The largest bank in the UAE, FAB, continued its impressive profit streak, contributing to a substantial nine-month total of AED 12.4B.
This marks a substantial 58 percent increase compared to the previous year, excluding the proceeds from the sale of their stake in the payments processing firm Magnati in 2022.
At the end of the nine months, the revenue stood at AED 20.5B, and these results are indicative of potential growth for other leading banks in the UAE.
“FAB’s reaffirmed superior credit ratings of AA- (or equivalent), our international and diversified franchise, our financial strength and ample liquidity, are among the distinct competitive strengths that position us well to continue our steady progress towards our strategic goals,” said Hana Al Rostamani, Group CEO of FAB.
It was almost expected that FAB would maintain its strong performance from the first half, but what truly stands out is the remarkable growth in profits.
Strong Profits Amid 12% Deposit Growth in High-Interest Rate Climate
These results have been achieved in a high-interest rate environment, with customer deposits increasing by 12% to reach Dh785 billion, indicating a very strong liquidity profile, according to Gulf Business.
FAB shareholders trading on ADX will be eager to see a rebound in the stock, which is currently priced at Dh13.26, a decline from its 52-week high of AED 18.38 in November last year.
As of the end of September, the bank’s assets have reached AED 1.2T, driven by factors such as cross-border trade, economic growth, and the bank’s commitment to transitioning towards a low-carbon future across its global network.
“As the markets strengthen their trade flows and form broader economic partnerships across the globe, FAB’s international franchise ensures that we continue to play our unique role as a facilitator of global trade and investment,” said Hana.
“FAB produced another strong set of results in the third quarter, delivering double-digit growth in revenue and bottom-line and building on the core growth momentum achieved since the start of the year,” said Lars Kramer, Group Chief Financial Officer.
According to the CFO, “Operating income grew 38 per cent year-on-year from continued expansion in net interest income coupled with growth from diversified revenue streams, demonstrating our ongoing strategic focus on deepening client relationships across our global franchise.”