FAB reports group net profit of AED5.1 billion in Q1 2022

emirates7 - First Abu Dhabi Bank (FAB) has reported its financial results for the three-month period ended 31st March 2022. The Group produced a strong set of results with a net profit of AED5.1 billion, up 107 percent from AED2.5 billion in the first quarter of 2021.

The results represent the highest quarterly net profit in the bank's history, according to financial results released on Thursday.

The bank's total income reached AED7.3 billion and includes an AED2.8 billion net gain on the disposal of majority stake in payments business Magnati. Core underlying performance was healthy, driven by higher net interest income, a pick-up in fees and commissions and the positive contribution from Bank Audi Egypt, helping offset lower trading and investment income.

Operating expenses were up year-on-year on the back of ongoing investments in digital and strategic initiatives and the inclusion of Bank Audi Egypt from Q2 2021. The Group demonstrates strong fundamentals across asset quality, liquidity, funding and capital metrics.

Annualised Earnings Per Share (EPS) stands at AED1.84, up 113 percent compared to the first quarter of 2021.

Operating income increased to AED4.5 billion, up 2 percent year-on-year or 9 percent, on an underlying basis excluding Magnati-related gains and real estate gains in Q1 2021.

Impairment charges raised to AED457 million, compared to AED470 million in the first quarter of 2021. Operating costs was at AED1.5 billion, reflecting ongoing strategic and digital investments Loans, advances and Islamic financing at AED434 billion, up 15 percent year-on-year and 6 percent year-to-date.

Customer deposits increased to AED600 billion, up 6 percent year-on-year, down 2 percent year-to-date; Deposit mix improved with CASA balances adding AED22 billion sequentially to represent 52 percent of total customer deposits.

Liquidity Coverage Ratio (LCR) increased by 120 percent, underlining a strong liquidity position. Healthy asset quality metrics with NPL ratio was at 3.8 percent, and adequate provision coverage at 98 percent.

Common Equity Tier 1 (CET1) increased to reach 13.0 percent, comfortably above regulatory requirements, representing a solid capital position.