First Abu Dhabi Bank (FAB) has reported a record half year net profit of Dh6.3 billion ($1.7 billion), up 4 per cent year-on-year, driven by revenue growth, coupled with continued cost control and prudent risk management.
According to its financial results for the first half ended 30 June 2019, FAB delivered a solid financial performance in the first half of 2019, reported Emirates news agency Wam.
The H1 financial results, which was released on Wednesday, showed that Q2 net profit was Dh3.2 billion, up 4 per cent sequentially and 5 per cent year-on-year while Annualised Earnings per Share (EPS) was at Dh1.12, compared to Dh1.08 in H1 of 2018.
H1 group revenue up 3 per cent year-on-year, crosses the Dh10 billion mark Business momentum continues, underpinned by a strong liquidity position, robust capitalisation with loans and advances reaching Dh366 billion, up 6 per cent year-on-year.
Customer deposits reached Dh462 billion, up 7 per cent year-on-year. Strong liquidity position with June-end 2019 Liquidity Coverage Ratio, LCR, at 137 per cent, and over Dh12 billion of term funding raised in the first half of 2019 at a competitive pricing. The bank saw strong capital generation with Basel III Common Equity Tier-1 (CET1) ratio of 13.6 per cent.
Abdulhamid Saeed, Group chief executive officer of FAB, said: "I am pleased to report that FAB delivered a record financial performance in the first six months of 2019, as it continues to unlock its full potential as a leading banking franchise.”
“Despite challenging market conditions, the Group achieved year-on year growth in assets, revenue and net profit, while maintaining a strong balance sheet and showing improved asset quality, liquidity and capital ratios.
“Our risk-adjusted returns have also improved, in line with our commitment to enhance profitability across core businesses and targeted markets.' The recent reaffirmation of our AA- credit rating by Standard and Poor’s is a strong testament of FAB’s robust credit profile and competitive strengths.
"Looking ahead and despite a softer global outlook, we are confident in our ability to continue to leverage our leading franchise, diversified business model, and strong execution capabilities to deliver sustainable growth and maximise shareholder returns," he added.
In light of the ever-changing global economic landscape, and the benefits of foreign capital flows to support prosperous economies, such as the United Arab Emirates, he said, FAB’s Board of Directors discussed the bank’s Foreign Ownership Limit in their meeting.
As part of efforts to support the UAE in attracting capital, foreign investments and in promoting economic growth, the board has proposed to remove FAB’s foreign ownership limit cap, with the potential that other public companies in the UAE may apply similar measures. This will support the country’s leadership in positioning the UAE amongst one of the most attractive economies for foreign direct investments.
The changes proposed would be subject to the supervision of regulatory authorities and would require amendments to the current laws and policies.