First Abu Dhabi Bank’s Q1 2023 net profit up 70%

First Abu Dhabi Bank’s Q1 2023 net profit up 70%

UAE’s First Abu Dhabi Bank (FAB), the country’s biggest lender by assets, said its first-quarter net profit surged by 70 per cent year-on-year (YoY) driven by sustained momentum across all business segments and the bank’s ability to navigate evolving market conditions. FAB’s net profit in the first quarter was $1.06bn (Dhs3.9bn), excluding the Dhs2.8bn from the sale of a stake in its payments business Magnati in the first quarter of 2022, translating to an annualised return on tangible equity (RoTE) of 18.5 per cent. The banking group’s operating income jumped 51 per cent YoY to reach Dhs6.7bn compared to Dhs4.5bn in the first quarter of 2022, driven by strong growth in both net interest and non-interest income. Impairment charges in Q1 2023 were at Dhs798m, up 74 per cent from a year earlier implying an annualised cost of risk of 62 basis points (bps). “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,” said Hana Al Rostamani, FAB’s group CEO.