10.9 billion dirhams, net profit of “First Abu Dhabi” in 9 months

First Abu Dhabi Bank Group announced net profit of AED 10.9 billion during the first nine months of 2022, an increase of 19% over the same period last year, and basic earnings per share were of 1.29 dirham.

Total revenues were Dh 18 billion during the first nine months of questyear, with an increase of 13% compared to the same period of the previous year, following an increase in the interest margin of 18%.

Total revenues for the first nine months included a net gain of 3.1 billion dirhams following the sale of a stake in the payment company “Magnati” and provisions for impairment of 1.7 billion dirhams, with a decrease in the 11% compared to the same period last year, where the annual cost of risk was 52 basis points compared to 65 basis points in the previous period, while operating costs were 4.7 billion dirhams, in 6% increase over the same period of the previous year, with the exception of Bank Audi Egypt operations, reflecting the continuation of investments in strategic initiatives to advance the growth and transformation process, according to the Emirates news agency.

Hana Al Rostamani, Group CEO of First Abu Dhabi Bank, said the group has maintained a solid balance sheet, which has allowed us to continue to focus on the growth and development process of our business. in best in the UAE and the region. In Egypt, the bank has completed the merger process, which will allow us to provide new opportunities for business to the growing customer base in this market, which is an important priority in the group’s business strategy.

For his part, James Burdett, Group Chief Financial Officer of First Abu Dhabi Bank, said the operational performance of the group’s core operations remained solid, as revenues for the third quarter of 2022 increased by 10% compared to the second quarter. following the positive momentum of the core business and increased sales to customers in global interest rate markets, while benefiting from changes resulting from multiple cycles of interest rate hikes.

During this time, and through our focus on strategic initiatives, he added; Deposits in current and savings accounts grew as a result of customer deposits, which amounted to almost 100 billion dirhams, which led to an increase in liquidity rates. Where the liquidity coverage rate reached 171%. The equity ratio – Tier 1 rose to 13.1% compared to the second quarter, due to the high capacity to generate capital and the positive results of the efforts to improve risk-weighted assets.

In terms of indicators of performance in the third quarter of 2022, the group’s net profit was 2.9 billion dirhams, in increase of 12% compared to the second quarter of 2022, excluding the earnings recorded in the second quarter from the sale of a stake in the payment company “Magnati”.

Operating revenues amounted to AED 5.5 billion, in growth of 10% compared to the second quarter, due to the increase in interest income and not, while provisions for write-downs amounted to 694 million dirhams, a decrease of 13% compared to the same period last year , with an increase of 19% compared to the previous quarter, while maintaining high rates to cover impaired loans.

While operating costs amounted to 1.6 billion dirhams, an increase of 1% compared to the previous quarter and 1% compared to the same period last year.
The balance sheet continued to grow thanks to the momentum of loans and increased flows of customer deposits, while maintaining the solid foundation of the various key indicators of performanceIslamic loans and advances and financing amounted to AED 465 billion, a 2% increase from the previous quarter, and a 14% increase from the beginning of 2022.

Customer deposits totaled 746 billion dirhams, an increase of 15% compared to the last quarter, and 21% since the beginning of 2022, while deposits in current and savings accounts totaled 300 billion dirhams. , with a 3% increase compared to the last quarter and a 4% increase since the beginning of the year 2022.

The group maintained strong liquidity ratios, in when the liquidity coverage rate reached 171%, and the group achieved good asset quality rates, in when the ratio of impaired loans reached 3.4%, while the coverage ratio of provisions reached 103% and the equity ratio – the first level recorded an increase of 48 basis points to 13.1. third quarter, due to the continuous control initiatives of asset risk weighted and the Bank’s ability to continuously increase capital.

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