Dubai: The UAE’s biggest bank, FAB, recorded Dh10.95 billion as profit for the first nine months of 2022, against Dh9.21 billion a year ago. Specific to the third quarter, profit tally was at Dh2.92 billion from Dh3.85 billion.
But when seen on a quarter-on-quarter basis, the Dh2.92 billion in the third quarter is up 12 per cent, ‘bringing bottom line for the nine-month period to a record Dh10.9 billion’.
Overall income for the first nine months weighed in at the Dh18 billion mark, and that's up 13 per cent year-on-year. This was also boosted by the one-off Dh3.1 billion net gain from the stake sale in the payments processing entity Magnati.
“The increasingly challenging global backdrop calls for caution, with recessionary risks looming over several economies,” said Hana Al Rostamani, Group CEO.
As we navigate these headwinds, we are nevertheless confident in the resilience of this region, and we remain very well placed to deliver market-leading shareholder returns while being an engine for the region’s economic growth and diversification.
The FAB numbers were driven by:
• Loans, advances and Islamic financing at Dh465 billion, up 2 per cent sequentially and 14 per cent year-to-date;
• Customer deposits at Dh746 Billion, up 15 per cent sequentially and 21 per cent year-to-date with CASA balances increasing further to Dh300 billion ( up 3 per cent quarter-on-quarter and 4 per cent ytd);
• Impairment charges were at Dh1.7 billion, 11 per cent lower y-o-y, which implies an annualised cost of risk at 52 basis points and improving from 65 bps in the prior period;
"Our robust balance-sheet fundamentals are enabling us to pursue our growth and transformation journey both regionally and in the UAE," said Hana. "In Egypt, we have completed our integration activities which will enable us to unlock new opportunities for our growing base in one of our priority markets.
"Looking ahead, the increasingly challenging global backdrop calls for caution, with recessionary risks looming over several economies."
During the period, our strategic initiatives led to continued growth in CASA balances with nearly Dh100 billion customer deposit inflows underlining our unique role as an aggregator of liquidity. Group liquidity position strengthened with Group LCR at 171%, while Group CET1 improved sequentially to 13.1%, owing to strong capital generation and the positive outcome of our ongoing efforts to optimise risk-weighted assets.
- James Burdett, Group CFO. (FAB announced Wednesday that Burdett is retiring.)