First Abu Dhabi Bank (FAB) Q3 2024 earnings summary

Executive summary

• Net profit for 9M'24 reached AED 12.9Bn, up 4% year-over-year, driven by strong business momentum and diversified revenue growth.

• Operating income rose 16% year-over-year to AED 23.9Bn, supported by volume growth, margin expansion, and robust fee-generating businesses.

• Profit before tax rose 15% year-over-year to AED 15.3Bn, reflecting double-digit revenue growth and disciplined cost and risk management.

• Total assets increased 4% year-over-year to AED 1.2Tn as of 30 Sep 2024.

• The bank maintained a strong capital base and liquidity position throughout the period.

Financial highlights

• Net interest income for 9M'24 was AED 14.7Bn, up 9% year-over-year; non-interest income grew 30% to AED 9.2Bn.

• Net fee and commission income increased to AED 2.87Bn from AED 2.27Bn year-over-year.

• Operating expenses increased 11% year-over-year to AED 5.8Bn, reflecting ongoing investments in talent and technology.

• Net impairment charges rose 36% year-over-year to AED 2.8Bn, with provision coverage at 95%.

• Basic EPS for 9M'24 was AED 1.10, up from AED 1.07 year-over-year.

Outlook and guidance

• On track to meet FY’24 guidance, with ROTE at 17.1% versus a >16% medium-term target.

• Loan growth guidance for 2024 is mid to high single-digit; actual year-to-date loan growth is 9%.

• CET1 ratio guidance is >13.5%, with actual at 14.3% pre-dividend.

• Cost of risk guidance is 65-75bps; actual for 9M'24 is 72bps.

• Management expects adequate resources to continue as a going concern for the foreseeable future.