Abu Dhabi, UAE, 21 April 2021: First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, reported its financial results for the first quarter ended 31 March 2021.
Group Net Profit was AED 2.5 Billion, up 3% compared to AED 2.4 Billion in the first quarter of 2020. Revenue was 4% lower year-on-year, as lower net interest income due to the rate cuts in 2020, was partially offset by higher other income. Net impairment charges were 36% lower year-on-year reflecting improving economic conditions and adequate provision buffers, while operating expenses reduced 3% as the Group maintained strong cost discipline, while continuing to invest in digital and strategic initiatives. The Bank preserved strong liquidity and funding ratios during the period, a solid capital position, and resilient asset quality underpinned by a conservative risk profile. FAB continued to support customers through payment deferrals and the relief measures under the UAE Central Bank TESS programme, which has been further extended.
Commenting on the Group’s financial results, Hana Al Rostamani, Group Chief Executive Officer of FAB said: “FAB’s strong foundations and competitive strengths continue to support the bank’s ability to achieve a resilient performance in a challenging quarter characterised by a slower than expected recovery in business activity. In addition to our strong performance throughout the quarter, we have made significant progress on the delivery of our strategic priorities, which represent key milestones for both FAB and our industry. We completed the carve out of our payments business and launched “Magnati”, a unique and intelligent payments platform. We continued to lead the market in terms of green financing, and as a leading Green bond issuer regionally and globally, with FAB Green Bonds outstanding now exceeding USD 1 Billion. We are also in the process of finalising our acquisition of Bank Audi, our first international acquisition in a strategic and growing market. As economic and business activity gather further momentum, I am confident that we are well positioned to benefit from the opportunities that lie ahead for us and for our customers, and to continue to create sustainable value for all our stakeholders”.