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FIRST POST-MERGER RESULTS

Abdulhamid Saeed ... pleased with integration

Abu Dhabi's FAB posts H1 profit of $1.49 billion

ABU DHABI, July 26, 2017

First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest financial institutions, has reported consolidated pro-forma financial results for the first time post-merger, delivering a resilient performance amidst softer economic conditions.

First half 2017 group net profit improved 4 per cent year-on-year to Dh5.49 billion ($1.49 billion), translating to annualised earnings per share of 97 fils.

FAB was formed following the merger of National Bank of Abu Dhabi (NBAD) and FGB.

Solid revenues at Dh9.85 billion and the realisation of substantial cost synergies post-merger, were key drivers behind this performance, the bank said.

Also, impairment charges were 8 per cent lower year-on-year on the back of higher recoveries and an adequately provisioned portfolio.

In the second quarter of 2017, the group generated a net profit of Dh2.56 billion down from Dh2.68 billion in the same period in 2016, primarily reflecting slower business momentum year-on-year.

As of June-end 2017, FAB displays a strong liquidity profile with loans-to-deposit ratio of 85 per cent and Liquidity Coverage Ratio (LCR) well above the glide path as defined by Basel III norms. Capital position has strengthened year-on-year thanks to continued focus on risk optimisation. With a CET1 ratio of 14.4 per cent, the group is well positioned to meet capital requirements as a Domestic Systemically Important Bank. Annualised returns for the first half of 2017 are solid with a return on tangible equity (RoTE) at 14.7 per cent.  

Abdulhamid Saeed, group chief executive officer of FAB, said: “I am pleased with the progress and execution of our integration plan at this early stage in our transformation journey. The consolidation of our businesses and operations, and the ongoing realisation of synergies are strong testaments to the benefits of this merger as we continue to create value for customers, employees, shareholders and communities, and empower them to grow stronger through differentiation, agility and innovation.
 
“FAB’s performance in the first half of 2017 demonstrates the group’s resilience during a period marked by softer economic conditions. We ended the period with a strong balance sheet, an industry leading cost-to-income ratio, as well as a robust liquidity profile and capital position - meaning we are well-placed to meet the evolving regulatory landscape.”
Key highlights
•    First Half 2017 group net profit at Dh5.49 billion, up 4 per cent year-on-year; annualised earnings per share at 97 fils;
•    Second quarter 2017 group net profit at Dh2.56 billion;
•    Group revenue at Dh9.85 billion, compared to Dh9.73 billion in the first half of 2016
•    Integration progress firmly on track with achievement of several key milestones and realisation of substantial cost synergies
•    Cost-to-income ratio (excluding integration costs) at industry-leading level of 27.4 per cent
•    Total assets at Dh625 billion; loans and advances at Dh321 billion; customer deposits at Dh377 billion
•    Group maintains strong liquidity position with loans-to-deposit ratio of 85 per cent and Liquidity Coverage Ratio (LCR) well above the glide path as defined by Basel III norms
•    Other key ratios: Net interest margin at 2.19 per cent, NPL ratio at 3.2 per cent, Provision coverage at 112 per cent
•    Annualised Return on Tangible Equity (RoTE) at 14.7 per cent. - TradeArabia News Service
 




Tags: abu dhabi | Bank | fab |

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