First Abu Dhabi Bank (FAB), the UAE’s largest bank institutions reported its financial results for the first quarter ended 31 March 2018 today.
2018 is off to a solid start with the group net profit reported at AED 3 billion, up 2 per cent year-on-year and six per cent quarter-on-quarter, while the annualised earnings per share (EPS) came in at AED 1.06, compared to AED 1.04 in the same period last year.
“As we enter our second year, FAB continues to make significant progress in delivering on its business objectives and integration milestones, with IT integration activities in particular moving forward at a steady pace and according to plan. As part of our business expansion strategy, we are also extending our presence into Saudi Arabia, after receiving commercial and investment banking licenses from the Saudi Arabian Monetary Authority and Capital Market Authority,” said Abdulhamid Saeed, Group Chief Executive Officer of FAB.
The bank’s operating income was reported at AED 4.9 billion, compared to AED 5.2 billion in the first quarter of 2017 (which included opportunistic investment gains of around AED 400 million).
The cost discipline and sustained synergy realisation continue to support market-leading cost-to-income ratio (excluding integration costs) of 25.8 per cent, improving from 27.2 per cent in the same period of 2017, and the impairment charges (net) at AED 439 million compared to AED 641 million in Q1 2017.
Total assets stand at AED 678 billion, up one per cent quarter-on-quarter and three per cent year-on-year; loans and advances (net) and customer deposits both grew two per cent quarter-on-quarter to AED 338 billion and AED 404 billion, respectively.
CASA deposits represent 41 per cent of total customer deposits, up from 38 per cent as of December-end 2017, and robust asset quality with non-performing loan ratio at 3.1 per cent and strong provision coverage at 127 per cent.
The bank maintained strong liquidity and capital ratios, and improved returns. FAB’s liquidity position remains highly comfortable with loan-to-deposit ratio at 84 per cent and liquidity coverage ratio (LCR) at 112 per cent. Common Equity Tier-1 (CET1) ratio comfortably in excess of regulatory requirements at 12.4 per cent, and the return on Tangible Equity (RoTE) at 17.2 per cent, up from 16.1 per cent in from this time last year.
“Looking ahead to the remainder of 2018, we remain steadfast in our commitment to support the growth ambitions of our shareholders, customers, employees and all other stakeholders. We will continue to contribute to the late Sheikh Zayed bin Sultan Al Nahyan’s vision of a strong and prosperous UAE, as we put our customers first and remain ahead of market trends,” said Saeed.