First quarter profit of AED 3.9 billion for First Quarter of First Abu Dhabi

First Abu Dhabi Bank (FAB) Group announced a net profit of AED 3.9 billion in the first quarter of this year, up 60% compared to the fourth quarter of 2022 and 70% compared to the same period last year after excluding profits from the sale of a stake in Magnati in the first quarter of 2022.
The bank added in a statement today that it achieved a strong start to 2023 with operating income of AED 6.7 billion in the first quarter of this year, an increase of 14% compared to the fourth quarter of 2022, and by 51% compared to the same period last year, as a result of the continuous momentum of all business categories and the promotion of product revenue growth in various regions.
Return on tangible equity stood at 18.5% at the end of March 2023, Tier 1 equity was 13.2%, and deposit inflows reached AED 80 billion in the first quarter of 2023, underscoring the strong AA credit rating – or its equivalent as one of the safest banks in the world
. The results for the first quarter of 2023 confirm the significant progress in our growth strategy as the region's preferred trade-supporting financial institution International, economic growth and the transition towards a low-carbon future, while emphasizing our commitment to achieving the best sustainable returns for shareholders.
Hana Al Rostamani, Group CEO of FAB, said that the bank started 2023 with strong results to complement the record performance of 2022 and the precautionary measures taken during the fourth quarter of last year, as these indicators witnessed a significant improvement as a result of the continuous momentum of all business areas and within various production categories, cost and risk control and our ability to follow and keep pace with changing market conditions. The remarkable contribution of international operations demonstrates the impact of diversified business and service on the Group's growth strategy."
Al Rostamani added: "Despite the challenging banking sector in global markets, FAB Group continues to perform on strong balance sheets, liquidity and capital ratios. During the first quarter, we managed to attract a high percentage of customer deposits of AED 80 billion, which confirms the strength of customer relationships and our outstanding credit rating AA- or equivalent, as one of the safest banks in the world."
"During the first quarter of this year, we continued to keep pace with the changing needs of customers across all categories, and we will leverage our broad business scope, specialization, partnerships and technology transformation capabilities to build a modern, customer-centric banking institution capable of meeting the requirements of the future. Our business strategy has seen us continue to enhance and diversify our product and service offerings, establish our presence in priority and strategic markets, while maintaining the highest standards of risk management, compliance and governance, and continue to strengthen our competitive position by investing in a number of key areas, such as human talent, technology and digital initiatives."
"FAB will continue to maintain its leading position to address challenges and crises, achieve sustainable growth and shape the future of the financial and banking services industry in the UAE and the region, and I am delighted to see the promising opportunities that await the bank's business as we continue to support the growth ambitions of the UAE and the region," she said.
According to the bank's statement, Islamic loans, advances and financing amounted to AED 473 billion, an increase of 3% compared to the previous quarter, and by 9% compared to the same period of 2022, and customer deposits amounted to AED 781 billion, an increase of 11% compared to the last quarter, and by 30% compared to the same period of 2022, where current and savings account deposits amounted to AED 316 billion, an increase of 6% compared to the last quarter.
The group maintainedStrong liquidity ratios, with a liquidity coverage ratio of 151%, a non-performing loans ratio of 3.8% while a provision coverage ratio of 101%, and a Tier 1 equity ratio increased by 57 basis points compared to the previous quarter to reach 13.2% due to strong revenue growth and improved risk-weighted assets.
The Group's strong business has contributed to significant growth in assets and liabilities, as well as its strong ability to continue to support clients' investments and business and their growth and success plans, and its strong position has enabled it to continue to grow and achieve sustainable returns for its shareholders.