First Abu Dhabi Bank (FAB), the UAE’s largest lender, reported a net profit of Dh8.4 billion and a 16 percent increase in revenue to Dh15.7 billion, highlighting the bank’s steady growth. FAB stated that profit before tax rose 15 percent annually to Dh10 billion. Net profit for the second quarter reached Dh4.3 billion as operating income increased by 14 percent year-on-year to Dh7.8 billion.
The bank attributed its strong performance to double-digit growth in both interest and non-interest income, supported by robust business momentum, expansion in Net Interest Margin (NIM), and a better revenue mix. Non-Funded Income (NFI) contributed 38 percent to group revenue, up from 35 percent in the first half of 2023. With total assets at Dh1.2 trillion as of June 2024, FAB maintained its status as the largest bank in the UAE. Loans, advances, and Islamic financing grew by 6.0 percent to Dh513 billion, indicating strong demand and market share gains.
FAB facilitated an additional Dh52 billion in sustainable finance during Q2 2024, bringing the total to Dh200 billion, which is 41 percent of its 2030 target. Hana Al Rostamani, Group CEO of FAB, emphasized the bank’s role as a leader in the Mena banking sector, delivering robust results in the second quarter and first half of 2024. She noted that FAB is leveraging its international network to capitalize on global market opportunities and is expanding business corridors in alignment with national ambitions.
Lars Kramer, Group CFO of FAB, highlighted the bank’s continued high returns and diversified growth, investing strategically for future efficiencies. The consistent growth in interest and non-interest income reflects efforts to enhance cross-sell and deepen client relationships. FAB also benefited from improvements in net interest margins for the fourth consecutive quarter, indicating effective balance sheet management.
In the first half of 2024, FAB achieved a return on tangible equity (RoTE) of 17.3 percent, including 18.1 percent in Q2 2024, underscoring its focus on shareholder value. The bank maintained strong balance sheet fundamentals with a non-performing loans (NPL) ratio of 3.7 percent and a liquidity coverage ratio of 152 percent. The group’s cost-to-income ratio of 24.4 percent demonstrated superior operating efficiency.
FAB reported robust performance across all business lines in H1 2024, led by Investment Banking and Global Markets, with significant increases in operating income. The bank continued to unlock long-term value through sustainable growth, strategic partnerships, and enhanced customer experience. FAB remains on track to meet its 2024 and medium-term guidance, aiming to deliver sustainable shareholder returns.
