FAB has announced a strong start to 2023, with impressive returns resulting from their growth strategy.
The Group reported a net profit of AED 3.9 billion in the first quarter, with key performance indicators indicating significant growth across all business segments and product lines. Operating income increased by 51% year-on-year, driven by strong growth in net interest and non-interest income. The Q1'23 net profit rose by 60% sequentially, leading to an annualised Return on Tangible Equity (RoTE) of 18.5%. Excluding AED 2.8 billion Magnati-related gains in Q1'22, the net profit was up 70% year-on-year. The cost-to-income ratio improved to 25.1%, compared to 33.2% in Q1'22. Impairment charges (net) were at AED 798 million, implying an annualised cost of risk of 62 bps.
Hana Al Rostamani, Group CEO, said,
’2023 is off to a strong start with the Group delivering an operating income of AED 6.7 billion, a 60% growth in net profit sequentially to AED 3.9 billion and a return on tangible equity of 18.5% driving strong capital accretion in the first quarter. Building on a record year in 2022 and prudent actions taken in the fourth quarter of last year, the notable improvement across these metrics was driven by sustained momentum across all business segments and product lines, cost and risk discipline, and our proven ability to navigate evolving market conditions.
‘’The enhanced contribution from our international operations further demonstrates the strength of our diversified franchise and solid delivery against our growth strategy,"
Despite turbulence in the global banking industry, FAB continues to operate on a sound balance sheet foundation, including a solid capital position and a very strong liquidity profile. The Group attracted AED 80 billion in customer deposits in the first quarter alone, highlighting the depth of their relationships and their superior credit ratings of AA- or equivalent as one of the safest banks worldwide.
News Source: Emirates News Agency