FAB achieves record 2023 with USD 4.5 billion net profit, proposes 50% payout - USD 2.1bn cash dividend

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Feb 01, 2024, 09:43 ET

ABU DHABI, UAE, Feb. 1, 2024 /PRNewswire/ -- First Abu Dhabi Bank (FAB) delivered record full year 2023 and fourth quarter results, consolidating a three-year journey of disciplined acceleration in business momentum, demonstrating remarkable growth and profitability as a MENA banking powerhouse.

FAB's Board proposed a total cash dividend of USD 2.1bn for 2023 at USD 0.19 per share - the highest since 2020. The 50% payout is subject to shareholder approval at the bank's General Assembly Meeting in March 2024.

FAB Headquarters (PRNewsfoto/First Abu Dhabi Bank (FAB))

FY2023 net profit reached USD 4.5bn, up 56% on an underlying basis (excluding non-recurring gains from sale of stake in subsidiaries). Total income was USD 7.6bn with broad-based growth across all core businesses. Total assets increased 5% yoy to USD 318bn ensuring FAB remains the largest UAE bank. Loans, advances, and Islamic financing grew 5% yoy to USD 132bn - and 8% on average over the past three years, outperforming the UAE banking sector and demonstrating market share gains across segments and geographies. Customer deposits grew 8% yoy to USD 207bn with a 21% increase in CASA balances.

FAB Chairman Sheikh Tahnoon Bin Zayed Al Nahyan said: "The UAE economy continues to be a compelling story of growth and diversification, with deepening trade ties and economic relationships. As the UAE's leading bank and a regional banking powerhouse, we have a clear strategy to deliver for our shareholders while supporting the UAE's strengthening position as a recognised international financial centre, a global trade hub, a nexus of innovation and advanced technology within a thriving business environment.

2023 was an outstanding year for First Abu Dhabi Bank. We further consolidated our leading position as one of the largest global banks, with total assets increasing to USD 318bn and an impressive Return on Tangible Equity (RoTE) in 2023 which represented the culmination of a three-year journey of accelerated business momentum."

Hana Al Rostamani, Group Chief Executive Officer of FAB, said: "FAB's outstanding performance in 2023 marks the third consecutive year of higher profitability, driving greater cash returns for our shareholders.

We have built a strong platform for future growth, ideally placed to facilitate the growing trade and investment flows that support our clients' ambitions, leaving us well positioned for continued growth while enhancing sustainable returns to our shareholders. We are determined to be the regional financial institution of choice for current and prospective clients."

FY 2023 selected financials

Net Profit: USD 4.5bn, 2022: USD 3.7bn, +56%¹ yoy
RoTE: 17.6%, 2022: 15.7%
Earnings per Share: USD 0.39, 2022: USD 0.32
Total Assets: USD 318bn, +5% yoy
Proposed Cash Dividend: USD 0.19 per share, 2022: USD 0.14 fils
Total Income: USD 7.6bn, +32%¹ yoy

¹On an underlying basis excluding gains on sale of stake in subsidiaries.

Regional pacesetter for sustainability

FAB became the first MENA bank in 2023 to set financed emissions-reduction targets - 'Wave 1' sectors of oil & gas, aviation, and power generation, and 'Wave 2' of agriculture, aluminium, cement, commercial real estate (CRE), and steel. With a leading position in the green bond market of USD 3.2bn outstanding, FAB is supporting GCC-region clients with net zero transition. At COP28, the Group upsized its sustainable finance commitment to USD 135bn by 2030, half of the UAE banking sector's pledge of USD 270bn.

For further information, visit: www.bankfab.com

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SOURCE First Abu Dhabi Bank (FAB)