UAE mega bank FAB to issue 75 fils a share as 2024 dividend after solid profits

Dubai: A solid 15% revenue growth delivered a Dh19.9 billion profit before tax for the UAE’s biggest bank FAB. The Abu Dhabi bank plans to offer 75 fils a share as 2024 payout.

This represents a 'total dividend payout of Dh8.3 billion," said Sheikh Tahnoon Bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi, National Security Adviser and Chairman of FAB. "FAB delivered strong results last year, supported by record business volumes, successful diversification and innovation."

How did FAB revenues fares?

For full-year 2024, FAB’s total income came to Dh31.62 billion, from a 14% increase against 2023’s Dh27.75 billion.

Net profit totaled just over Dh17 billion compared to Dh16.4 billion.

“Our strategy produced robust results in the UAE, our thriving home market and the foundation of our growth, while powering the expansion of our international franchise, as we diversified growth across customer segments and sources of income and grew international revenue by 32%,” said Hana Al Rostamani, Group CEO.

The non-UAE income growth will be particularly pleasing for FAB. The international franchises contributed 23% to group revenue last year, up from 20% in 2023 and 2021's 18%.

Margins, impairment charges

Net impairment charges for the year came to Dh3.92 billion, from Dh3.07 billion a year ago. In a year when higher interest rates prevailed for the better part, FAB’s net interest income was Dh19.61 billion, an increase of 8& year-on-year. The non-interest income provided another Dh12 billion.

Non-performing loans were Dh18.5 billion by end 2024, implying an NPL ratio of 3.4%, which is down from 3.9% the prior year. "This highlights prudent risk management and the bank’s proactive approach to optimizing the balance sheet, helped by the successful completion of the sale of a portfolio of no-nperforming loans in the last quarter," said a statement.

5-year high

That helped raise net interest margin (NIM) by 13 basis points year-on-year to 1.93% - and which ended up as a 5-year high.

"Our solid balance sheet fundamentals, resilient NIM profile and diversified business model position us well to continue to deliver profitable growth and achieve our return target," said Lars Kramer, FAB's CFO.

Key FAB numbers from 2024

• Total assets grew 4% year-on-year to Dh1.21 trillion (USD 330 billion), driven by a broad-based franchise growth.

• Loans, advances and Islamic financing (net) were up 9% to Dh529 billion ;reflecting healthy origination across key segments and economic sectors’.