The First Abu Dhabi Bank announced record financial results in the first quarter of 2022, as the group achieved a net profit of 5.1 billion dirhams, compared to 2.5 billion dirhams in the first quarter of 2021, which represents an increase of 107%. These results included a net gain of 2.8 billion dirhams as a result of selling a stake in the payments company “Magnati”. 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 commercial and investment businesses. 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.
The total assets of First Abu Dhabi Bank amounted to more than 981 billion dirhams (267 billion dollars) as of the end of March 2022.
Loans, advances and Islamic financing amounted to 434 billion dirhams, an increase of 6% since the beginning of the year, and 15% compared to the first quarter of 2021, while customer deposits amounted to 600 billion dirhams, an increase of 6% on an annual basis, and a decrease of 2% since the beginning of 2022, and the improvement of the deposit mix as a result of The increase in current and savings accounts deposits to reach 22 billion dirhams compared to the last quarter of 2021, an increase of 52% of the total customer deposits.
- 15% growth of loans, advances and Islamic financing to 434 billion
- An increase in current and savings accounts deposits of 22 billion dirhams
- 7.3 billion dirhams, total revenues and “operating” 4.5 billion dirhams
- 2.8 billion dirhams, net gains as a result of selling a stake in “Magnati”
The group maintained strong liquidity ratios, as the liquidity coverage rate reached 120%, and the asset quality ratios were good, as the non-performing loans ratio reached 3.8%, while the provisions coverage ratio reached 98%.
The equity ratio – Tier 1 amounted to 13.0%, which is higher than the regulatory requirements, which reflects the strength of the Group’s capital.
Basic earnings per share amounted to 1.84 dirhams, an increase of 113% compared to the first quarter of 2021.
In terms of revenues, total revenues amounted to 7.3 billion dirhams, including net gains of 2.8 billion dirhams as a result of selling a stake in the payments company “Magnati”. Also, 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.
In addition, provisions for impairment amounted to 457 million dirhams, compared to 470 million dirhams during the first quarter of 2021, and operating costs amounted to 1.5 billion dirhams, which reflects the continued investments in the bank’s digital and strategic initiatives.
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, while we continue to achieve Remarkable progress 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, existing business growth and improved consumer confidence. 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 digital services sector in the region.” .
Al Rostamani said: “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.
And she concluded by saying: “Looking forward to the future in light of the current uncertainty around the world, we will continue to support the UAE’s march towards growth, and we are fully confident in our ability to continue progress and achieve the best value for our customers, shareholders and employees, and continue working to promote meaningful growth in the markets.” and the communities in which we operate.
Business Initiatives
For his part, James Burdett, Group Chief Financial Officer of First Abu Dhabi Bank, said: “The group achieved good operational performance, as the group recorded an increase in various business sectors, especially at the end of the first quarter of 2022; The group’s lending rates increased by 6% from the beginning of the year to the end of the first quarter, and lending margins improved. The deposit mix improved; Whereas, current and savings accounts 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: “The group maintained its significant ability to grow fees to reflect the robust implementation of business initiatives, in addition to the increased activities of clients in the global markets business, which contributed in part to offsetting the decline in trading and investment revenues. The Retail Banking Group also maintained its sales momentum across various major product categories, in an indication of rising consumer confidence.”