First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates, has reported a remarkable performance for the third quarter of 2024. The bank posted a net profit of $1.2 billion, exceeding analysts’ expectations and reflecting a robust 38% year-on-year growth. This surge is attributed to a diversified revenue mix and strong growth across its core banking operations and investment banking division.
FAB’s positive performance in Q3 was largely driven by non-interest income, which saw significant gains due to enhanced investment banking activities, asset management, and trading operations. The uptick in non-interest income, alongside sustained growth in its lending portfolio, helped the bank maintain strong momentum despite macroeconomic challenges.
During this period, FAB also benefited from its strategic focus on cost management and digital transformation, which contributed to greater operational efficiency. The bank’s cost-to-income ratio remained stable, reflecting careful cost control measures that further strengthened its profit margins.
FAB’s credit quality remained solid, with its provisions for loan losses falling in line with expectations. This came as the broader UAE economy continued to stabilize, allowing banks to gradually reduce provisions that had spiked during periods of uncertainty in earlier years.
Analysts had predicted a profit of around $1.1 billion, but the bank’s performance, buoyed by a favorable market environment, surpassed these forecasts. FAB continues to leverage its position as a dominant player in the UAE banking sector, with a solid balance sheet and ample liquidity. The bank’s strong capital adequacy ratio remains a key factor in maintaining its growth trajectory.
With the UAE’s non-oil economy recovering steadily, FAB has benefited from increased business confidence, particularly in sectors such as real estate, construction, and trade. As the global economic outlook shows signs of stabilization, the bank is expected to continue its growth, especially in the investment banking and corporate finance sectors.
