FAB records Dhs12.4 billion net profit for first 9 months of 2023

First Abu Dhabi Bank (FAB) has achieved record performance in the first nine months of 2023, reporting that net profit for the period reached Dhs12.4 billion, up 58% year-on-year on an underlying basis (excluding Magnati-related gains in 2022).

Revenue was Dhs20.5 billion, up 38% year-on-year, reflecting the successful and sustained execution of the bank’s growth strategy.

FAB announced that the return on tangible equity improved to 18.3% and that the net profit for the third quarter of 2023 increased by 46% to Dhs4.3 billion, the highest ever on an underlying basis, with revenue up 27% to Dhs7.0 billion.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said, “In the third quarter of 2023, we achieved solid results contributing to a record net profit of Dhs12.4 billion for the first nine months of 2023. In addition, group revenue exceeded Dhs20 billion. FAB’s reaffirmed superior credit ratings of AA- (or equivalent), our international and diversified franchise, our financial strength and ample liquidity, are among the distinct competitive strengths that position us well to continue our steady progress towards our strategic goals.

With climate finance being a critical factor in climate progress, FAB is making strides on multiple fronts, including supporting energy transition and providing green financing, in addition to minimising its footprint and spearheading change across the region. FAB was the first GCC bank to join the industry-led UN-convened Net Zero Banking Alliance (NZBA).

As a leading voice in the regional financial sector relating to sustainability, we are fully aligned with the ambitions of Abu Dhabi and the UAE to deliver a sustainable future for all. This is underscored in our strategic pathway partnership with COP28 as well as in our commitment to net-zero emissions by 2050.

“As the markets strengthen their trade flows and form broader economic partnerships across the globe, FAB’s international franchise ensures that we continue to play our unique role as a facilitator of global trade and investment”.

Lars Kramer, Group Chief Financial Officer at FAB, said, “FAB produced another strong set of results in the third quarter of 2023, delivering double-digit growth in revenue and bottom line and building on the core growth momentum achieved since the start of the year. Return on Tangible Equity for the first nine months of 2023 improved to 18.3%, with Group CET1 reaching 14.2% as of September 2023, underlining strong capital accretion.

Operating income grew 38% year-on-year from continued expansion in net interest income coupled with growth from diversified revenue streams, demonstrating our ongoing strategic focus on deepening client relationships across our global franchise.

In addition to that, FAB aims to facilitate US$75 billion of sustainable finance projects by 2030 and has already funded more than US$18 billion in 9M’23 and US$27 billion to-date from the 2022 baseline. Green finance and sustainable finance are growth markets, and the upcoming COP28 forum will showcase our leadership in this area and accelerate our reach and capacity.

FAB’s growth was driven by its diversified franchise and business model. Total assets were approximately AED1.2 trillion as the bank continued to power cross-border trade, economic growth, and the transition to a low-carbon future across its global network.

Non-interest income grew 46% in 9M’23, contributing 35% to Group revenue, while international operations grew 31% year-on-year to contribute 19% to total Group revenue, reflecting the UAE’s position at the nexus of global trade and investments.

Empower’s Dhs425m dividend: Emirates Central Cooling Systems Corporation (Empower), the world’s largest district cooling services provider, which is listed on the Dubai Financial Market (DFM), has announced the Board of Directors’ decision to distribute cash dividends of Dhs425 million (at Dhs0.0425 per share, representing 42.5% of the company’s paid-up capital) to its shareholders for the period ending on June 30, 2023.

This distribution marks the fulfillment of Empower’s commitment to pay dividends to shareholders twice a year, with a cumulative value of Dhs850 million per annum during the first two fiscal years following its listing on Dubai Financial Market. In April 2023, the company distributed Dhs425 million in dividends for the second half of 2022. This is now followed by another distribution of Dhs425 million for the first half of the current year 2023, with payment made in October 2023.

The decision of Empower’s Board of Directors aligns with the dividend distribution policy outlined in the prospectus for the company’s public offering of shares, which was announced on October 24, 2022. The company also plans to continue distributing dividends for the period spanning the second half of 2023 and the first half of 2024, which shall be paid during the year 2024.

“The dividends are a testament to Empower’s unwavering commitment to deliver on the promises it made to its valued investors and shareholders. These promises center on maintaining a sustainable operational and financial performance that not only benefits our stakeholders but also contributes to the growth of Dubai’s economy, its residents, and its diverse economic sectors,” stated H.E. Ahmad bin Shafar, CEO of Empower.