FAB to pay out record $2.1bn cash dividend

Alamy via Reuters

The board of First Abu Dhabi Bank, the UAE’s biggest lender by assets, has recommended the bank’s highest cash dividend payout since 2020.

At AED 7.8 billion ($2.12 billion), the dividend represents around half of FAB’s net profit for 2023, which surged 56 percent year on year to AED16.4 billion.

Total income increased 32 percent year on year to AED27.8 billion last year.

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Total assets gained five percent year on year to AED1.2 trillion. Loans and deposits registering an annual increase of five percent and eight percent, respectively.

“FAB’s performance in 2023 marks the third consecutive year of improved return on tangible equity driving higher cash returns. This demonstrates consistent strategic execution,” said chairman Sheikh Tahnoon Bin Zayed Al Nahyan.

The lender’s fourth-quarter 2023 profit surged 63 percent to AED4.01 billion compared to AED2.46 billion a year ago. 

Total quarterly income increased 22.16 percent year on year to AED7.22 billion.

The bank has been focused on diversifying its global franchise both internationally and across business lines, products, funding sources and income streams, added group CEO Hana Al Rostamani. 

“Simultaneously, we have facilitated over AED125 billion sustainable finance projects to date. These strategic achievements will enable us to keep developing our business further, while capitalising on new sources of value creation,” she said.