Dubai: UAE’s biggest bank FAB closed 2022 with a staggering net profit of Dh13.4 billion, and for which the management has proposed a 52 per cent dividend (which is 52 fils a share.) The latest profit tally represents a 7 per cent gain on 2021, and comes as FAB leverages its strong domestic operations and widens the international reach.
Total income for 2022 came to Dh23.9 Billion, and that's 10 per cent higher than the previous year, brought on by a 23 per cent growth in net interest income and gains made from the sale of a majority stake in the payments processing platform Magnati. There was also 'enhanced' revenue gains geographically with 'greater contribution from MENA'.
The bank will hold the annual general assembly on February 28.
Impairment charges (net) came to Dh2.8 billion, which is higher by 7 per cent year-on-year. The bank says this is indicative of prudent provisioning with a Dh1.1 billion charge taken in Q4-22. "The year’s achievements emphasise FAB’s continuing role as an engine for the region’s economic prosperity, acting as an enabler to unlock new opportunities for clients and stakeholders across our franchise," said Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman.
In achieving the Group’s highest annual revenue and net profit to-date, FAB has strengthened its strategic position to build a future-proof bank, and to advance the interests of our customers, community, and all our stakeholders.
Holding up in Q4-2022
In the final quarter of 2022, net profit dipped to Dh2.5 billion from the third quarter's Dh2.9 billion, brought on by 'prudent provisioning and conservative asset valuations'. "Underlying operating performance across our core businesses was sustained during the fourth quarter despite a more challenging global macroeconomic outlook," said Hana Al Rostamani, Group CEO at FAB. "This has provided us headroom to further build provision buffers, take a conservative stance on asset valuations, and to continue to invest in our technology platform.
"As the UAE enters the' Year of Sustainability', we continued to play a crucial role in helping to deliver the region’s sustainable finance agenda, with FAB facilitating over $9 billion worth of sustainable projects."
We remain confident in the resilience of this region and are very well placed to capitalise on the opportunities to drive superior and sustainable shareholder returns in 2023 and beyond.
Previously, he was Group CFO at Hellenic Bank, and for almost 20 years worked with ING, where he was CFO for ING Direct, ING Retail Banking Direct and International, and ING Commercial Bank. He holds a Bachelor of Science in Accounting from the University of South Africa and a Master of Business Administration (MBA) from the University of Cape Town.