The Finance World Magazine| Edition: March 2023

UAE Banking
First Abu Dhabi Bank declares a Group
Net Profit of AED 13.4 billion
The profitability of the UAE banking sector witnessed a substantial enhancement
due to the upward trend in interest rates, driven by the growth in margins
and net interest income. Despite the robust loan growth observed this year, it
is projected to decelerate in 2023 as the pace of GDP growth decreases. The
favourable impact of higher oil prices on deposit inflows is anticipated to persist,
as liquidity conditions remain robust and abundant.
First Abu Dhabi Bank has
recently announced a Group
Net Profit of AED 13.4B for
the fiscal year 2022. The
announced net profit was up 7% year
on year, with earnings per share of
AED 1.18. Net profit in Q4’22 was AED
2.5B, down from AED 2.9 billion in
Q3’22, due to judicious provisioning
and conservative asset assessments.
Total income was AED 23.9B, up 10%
year on year, led by a 23% increase in
net interest income and a gain on the
sale of the majority stake in Magnati;
increased regional revenue diversity,
with a bigger contribution from MENA,
according to FAB’s press release.
Operating costs were AED 6.7B, up
15% year on year, due to the integration
of operations in Egypt (FABMisr), the
write-off of legacy systems in Q4’22 as
part of FAB’s continuous technological
transformation plan, and sustained
business investments.
The released report states that
the Group’s foundation is still solid
across all important parameters; in
10 www.thefinanceworld.com March 2023