FAB's net profit for H1 2024 was AED8.4 billion with a revenue of AED15.7 billion.
First Abu Dhabi Bank (FAB) achieved record financial results in the first half of 2024. The bank reported a net profit of AED 8.4 billion and revenue of AED 15.7 billion, marking a 16 percent year-on-year (YoY) growth. Profit before tax grew by 15 percent YoY to AED 10.0 billion. In the second quarter of 2024, the net profit amounted to AED 4.3 billion with operating income reaching AED 7.8 billion, a growth of 14 percent YoY.
FAB's strong performance was driven by double-digit growth in interest and non-interest income sources, supported by strong business momentum, expansion in Net Interest Margin (NIM), and an improved revenue mix. Non-Funded Income (NFI) contributed 38 percent to Group revenue, up from 35 percent in H1 2023.
As of June-end 2024, FAB confirmed its position as the largest bank in the UAE with total assets at AED 1.2 trillion (US$320 billion). Loans, advances, and Islamic financing grew by 6 percent year-to-date (YTD) and YoY to AED513 billion, reflecting healthy demand and market share gains across key segments and geographies.
In the first half of 2024, FAB achieved a return on tangible equity (RoTE) of 17.3 percent, including 18.1 percent in Q2 2024, demonstrating the Group's commitment to delivering shareholder value.
The bank maintained strong balance sheet fundamentals with solid asset quality metrics, including a non-performing loans (NPL) ratio of 3.7 percent, and a strong liquidity profile displayed in a liquidity coverage ratio of 152 percent.
FAB's cost-to-income ratio stood at 24.4 percent as of June-end 2024, highlighting superior operating efficiency.
Hana Al Rostamani, Group Chief Executive Officer of FAB, stated, "FAB is reaffirming its position as a leading force in the MENA banking sector, with the Group delivering another strong set of results in the second quarter and first half of 2024. Our outlook remains anchored in the strong fundamentals of the UAE and Abu Dhabi as a global economic powerhouse and preferred hub for investment, talent, and innovation. We remain on track to meet our 2024 and medium-term guidance, and to deliver sustainable shareholder returns."
Lars Kramer, Group Chief Financial Officer of FAB, added, "Building on a robust first quarter, we are very pleased with our progress in the first half of 2024. We continued to achieve high returns at scale while driving diversified growth across our franchise and investing strategically in order to create future efficiencies."