First Abu Dhabi Bank has witnessed a 19 percent increase in the group net profit of $3.4 billion with a 3 percent rise in the fourth-quarter net profit of $89.8 million. For the full year of 2021, the group’s revenues equaled Dhs 21.7 billion, a 17 percent increase while its impairment charges and operating costs stood at Dhs 2.7 billion and Dhs. 5.8 billion respectively, a 9 percent rise.
Total assets exceeded Dhs 1 trillion, up 9 percent from a year-earlier period, while customer deposits stood at Dhs614bn, up 14 percent year-on-year. Loans, advances, and Islamic financing, meanwhile, equaled Dhs410bn, marking a 6 percent year-on-year increase. FAB’s liquidity coverage ratio (LCR) measured to 134 percent, the NPL ratio stood at 4 percent, and provision coverage at 98 percent.
Sheikh Tahnoon bin Zayed Al Nahyan, chairman of the bank, said: “2021 has been a year of a strong economic rebound, with unprecedented opportunities for innovation and growth, despite continued uncertainties due to Covid-19. Reflecting our deep commitment to deliver superior and sustainable returns for our shareholders, FAB’s board of directors is recommending a dividend per share of 70 fils equivalent for the full year ended December 31, 2021, split into 49 fils in cash and 21 fils as scrip dividend in lieu of cash.”
Hana Al Rostamani, the Group CEO, added: “I am pleased to report a very strong set of results for the Group in 2021 with FAB delivering record revenue and net
profit in a year of an economic rebound, and with total assets crossing the Dhs 1 trillion mark, a historic milestone.”
“In addition to a strong trading performance, this sustained business momentum resulted in a 69 percent growth in our investment banking revenue from the prior year. It was also a landmark year for FAB on the international front, as we continued to expand in our targeted markets, helped by the acquisition of Bank Audi Egypt. As a result, revenue from our international operations grew 26 percent year-on-year, with MENA contributing 52 percent, from 39 percent in 2020.”
The bank has also made significant progress in optimizing the digital processes on the improvement of customer experience and enhancement of efficiencies. This, in turn, led to the first launch of market solutions such as DigiCheques on the mobile app resulting in an astounding increase in transactions via online platforms. Therefore, FAB’s new target is to facilitate sustainable finance projects that are over $75 billion by the year 2030 as they aim to act as a vital mediator to the regional sustainable finance agenda.
