarterly Earnings Surge 23%
First Abu Dhabi Bank (FAB) reported a record-breaking AED5.13 billion net profit for the first quarter of 2025, marking a 23% year-on-year surge and reinforcing its position as the UAE's leading banking institution. The Group's profit before tax climbed 22% to AED6.13 billion, driven by strong client activity and diversified income streams. Group revenue rose 11% to AED8.81 billion, with non-interest income accounting for 43%—a reflection of FAB's focused diversification strategy. Loans and deposits grew 8% and 4% year-on-year, respectively, while total assets crossed the AED1.3 trillion mark for the first time, up 6% from Q1 2024. The bank's net interest margin rose slightly to 1.97%, and the cost-to-income ratio improved to 22.3%, down from 24.0% a year earlier. Return on Tangible Equity reached 20.4%, exceeding the bank's medium-term target of 16%, underscoring its commitment to consistent value creation. Group CEO Hana Al Rostamani highlighted continued growth across FAB's business lines, including Investment Banking, Wholesale, and Retail segments, along with solid performance from its international operations. The Investment Banking and Markets division posted a 15% year-on-year revenue increase, while Wholesale Banking revenue rose 12%, supported by higher loan and deposit volumes. FAB also reported notable advances in technology integration, including AI-driven enhancements in customer service and internal operations. Al Rostamani revealed that the bank introduced an AI agent into its boardroom for the first meeting of 2025. With a robust balance sheet, strong liquidity, and growing international footprint, FAB remains well-positioned for long-term growth amid ongoing digital transformation and economic expansion in the UAE. News Source: Emirates News Agency
Trade Arabia
29-04-2025
- Business
- Trade Arabia
FAB delivers record Q1 results; 23% rise in net profit
First Abu Dhabi Bank (FAB) delivered record results for the first quarter of 2025, with group net profit of AED5.13 billion ($1.4 billion), up 23% year on year, and group profit before tax reaching AED6.13 billion, up 22% year on year. This outstanding financial performance reflects FAB's solid business momentum and strong client activity across diversified income streams, with FAB well positioned to deliver sustained shareholder value. Group revenue increased to AED8.81 billion, an 11% rise compared to Q1'24, with double digit growth in all segments and supported by 22% growth in non-interest income, which contributed 43% to Group revenue, underscoring the bank's diversification strategy. Loans and deposits grew 8% and 4% respectively yoy, with total assets growing 6% yoy crossing the AED1.3 trillion milestone for the first time. Net Interest Margin grew 4 bps qoq to 1.97%. Cost-to-income ratio improved to 22.3%, from 24.0% in Q1' 24. Return on Tangible Equity (RoTE) stood at 20.4%, up from 17.4% in Q1'24, and in line with FAB's medium-term target of greater than 16%. The bank maintains robust balance sheet fundamentals underpinned by an AA- credit rating. FAB's Q1'25 performance reinforces its position as the region's leading banking powerhouse and a key engine of the UAE's economic growth and prosperity. The bank is well-positioned to sustain its momentum, expand its scale, and continue delivering long-term value to shareholders and stakeholders. Hana Al Rostamani, Group Chief Executive Officer of FAB, said: 'FAB delivered a strong performance in the first quarter of 2025, achieving an operating income of AED8.81 billion and a net profit of AED5.13 billion for the group, up 23% year on year, supported by sustained growth momentum across our business segments and our international franchise. "We continue to execute on our strategic priorities capitalizing on the growth of the UAE economy and across the international footprint. We expanded our business in Investment Banking & Markets, in Wholesale Banking, in Personal, Business, Wealth and Priviliged Client Banking, as well as in our international branches. FAB maintains its leading position as the UAE's global bank with a robust balance sheet and total assets now over AED1.3 trillion. "Our return on tangible equity increased to 20.4% and remains consistently focused on value creation across the cycle. The bank remains well-capitalized, with a strong liquidity and asset quality supporting our long-term resilience. "We continue to leverage innovation and AI technology to enhance productivity, predictive analysis and customer experience and service. In the first quarter of this year, we have taken further steps to embed AI in our board engagement, by introducing an AI agent to our first board meeting of the year. "FAB's Q1 2025 performance positions the bank for sustainable growth. As we look to the future, we will continue to leverage our strengths to drive innovation and customer experience and remain focused on delivering consistent value to our clients and strong, sustainable returns to our shareholders,' Al Rostamani said. Lars Kramer, Group Chief Financial Officer of FAB, added: 'In the first quarter of 2025, FAB delivered very strong financial performance and returns, with operating income growing 11% to AED 8.81 billion, largely offsetting the impact of the increase in UAE corporate tax during the period. "Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products, all contributed to this strong set of results. Notably, our performance reflects strong client engagement across segments, disciplined strategy execution, as well as ongoing operating efficiencies and a prudent approach to risk. "With the strongest combined credit rating among any other bank in MENA (of AA- or equivalent), FAB continues to operate from a relative position of strength. This is supported by a robust capital base, ample liquidity, high-quality portfolios, and a diversified business model – all of which reinforce our resilient profile amid evolving market dynamics and heightened uncertainties,' Kramer said. Key Q1'25 Highlights • Investment Banking & Markets delivered a strong performance, with revenue growing 15% yoy and 22% qoq. ECM and DCM franchises helped clients raise USD 29 billion in Q1'25, up 56% yoy. • Wholesale Banking revenue grew 12% yoy underlining strong activity and business momentum across our client franchise, with loans and deposits up 13% and 18% yoy, respectively. • Personal, Business, Wealth and Privileged Client Banking Group revenue was up 11% yoy and 7% qoq, driven by strong retail momentum, customer acquisitions, and enhanced customer experience leveraging advanced technology and AI. FAB's wealth and private banking franchise continued to expand, with assets under management growing 57% yoy. • The international franchise saw significant balance sheet growth, with loans and deposits up 19% and 13% yoy respectively from broad-based geographies. • FAB continued to leverage technology to enhance customer experience and drive efficiencies through rapid deployment of AI and accelerated digital transformation, improving Net Promoter Score and increasing digital engagement, including mobile wallet Payit crossing the 1 million- customer milestone. • Customer deposits grew 4% yoy and 7% ytd to AED 839 billion from sizeable inflows across both wholesale and retail, reflecting diversified sources of liquidity. CASA balances grew 5% ytd and 10% yoy, reaching AED 376 billion representing 45% of group deposits. • FAB raised AED5.3 billion of senior wholesale funding at a competitive pricing. Key landmark transactions included a USD 600 million 5-year Sukuk priced at the tightest spread ever achieved by a MENA bank in public format; and a 5-year USD 750 million Formosa FRN bond at the lowest ever pricing achieved by a MENA bank in the Formosa market. • Sustainable and transition financing rose to AED284 billion, or 57% of the group's 2030 target of AED500 billion by 2030. FAB issued the first nature report aligned with the Taskforce on Nature-Related Financial Disclosures (TNFD) framework by any MENA bank and continues to have the leading ESG ratings in MENA with the Best Refinitiv ESG Score (top 6% worldwide) and the best MSCI ESG Rating (AA). -
Trade Arabia
22-04-2025
- Business
- Trade Arabia
Adnoc's listed firms distribute $6.7bn dividends in 2024
Adnoc Group's publicly traded portfolio companies collectively endorsed over $6.7 billion (AED24.6 billion) in annual dividend payments to shareholders for 2024, reflecting their strong financial health and commitment to shareholders value. At the Annual General Meetings (AGM) of all six listed companies, shareholders voted overwhelmingly to approve the dividend proposals brought forth by each companies' Boards of Directors. Each of the six listed companies prioritise strong returns and value creation for shareholders, while advancing their strategies to deliver profitable growth, said a Wam news agency report. Adnoc Distribution At its AGM on March 26, Adnoc Distribution shareholders approved a final cash dividend of $350 million (AED1.3 billion) for the second half of 2024, bringing total annual dividends to $700 million (AED2.6 billion), equal to 20.57 fils per share. Since its IPO in 2017, Adnoc Distribution has paid out $4.8 billion (AED17.6 billion) in dividends and delivered a 92% total shareholder return as of the end of 2024. The company is planning capital expenditures of $250-300 million (AED917.5 million-1.1 billion) in 2025 while maintaining its dividend policy to distribute to shareholders at least $700 million (AED2.6 billion) or 75% of net profit, whichever is higher. Adnoc Gas Adnoc Gas shareholders approved the companies' proposal to distribute $1.7 billion (AED6.2 billion) for the second half of the year, raising the 2024 annual dividend to $3.41 billion (AED12.5 billion), the largest distribution by any issuer on the Abu Dhabi Securities Exchange (ADX). The dividend payout and the company's strong 2024 results, which include record adjusted net income of $5 billion (AED18.35 billion), propelled it to deliver 19% total shareholder returns for the year. Adnoc Gas is also positioned for potential inclusion in the MSCI and FTSE indices later this year following the company's landmark secondary share offering of 3.1 billion shares—the largest of its kind in ADX history and the UAE's largest secondary offering. Adnoc Drilling Shareholders of Adnoc Drilling approved the proposed 2024 annual dividend distribution of $788 million (AED2.9 billion) at its AGM, including a $394 million (AED1.4 billion) dividend for the second half of the year. This represents a 10% increase compared to the previous year, driven by the company's solid financial performance. In 2025, the company aims to enhance operational capacity, targeting revenue between $4.6-$4.8 billion (AED16.9-17.6 billion). The company plans to expand its fleet to over 148 rigs by 2026 and integrate AI-enabled technologies to boost efficiency. By 2028, the company expects to provide a dividend payment of at least $1.15 billion in line with its progressive dividend policy to increase dividends by 10% annually. Adnoc Logistics & Services Adnoc L&S shareholders approved a final 2024 dividend payment of $136.5 million (AED 501 million), bringing total dividend payments for the year to $273 million and reflecting a 5% year-on-year increase as aligned with its progressive dividend policy. Between its 2023 IPO and the end of 2024, Adnoc L&S delivered more than 178% in total shareholder returns (including share price appreciation and dividends paid), significantly outperforming the ADX and reinforcing investor trust in its long-term strategy. Looking ahead, the company is continuing to expand its service offerings both locally and internationally, growing its energy-efficient fleet and accelerating organic and inorganic growth. In 2024, the company secured 21 environmentally efficient vessels, achieving an 11% reduction in carbon intensity compared to the previous year. With AI-driven solutions and next-generation vessels, Adnoc L&S aims to enhance operational efficiency, reduce emissions, and support the UAE's economic ambitions. Borouge At its in-person AGM on April 7, Borouge shareholders approved a final 2024 dividend of $650 million (AED2.4 billion), bringing the total annual payout to $1.3 billion (AED4.77 billion), equivalent to 15.88 fils per share. Additionally, shareholders authorised a share buyback program of up to 2.5% of outstanding shares, reflecting the company's strong confidence in its future prospects and the significant upside potential beyond the current share price. At the AGM, Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of ADNOC, and Borouge Chairman, spoke about the proposed creation of Borouge Group International that will bring together Borouge and Borealis and acquire Nova Chemicals. The new company has been designed to deliver consistently strong dividends and significant near-term growth, with a production capacity of 13.6 million tonnes – nearly tripling Borouge's current capacity. Borouge also announced it will increase its 2025 dividend to at least 16.2 fils per share, and following completion of the Borouge Group International transaction, the new entity intends to distribute an estimated total annual dividend of $2.2 billion (AED8.1 billion), equivalent to a minimum of 16.2 fils per share from 2026 to 2030. Fertiglobe Fertiglobe shareholders approved the proposed payout of a $125 million (AED459 million) dividend for the second half of 2024, bringing total 2024 dividends to $275 million (AED1.01 billion), equal to 12.2 fils per share. Since its 2021 IPO, the company has distributed $2.5 billion (AED 9.2 billion) to shareholders, delivering one of the highest total shareholder returns on the ADX over that time. During its AGM, shareholders also approved the repurchase of up to 2.5% of its issued shares via a share buyback, reflecting Fertiglobe's confidence in its long-term growth strategy and commitment to delivering sustainable value to shareholders. Fertiglobe has successfully realized its cost optimization target of $50 million in run-rate savings and completed 75% of its Manufacturing Improvement Plan, which is projected to generate an additional $100 million in annual EBITDA by the end of 2025. The company will present an update on its strategy and value enhancement initiatives at its Capital Markets Day with Q1 2025 results on May 13, 2025 in Abu Dhabi.
Zawya
21-04-2025
- Business
- Zawya
ADNOC listed companies to distribute over $6.7bln in total annual dividends
ADNOC Group's publicly traded portfolio companies collectively endorsed over $6.7 billion (AED24.6 billion) in annual dividend payments to shareholders for 2024, reflecting their strong financial health and commitment to shareholders value. At the Annual General Meetings (AGM) of all six listed companies, shareholders voted overwhelmingly to approve the dividend proposals brought forth by each companies' Boards of Directors. Each of the six listed companies prioritize strong returns and value creation for shareholders, while advancing their strategies to deliver profitable growth. ADNOC Distribution At its AGM on March 26, ADNOC Distribution shareholders approved a final cash dividend of $350 million (AED1.3 billion) for the second half of 2024, bringing total annual dividends to $700 million (AED2.6 billion), equal to 20.57 fils per share. Since its IPO in 2017, ADNOC Distribution has paid out $4.8 billion (AED17.6 billion) in dividends and delivered a 92% total shareholder return as of the end of 2024. The company is planning capital expenditures of $250-300 million (AED917.5 million-1.1 billion) in 2025 while maintaining its dividend policy to distribute to shareholders at least $700 million (AED2.6 billion) or 75% of net profit, whichever is higher. ADNOC Gas ADNOC Gas shareholders approved the companies' proposal to distribute $1.7 billion (AED 6.2 billion) for the second half of the year, raising the 2024 annual dividend to $3.41 billion (AED12.5 billion), the largest distribution by any issuer on the Abu Dhabi Securities Exchange (ADX). The dividend payout and the company's strong 2024 results, which include record adjusted net income of $5 billion (AED18.35 billion), propelled it to deliver 19% total shareholder returns for the year. ADNOC Gas is also positioned for potential inclusion in the MSCI and FTSE indices later this year following the company's landmark secondary share offering of 3.1 billion shares—the largest of its kind in ADX history and the UAE's largest secondary offering. ADNOC Drilling Shareholders of ADNOC Drilling approved the proposed 2024 annual dividend distribution of $788 million (AED2.9 billion) at its AGM, including a $394 million (AED1.4 billion) dividend for the second half of the year. This represents a 10% increase compared to the previous year, driven by the company's solid financial performance. In 2025, the company aims to enhance operational capacity, targeting revenue between $4.6-$4.8 billion (AED16.9-17.6 billion). The company plans to expand its fleet to over 148 rigs by 2026 and integrate AI-enabled technologies to boost efficiency. By 2028, the company expects to provide a dividend payment of at least $1.15 billion in line with its progressive dividend policy to increase dividends by 10% annually. ADNOC Logistics & Services ADNOC L&S shareholders approved a final 2024 dividend payment of $136.5 million (AED 501 million), bringing total dividend payments for the year to $273 million and reflecting a 5% year-on-year increase as aligned with its progressive dividend policy. Between its 2023 IPO and the end of 2024, ADNOC L&S delivered more than 178% in total shareholder returns (including share price appreciation and dividends paid), significantly outperforming the ADX and reinforcing investor trust in its long-term strategy. Looking ahead, the company is continuing to expand its service offerings both locally and internationally, growing its energy-efficient fleet and accelerating organic and inorganic growth. In 2024, the company secured 21 environmentally efficient vessels, achieving an 11% reduction in carbon intensity compared to the previous year. With AI-driven solutions and next-generation vessels, ADNOC L&S aims to enhance operational efficiency, reduce emissions, and support the UAE's economic ambitions. Borouge At its in-person AGM on April 7, Borouge shareholders approved a final 2024 dividend of $650 million (AED2.4 billion), bringing the total annual payout to $1.3 billion (AED4.77 billion), equivalent to 15.88 fils per share. Additionally, shareholders authorised a share buyback program of up to 2.5% of outstanding shares, reflecting the company's strong confidence in its future prospects and the significant upside potential beyond the current share price. At the AGM, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of ADNOC, and Borouge Chairman, spoke about the proposed creation of Borouge Group International that will bring together Borouge and Borealis and acquire Nova Chemicals. The new company has been designed to deliver consistently strong dividends and significant near-term growth, with a production capacity of 13.6 million tonnes – nearly tripling Borouge's current capacity. Borouge also announced it will increase its 2025 dividend to at least 16.2 fils per share, and following completion of the Borouge Group International transaction, the new entity intends to distribute an estimated total annual dividend of $2.2 billion (AED8.1 billion), equivalent to a minimum of 16.2 fils per share from 2026 to 2030. Fertiglobe Fertiglobe shareholders approved the proposed payout of a $125 million (AED459 million) dividend for the second half of 2024, bringing total 2024 dividends to $275 million (AED1.01 billion), equal to 12.2 fils per share. Since its 2021 IPO, the company has distributed $2.5 billion (AED 9.2 billion) to shareholders, delivering one of the highest total shareholder returns on the ADX over that time. During its AGM, shareholders also approved the repurchase of up to 2.5% of its issued shares via a share buyback, reflecting Fertiglobe's confidence in its long-term growth strategy and commitment to delivering sustainable value to shareholders. Fertiglobe has successfully realized its cost optimization target of $50 million in run-rate savings and completed 75% of its Manufacturing Improvement Plan, which is projected to generate an additional $100 million in annual EBITDA by the end of 2025. The company will present an update on its strategy and value enhancement initiatives at its Capital Markets Day with Q1 2025 results on May 13, 2025 in Abu Dhabi.
