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The First Abu Dhabi Bank Group achieved a net profit of 13.4 billion dirhams for the year 2022, an increase of 7% compared to 2021. The bank’s board of directors recommended a cash dividend of 52 fils per share, compared to 49 fils per share in 2021, subject to the approval of shareholders at the general assembly meeting scheduled to be held in February 28, 2023. The total dividend distribution amounts to 5.7 billion dirhams for the fiscal year 2022.
The group achieved record profits, supported by the strong performance of the bank’s core business and high interest rates, with the continued thoughtful management of risks and controlling costs in conjunction with the continuation of investments.
Earnings per share amounted to 1.18 dirhams, and the total assets of the bank amounted to more than 1.1 trillion dirhams ($302 billion) as of the end of December 2022.
The group’s net profit during the last quarter amounted to 2.5 billion dirhams, compared to 2.9 billion dirhams in the third quarter, reflecting conservative provisions and valuations.
Total revenues amounted to 23.9 billion dirhams, an increase of 10% compared to the same period in 2021, as a result of an increase in net interest revenues by 23% and the gains resulting from the sale of a stake in the payments company “Magnatti”.
Operational costs amounted to 6.7 billion dirhams, an increase of 15% as a result of the merger of operational operations in Egypt. During the last quarter of 2022, some technical systems that were discontinued were written off as part of the continuous strategy for technological transformation, in addition to continuing investments.
In addition, net impairment provisions amounted to 2.8 billion dirhams, an increase of 7% compared to 2021, which reflects the studied provisions, which amounted to 1.1 billion dirhams in the last quarter of 2022; The annual risk cost amounted to 62 basis points during the fiscal year 2022, compared to 65 basis points for the year 2021.
Loans and advances
While loans, advances and Islamic financing amounted to 460 billion dirhams, an increase of 12%, outperforming the total banking sector average of 5.5%, customer deposits amounted to 701 billion dirhams, an increase of 14%, and current and savings account deposits increased by 3% compared to 2021.
The liquidity coverage rate reached 154%, which reflects the high liquidity rates and diversified financing sources. The non-performing loans rate reached 3.9%, while the provision coverage rate reached 98%.
The equity ratio – Tier 1 achieved 12.6% (after accounting for net dividends), an increase of 19 basis points compared to 2021, as a result of the bank’s ability to continuously enhance capital, and its continued initiatives to control risk-weighted assets.
