Abu Dhabi (Al-Ittihad) The net profit of the First Abu Dhabi Bank Group, during the first quarter of this year, amounted to 5.1 billion dirhams, compared to 2.5 billion dirhams during the first quarter of 2021, a growth of 107%, which represents the highest annual net profit in the history of the bank.
According to the financial results for the first quarter of 2022, the basic earnings per share grew by 113% to 1.84 dirhams, compared to the first quarter of 2021.
Total revenues exceeded 7.3 billion dirhams, including net gains of 2.8 billion dirhams, as a result of selling a stake in the payments company “Magnati”.
Operating revenues increased by 2% to 4.5 billion dirhams, compared to the same period last year, and by 9%, excluding gains from the sale of the majority stake in “Magnati” for payments and gains related to real estate business during the first quarter of 2021.
Provisions for impairment amounted to 457 million dirhams, compared to 470 million dirhams during the first quarter of 2021. Operational costs amounted to 1.5 billion dirhams, reflecting continued investments in digital and strategic initiatives. And loans, advances and Islamic financing have grown 6% to AED 434 billion, since the beginning of 2022, and by 15% compared to the first quarter of 2021.
Customer deposits amounted to 600 billion dirhams, an increase of 6% compared to the first quarter of 2021, and a decrease of 2% since the beginning of 2022. , an increase of 52% of total customer deposits, and the group maintained strong liquidity ratios, as the liquidity coverage rate reached 120%. It also achieved good asset quality rates, as the non-performing loans ratio reached 3.8%, while the coverage ratio of provisions reached 98%.
The Tier 1 Equity Ratio was 13%, which is higher than the regulatory requirements, reflecting the strength of the Group’s capital.
growth strategy
Hana Al Rostamani, Group CEO of First Abu Dhabi Bank, said: “I am pleased to announce that First Abu Dhabi Bank achieved a net profit of AED 5.1 billion during the first three months of 2022, which represents the highest quarterly net profit in the bank’s history, as we continue to make progress. Notable in our growth strategy and various transformation and development initiatives, in line with our long-term plans to provide the best sustainable value for our shareholders, customers and employees.” She added, “Our core business has performed well during this period of growth in economic activities in the UAE, benefiting from the momentum of work in progress, growth of existing business and improved consumer confidence.” She stated that the group’s financial results during the first quarter of this year include gains from the sale of the majority stake in “Magnati Payments”, which reflects the importance of the payments business in paving the way towards long-term growth in cooperation with a strategic partner, as this has consolidated our leading position in the payments and services sector. digital in the region.
Al Rostamani added: “Internationally, the Egyptian market will remain the focus of our future interests, while we continue the process of our business merger with Bank Audi Egypt, which is scheduled to be completed within the next few months. We also continued to strengthen our presence in new target markets, as we started our business in our branch in Shanghai in March, and opened a representative office in Iraq, to be a strategic addition to our geographical presence, at a time when the UAE is still considered one of the most important trading partners of Iraq.
rise in various sectors
In turn, James Burdett, Chief Financial Officer of the First Abu Dhabi Bank Group, said: “The group achieved a good operational performance, as it recorded an increase in various sectors of its business, especially at the end of the first quarter of 2022, where the group’s lending rates increased by 6% from the beginning of the year until the end of the quarter. First, lending margins have improved. The deposit mix witnessed an improvement, as current and savings account deposits increased to add 22 billion dirhams compared to the last quarter of 2021, which represents 52% of the total customer deposits. The increased interest rates will also contribute to achieving higher returns until the end of this year.”
