International growth continues to boost First Abu Dhabi profits

WAM

• FAB Q3 net profit up 4.8%
• Overseas revenue up 33%
• UAE revenue grows 12%

First Abu Dhabi, the UAE’s largest bank by assets, has reported a 5 percent increase in net profit for the third quarter this year, boosted by “increased client activity” and continued growth in its international operations. 

Net profit rose by over AED200 million in the three months ending September 30, FAB said on Friday, up 4.8 percent from a year earlier.

The bank’s overseas revenue grew 33 percent during the quarter, to AED1.7 billion, accounting for 22 percent of the group’s total of AED8.2 billion.

In July FAB reported 30 percent annual growth in its international franchise for the first half of 2024.

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Revenue in the UAE market in Q3 grew 12 percent, the bank said.

FAB operates in 20 overseas markets including the UK, the US, Brazil and India as well as in South East Asia and around the rest of the Middle East.

The bank’s international growth has been through a combination of organic expansion and mergers and acquisitions.

Hana Al Rostamani, FAB’s group CEO, said the bank’s earnings “shows clearly that our client-centric approach to strategy execution creates value for investors.

“Our network remains a clear differentiator for clients and a competitive strength for the group, supporting our strategic ambitions to expand and diversify our revenue base.”

Lars Kramer, FAB’s group chief financial officer, said the bank’s third quarter profit was supported by “strong business momentum”, rising revenues and diversified income streams.

“Our international franchise, in particular, has played an important role in delivering diversified sources of growth,” Kramer said. 

Observers told AGBI in February that GCC banks might be forced to look overseas to fulfil their growth ambitions, as home markets become increasingly saturated.

While some GCC banks have already ventured outside the region, mainly into Turkey, Egypt and Pakistan, which total nearly half of their presence away from the Gulf, more developed markets, such as China, the US and Europe, remain untapped.