- First Abu Dhabi Bank (FAB) posted a Q3 2024 net profit of AED 4.46 billion ($1.2 billion), 5% higher than the same period last year.
- Impairment charges increased by 50% YoY to AED 909 million, while operating expenses rose 9% to AED 1.98 billion.
- Net interest margin (NIM) stood at 1.89%, slightly lower than the previous quarter due to factors such as higher cash reserve requirements and a 50 bps benchmark rate cut.
- FAB’s total assets grew by 5% year-to-date, reaching AED 1.2 trillion, with a nine-month net profit of AED 12.9 billion, up 4% YoY.
First Abu Dhabi Bank (FAB), the UAE’s largest lender, reported a notable net profit of AED 4.46 billion ($1.2 billion) for Q3 2024. This marks a 5% increase compared to the same period last year, driven by strong revenue growth despite a significant rise in impairment charges. The profit figure surpassed analysts’ expectations, which were estimated at AED 4.06 billion, based on LSEG data.
FAB’s operating income reached AED 8.20 billion for the quarter, reflecting an 18% increase from the previous year. However, impairment charges saw a 50% year-on-year rise to AED 909 million, and operating expenses increased by 9% year-on-year to AED 1.98 billion.
The bank’s net interest margin (NIM), a key indicator of profitability, stood at 1.89% for the quarter. This represents a decrease of 7 basis points (bps) compared to the previous quarter and 8 bps lower year-on-year. The drop in NIM was attributed to higher cash reserve requirements, increased placements with central banks, and the impact of a 50 bps benchmark rate cut during the period.
For the first nine months of 2024, FAB posted a net profit of AED 12.9 billion, representing a 4% increase from the previous year. Total assets also grew, reaching AED 1.2 trillion, up 5% year-to-date and 4% year-on-year.
FAB’s strong financial performance in Q3, particularly in revenue growth, highlights its resilience despite the challenges posed by rising impairment charges and lower profitability margins.
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