5.1 billion dirhams, “First Abu Dhabi” profit in first quarter, 107% growth

The First Abu Dhabi Bank announced its financial results for the first quarter ending 31 March 2022, as the group achieved strong results, as net profit amounted to 5.1 billion dirhams, compared to 2.5 billion dirhams during the first quarter of 2021, which represents an increase of 107%, which represents The highest annual net profit in the bank’s history.

The group achieved strong growth due to 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 income from business and investment. ”

Operating costs increased compared to the same period in 2021, due to sustained investments in digital and strategic initiatives, and the work of Bank Audi Egypt. The group also maintained outstanding rates of asset quality, liquidity, financing and capital.

high growth

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 revenue amounted to 7.3 billion dirhams, including net profit of 2.8 billion dirhams due to the sale of a stake in the payment company “Magnati”.

Operating income amounted to 4.5 billion dirhams, an increase of 2% compared to the same period last year, and by 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.

Impairment provisions amounted to 457 million dirhams, compared to 470 million dirhams in the first quarter of 2021. Operating expenses amounted to 1.5 billion dirhams, reflecting continued investment in digital and strategic initiatives.

Borrowings, 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 has improved due to the increase in current and savings account deposits to reach 22 billion dirham compared to the last quarter of 2021. With a 52% increase in total customer deposits, the group maintained strong liquidity ratios as the liquidity coverage rate reached 120%.

It also achieved good rates for the quality of assets, as the non-performing loan ratio reached 3.8%, while the coverage ratio of provisions was 98%, and the equity ratio – Level One reached 13.0%, which is higher as the regulatory requirements. , which reflects the strength of the group’s capital.

Highest quarterly earnings

Hana Al Rostamani, Group CEO of First Abu Dhabi Bank, said: “I am pleased to announce that First Abu Dhabi Bank made a net profit of AED 5.1 billion during the first three months of 2022, which 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 provide the best sustainable value for our shareholders, customers and employees. ”

“Our core business has performed well during this period of growth in economic activity in the UAE, and has benefited from the momentum of work going on, growth in existing business and improved consumer confidence.”

She said the group’s financial results during the first quarter of this year include gains from the sale of the majority stake in “Magnati Payments”, reflecting the importance of the payment business in paving the way for long-term growth in partnership with a strategic partner. , as it has digitally consolidated our leading position in the payments and services sector in the region.

Egyptian market

Al Rostamani added: “Internationally, the Egyptian market will remain the focus of our future interests, while we are still merging our business with Bank Audi Egypt, which is scheduled to be completed within the next few months; We also continued to strengthen our presence in new targeted markets as we started our business in our Shanghai branch in March, and opened a representative office in Iraq, to ​​be a strategic addition to our geographic presence, at a time when the UAE is still considered one of Iraq’s most important trading partners.

She continued: “We have moved forward on our ambitious ESG journey; The group has reached new milestones that include improving the concepts of environmental, social and institutional governance in several of our businesses in line with our strategic goals and our commitment to achieve net zero carbon emissions by 2050, and the Bank has also once again our leading position in the green bond markets by issuing the first public green bonds for 2022, in addition to the first green bonds of its kind in the Middle East and North Africa in the Euro markets. ”

good performance

In turn, James Burdett, chief financial officer of First Abu Dhabi Bank Group, said: “The group made 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, and these results included net gains of 2.8 billion dirhams. As a result of the sale of a 60% stake in the Magnati business, in line with the group’s strategy of benefiting from long-term partnerships, to achieve the best value. “

He continued: “The group has achieved good operational performance as it has recorded an increase in its various business sectors, especially at the end of the first quarter of 2022; As the group’s lending rates increased by 6% from the beginning of the year to the end of the first quarter, lending margins improved, and the deposit mix improved; As deposits in current and savings accounts increased to add 22 billion dirhams compared to the last quarter of 2021, representing 52% of total customer deposits, and the increased interest rates will contribute to achieving higher returns by the end of this year.

great abilities

He added: The group has retained its significant ability to grow fees to reflect the strength of implementing business initiatives, in addition to increasing customer activity in the global business markets, which partially offset the decline in trading and investment income . product categories are an indication of rising consumer confidence.

He pointed out that the group continued to invest in human skills, products, business processes and digital technologies to continue to achieve efficiency and improve productivity, and maintained an outstanding rate of coverage on non-performing loans, which amounted to 98%, while continuing to be conservative in risk management.

He said: “The group has maintained a strong balance sheet, liquidity coverage ratio and funding. The equity ratio – Level 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 clients across our business network, while continuing to deliver the best returns for our shareholders. ”

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