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Abu Dhabi 24-10-2019
First Abu Dhabi Bank’s net profit for the first nine months of the year was AED 9.4 billion, up 4% compared to the same period last year, while the Group’s third quarter net profit was AED 3.1 billion, up 3% compared to the same period last year 5% operating income in accordance with the Group’s financial results today.
The Group’s revenues for the first nine months of 2019 were AED 15.2 billion, an increase of 4% compared to the same period last year, while the cost-to-income ratio excluding merger costs remained at market leading levels of 26.5%. 49 basis points compared to 51 basis points for the first nine months of 2018.
The balance sheet growth reflects the continued strong performance of the Bank’s business and continued risk management with total assets amounting to AED 788 billion, an increase of 6% compared to the same period last year, while risk-weighted assets increased slightly by 1% during the same period while loans and advances amounted to 378 AED 2 billion, an increase of 3% compared to the second quarter, and an increase of 7% compared to the end of December 2018 due to lending to the public and public sectors.
The Group achieved stable asset quality with a NPL ratio of 3.1%, provision coverage ratio of 109% and customer deposits of AED 477 billion, up 3% from the second quarter and an increase of 2% from the end of December 2018.
The Group maintained good liquidity ratios and diversified funding sources.The liquidity coverage ratio was 146% at the end of September 2019 while the equity ratio – Tier 1 increased by 14.2%, compared to 13.6% at the end of June 2019 and the end of September 2018. Annual tangible equity increased by 16.7% compared to the same period last year and risk-weighted assets increased by 2.55% compared to the same period last year.
Abdulhamid Saeed, Chief Executive Officer of First Abu Dhabi Bank, said that the outstanding performance achieved by First Abu Dhabi Bank during the third quarter of 2019 reinforced its leading position in the banking sector in the country and its growth strategy to continue to unlock its full potential.
“ The Group’s net profit for the first nine months of 2019 was AED 9.4 billion, up by 4% compared to the same period last year, thanks to the growth of both corporate and retail banking, as we continue to capitalize on our competitive strengths across our business network. In line with the successive changes in the banking sector in the field of digital services and products, we have made further investments in this area in order to place our customers at the top of our list of priorities and to enhance our banking position and services.
“First Abu Dhabi Bank has continued to strengthen its leading position and strong relationship with the Government of Abu Dhabi to support national social and economic development programs and initiatives by continuing to support the Abu Dhabi Accelerated Development Plan tomorrow.”
“At the international level, we continue to implement our strategy in target markets as planned, including Saudi Arabia, where we serve our growing customer base there, and we are also in the process of opening another branch in the Kingdom soon.”
“We are launching the fourth quarter of this year with a strong balance sheet, high levels of liquidity and capital and stability in asset quality and returns,” he said.
First Abu Dhabi Bank’s total assets stood at AED 788 billion as of the end of September 2019.It also has Aa3, AA- and AA- ratings from Moody’s, Standard & Poor’s and Fitch, respectively, making it the strongest aggregate rating for banks in the MENA region. First Abu Dhabi Bank has been ranked the safest bank in the UAE and the Middle East by Global Finance Magazine. First Abu Dhabi Bank ranked as the second largest bank in the Middle East in terms of the strength of ‘Capital – Tier 1’ in the 2019 Banker rating With the 1000 most powerful banks in the world.
