FAB reports H1 2021 Group Net Profit of $1.47 billion

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  • The increase was driven by revenue growth from the bank’s core businesses despite headwinds from rate cuts and lower impairment charges

  • Increased contribution from international operations following the recent acquisition in Egypt also failed to dampen growth

First Abu Dhabi Bank or FAB saw a first-half 2021 Group Net Profit of AED5.4 billion ($1.47 billion), said local reports on Wednesday, July 28.

The reports quoted FAB as saying during its result announcements that this was an 11% increase year on year.

The increase was driven by revenue growth from the bank’s core businesses despite headwinds from rate cuts, increased contribution from international operations following the recent acquisition in Egypt, and lower impairment charges.

Cost discipline was maintained amid ongoing investments in strategic and digital initiatives with cost-to-income ratio at 28.3%, said the bank.

The annualised Earnings Per Share stood at 96 fils ($0.26), which was 14% higher compared to the first half of 2020, while the first-half operating income reached AED9.6 billion ($2.61 billion), up 2% year-on-year.

Operating costs stood at AED2.8 billion ($762 million), up 7% year-on-year. Total assets reached AED944 billion ($257 billion), up 3% year-to-date.

Customer deposits increased to AED575 billion ($156.54 billion), up 6% year-to-date and 1% sequentially.

Loans and advances stood at AED399 billion ($108.63 billion), up 3% year-to-date and 5% sequentially.

The NPL ratio was at 3.9%, with provision coverage at 97%, while Common Equity Tier 1 at 13% was above regulatory requirements, said the bank.

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