UAE-based First Abu Dhabi Bank (FAB) said Thursday that its first-quarter profit shot up 70% year-on-year to $1.1 billion (AED 3.9 billion) thanks to higher interest rates and enhanced income generation across a diversified franchise.
The UAE’s biggest lender said in a regulatory filing that its group revenue surged by 51% year-on-year to $1.8 billion (AED 6.7 billion) for the quarter that ended March 2023, driven by sustained momentum across all business segments, enhanced income generation across products and geographies.
The bank has maintained cost discipline amid continued investments to support business growth.
Net interest income soared by 41% year-on-year to $1.2 billion (AED 4.4 billion) on growth in business volume and improvements in the margin, while non-interest income shot up by 74% to $627.1 million (AED 2.3 billion) in the quarter.
FAB is positioned to drive sustainable growth and returns, and its provision coverage ratio touched 101% for the three months ended March 2023, it said.
Similarly, FAB has raised $1.1 billion (AED 4 billion) through senior wholesale funding. Its liquidity coverage ratio was 151%, with a net interest margin of 1.65%.
The bank’s gross loans rose 9% to $134.5 billion (AED 494 billion), while customer deposit was up by 30% year-on-year to $212.5 billion (AED 780.5 billion) by the end of March.
The Abu Dhabi-based bank said its total assets rose to $322.7 billion (AED 1.185 trillion) by the end of March 2023.
Last year, FAB sold its 60% stake in Magnati to Brookfield Business Partners in a deal that values the payments business arm at $1.15 billion (AED 4.2 billion).
FAB said in June 2022 that its Egyptian unit had been rebranded as ‘FABMISR’ following the completion of its merger with Bank Audi Egypt. The Abu Dhabi bank retains a 40% stake and continues the partnership with the payments firm through a long-term relationship agreement.
