ABU DHABI, April 28 / WAM / The First Abu Dhabi Bank announced its financial results for the first quarter ending on March 31, 2022, as the group achieved strong results, as net profits amounted to 5.1 billion dirhams, compared to 2.5 billion dirhams during the first quarter of 2021, representing An increase of 107%, which represents the highest annual net profit in the Bank’s history.
The group achieved strong growth as a result of the increase in net interest income, the increase in fees and commissions, in addition to the positive contribution of Bank Audi’s business, which contributed to offsetting the declines in revenues from business and investment.”
Operational costs increased compared to the same period in 2021, as a result of continued investments in digital and strategic initiatives, and the business of Bank Audi Egypt. The group also maintained excellent rates of asset quality, liquidity, financing and capital.
According to the financial results for the first quarter of 2022, the basic earnings per share amounted to 1.84 dirhams, an increase of 113% compared to the first quarter of 2021.
Total revenues amounted to 7.3 billion dirhams, including a net gain of 2.8 billion dirhams as a result of selling a stake in the payments company “Magnati”.
Operating revenues amounted to 4.5 billion dirhams, an increase of 2% compared to the same period last year, and an increase of 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.
Loans, advances and Islamic financing amounted to 434 billion dirhams, an increase of 6% since the beginning of 2022, and an increase of 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. The deposit mix improved as a result of the increase in current and savings accounts deposits to reach 22 billion dirhams compared to the last quarter of 2021. With an increase of 52% of total customer deposits, 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 ratio of equity – tier one amounted to 13.0%, which is higher than the regulatory requirements, which reflects the strength of the group’s capital.
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 5.1 billion dirhams 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 deliver the best sustainable value to 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” company, 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, 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.”
She continued: “We have moved forward in our ambitious path of environmental, social and corporate governance, as the group has reached new milestones that included strengthening the concepts of environmental, social and corporate governance in our various businesses in conjunction with our strategic goals and our commitment to achieving net zero carbon emissions by 2050. The Bank has also once once more consolidated our position Leading the green bond markets by issuing the first public green bond for 2022, in addition to the first green bond of its kind in the Middle East and North Africa region in the euro markets.
In turn, James Burdett, Group Chief Financial Officer, First Abu Dhabi Bank, said: “The group achieved a net profit of 5.1 billion dirhams during the first quarter of 2022, compared to 2.5 billion dirhams in the same period in 2021.
These results included a net gain of 2.8 billion dirhams from the sale of a 60% stake in the Magnati business, in line with the group’s strategy to benefit from long-term partnerships, to achieve the best value.”
He continued, “The group achieved good operational performance, as it recorded an increase in various business sectors, 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 first quarter, and lending margins improved. The deposit mix improved; As current and savings account deposits increased to add 22 billion dirhams compared to the last quarter of 2021, which represents 52% of total customer deposits. The increased interest rates will also contribute to achieving higher returns until the end of this year.”
He added that the group maintained its significant ability to grow fees to reflect the strength of the implementation of business initiatives, in addition to the increase in customer activities in the global markets business, which contributed in part to offsetting the decline in trading and investment revenues. The Retail Banking Group also maintained sales momentum across various major product categories in an indication of rising consumer confidence.
He pointed out that: “The group continued to invest in human competencies, products, operational processes and digital technologies to continue achieving efficiency and enhancing productivity. It also maintained an outstanding rate of coverage of non-performing loans, which amounted to 98%, while continuing to be conservative in risk management.”
He said, “The group maintained a strong balance sheet, liquidity coverage ratio and financing, as the equity ratio – Tier 1 reached 13.0% at the end of March 2022. We rely on our strong foundations and our long-term strategy to provide the best banking services to our customers throughout our business network in conjunction with continuing to provide The best returns for our shareholders.
