First Abu Dhabi Bank, UAE’s largest bank reported Q1 earnings on Wednesday with its balance sheet strengthened across liquidity, funding and capital ratios. The bank reported resilient performance despite the slow recovery from the pandemic – its Net Profit after Tax (NPAT) was up 3% YoY at AED 2.5bn ($680.5mn). Though the bank saw its net interest income drop by 13% to AED 2.7bn ($729mn), its non-interest income boosted the top line and was up 15% to AED 1.7bn ($463.6mn). The total operating expenses also aided the bottom line, lower by 3% to AED 1.3bn ($358.8mn). The total revenue of the bank was down 4% YoY due to the lower interest rates in 2020. The bank reported strong liquidity and adequate provision coverage with its CET1 at 13.7%, Non-Performing Loan (NPL) ratio at 4% and Liquidity Coverage Ratio (LCR) at 141%. The group’s CEO Hana Al Rostamani said, “FAB’s strong foundations and competitive strengths continue to support the bank’s ability to achieve a resilient performance in a challenging quarter characterised by a slower than expected recovery in business activity. During the period, we have made significant progress on the delivery of our strategic priorities, which represent key milestones for both FAB and our industry.”
