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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.
Khaleej Times
29-04-2025
- Business
- Khaleej Times
First Abu Dhabi Bank's Q1 profit jumps 23% to Dh5.13b
First Abu Dhabi Bank (FAB), the UAE's largest bank, announced a 23 per cent increase in its first-quarter net profit, reaching Dh5.13 billion compared to the same period last year. The bank's profit before tax also climbed 22 per cent to Dh6.13 billion, driven by strong client activity and diversified income streams, according to a statement released on Tuesday. FAB's group revenue for Q1 2025 rose 11 per cent year-on-year to Dh8.81 billion, fuelled by double-digit growth across all business segments. Non-interest income, which surged 22 per cent, accounted for 43 per cent of total revenue, highlighting the bank's successful diversification strategy. Loans and deposits grew by 8 per cent and 4 per cent, respectively, while total assets increased 6.0 per cent to surpass Dh1.3 trillion for the first time. The bank's net interest margin improved by 4 basis points quarter-on-quarter to 1.97 per cent, and its cost-to-income ratio tightened to 22.3 per cent from 24 per cent in Q1 2024. The bank's return on tangible equity (RoTE) rose to 20.4 per cent, up from 17.4 per cent in Q1 2024, aligning with FAB's medium-term target of exceeding 16 per cent. Supported by an AA- credit rating, the highest in the Mena region, FAB's solid balance sheet underscores its position as a leading financial institution in the region and a key driver of the UAE's economic growth. Hana Al Rostamani, FAB 's group chief executive officer, attributed the strong performance to sustained growth across the bank's business segments and its expanding international presence. 'We continue to capitalise on the UAE's economic growth and our global footprint, expanding in investment banking, wholesale banking, personal, business, wealth, and privileged client banking,' she said. Al Rostamani added that FAB's focus on innovation and customer experience, supported by advanced technology and AI, which has bolstered its wealth and private banking franchise, with assets under management soaring 57 per cent year-on-year. Lars Kramer, FAB's group chief financial officer, noted that operating income grew 11 per cent to Dh8.81 billion, offsetting the impact of increased UAE corporate tax. 'Strong commercial momentum, resilient margins, and robust fee and trading performances contributed to these results,' Kramer said. He highlighted FAB's disciplined strategy, operational efficiencies, and prudent risk management as key factors in navigating evolving market dynamics. Investment banking FAB's investment banking and markets division delivered a standout performance, with revenue up 15 per cent year-on-year and 22 per cent quarter-on-quarter. The bank's equity and debt capital markets franchises facilitated $29 billion in client fundraising, a 56 per cent increase from Q1 2024. Wholesale banking revenue grew 12 per cent, supported by 13 per cent growth in loans and 18 per cent in deposits. The personal, business, wealth, and privileged client banking segment saw an 11 per cent revenue increase year-on-year, driven by strong retail momentum and customer acquisitions. Customer deposits rose 4 per cent year-on-year and 7 per cent year-to-date to Dh839 billion, reflecting robust inflows from both wholesale and retail clients. Current and savings account (Casa) balances grew 5 per cent year-to-date and 10 per cent year-on-year to Dh376 billion, representing 45 per cent of total deposits. FAB also raised Dh5.3 billion in senior wholesale funding, including a $600 million five-year Sukuk at a record-tight spread for a Mena bank and a $750 million five-year Formosa FRN bond at the lowest pricing ever achieved by a Mena bank in that market. The bank said its Q1 2025 results position it for sustained growth, with a focus on leveraging its strong capital base, liquidity, and diversified business model to drive long-term value for shareholders and stakeholders while remaining committed to innovation and delivering consistent returns in a dynamic global
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
