First Abu Dhabi Bank (FAB) Q4 2024 earnings summary

Executive summary

• FY'24 net profit reached AED 17.1Bn (+4% yoy), PBT AED 19.9Bn (+13% yoy), and revenue AED 31.6Bn (+15% yoy), all at record highs.

• Strong earnings momentum driven by diversified income, client activity, and operating efficiencies.

• All FY'24 financial guidance metrics met or exceeded; ROTE at 16.8%.

• Proposed cash DPS of 75 fils, total payout AED 8.3Bn (51% of net profit).

• Entering 2025 with robust balance sheet, CET1 ratio 13.7%, LCR 142%.

Financial highlights

• FY'24 operating income AED 31.6Bn (+15% yoy); net interest income AED 19.6Bn (+8% yoy); non-interest income AED 12.0Bn (+29% yoy).

• Q4'24 net profit AED 4.2Bn (+4% yoy); PBT AED 4.6Bn (+7% yoy).

• Operating expenses AED 7.8Bn (+9% yoy); cost-to-income ratio at 24.6%, lowest in group history.

• Loans and advances AED 529Bn (+9% yoy); customer deposits AED 782Bn (+3% yoy).

• NPL ratio improved to 3.4% (from 3.9%); provision coverage at 96%.

Outlook and guidance

• 2025 loan growth expected high single-digit; cost of risk <75bps; ROTE >16%; CET1 >13.5% (pre-dividend).

• UAE real GDP growth forecast at 5.6% for 2025; oil price c. USD 75/b; up to 2 rate cuts expected.