FAB posts $3bn profit

ABU DHABI / WAM

First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s leading and safest financial institutions, reported its financial results for the full year ended December 31, 2017.
FAB delivered a resilient performance in a transitional year with a full year 2017 group net profit at AED10.92 billion ($3 billion), compared to AED11.32 billion in 2016. The adjusted group net profit — excluding integration costs and merger-related amortisation of intangibles totalling AED601 million in 2017 — amounted to AED11.52 billion, broadly in line with 2016.
Group revenues were four percent lower year-on-year mainly reflecting softer market conditions, and the bank’s focus on portfolio optimisation to enhance risk-adjusted returns. This was offset by lower impairment charges compared to 2016, as well as disciplined cost control and the realisation of substantial synergies related to the merger.
HH Sheikh Tahnoun bin Zayed Al Nahyan, National Security Adviser and Chairman of FAB, said, “FAB’s 2017 financial results are a clear testament to the sound rationale behind the merger and clearly demonstrate that it was a well-planned and strategic decision, based on solid forward-looking, market perspective and insights. Our merger, which was officially inaugurated in early 2017, created the UAE’s largest bank, with the aim of actively supporting the UAE’s economy, through combining the solid expertise and strengths of both legacy banks.”
Sheikh Tahnoun added, “At the end of our first year, we have created significant value for our shareholders, customers and employees despite challenging market conditions. Reflecting FAB’s continued focus on delivering top shareholder returns, the bank’s board of directors has recommended the distribution of a cash dividend of AED0.70 per share for the financial year ended December 31, 2017.
This implies total cash dividends of AED7.6 billion for FAB’s first year, up 11 percent compared to 2016. This is the highest combined dividend amount distributed by the legacy banks and further underscores the strategic rationale of the merger. The recommended dividend proposal is subject to shareholders approval at the Ordinary General Assembly Meeting which is proposed to be held in Abu Dhabi on Feb 25.”
“As we continue to build on our success moving forward, our board and senior leadership are optimistic about our strategic direction for the future of FAB, and we are confident that we will continue to demonstrate sustained growth and meet our goals,” he continued.