- FY’24 revenue crosses AED 30 billion, up 15% year on year
- Return on Tangible Equity (RoTE) of 16.8%, firmly aligned with medium term guidance of above 16%
- Q4’24 net profit grew by 4% year on year, reaching AED 4.2 billion
- Board recommends cash dividend of 75 fils per share, equivalent to a total payout of AED 8.3 billion, and 51% of group net profit available for distribution.
Abu Dhabi: First Abu Dhabi Bank (FAB) has achieved solid results in 2024 with Group net profit reaching AED 17.1 billion, up 4% year on year, driven by a 15% increase in revenue to AED 31.6 billion. Profit before tax grew 13% year on year to AED 19.9 billion nearing AED 20 billion, reflecting increased client activity, strong business volumes, diversified income streams and ongoing operating efficiencies across the franchise. This performance marks consecutive years of sustained growth in scale and profitability, solidifying FAB’s position as the UAE’s global bank.
Net profit for the fourth quarter of 2024 reached AED 4.2 billion, up 4% yoy, while revenue for Q4’24 increased by 11% yoy to AED 7.7 billion.
FAB’s Board of Directors is recommending a cash dividend of 75 fils per share for the full year ended 31 December 2024, representing a total dividend payout of AED 8.3 billion, and 51% of group net profit available for distribution. The dividend proposal is subject to shareholder approval at the bank’s Annual General Meeting scheduled to be held on 11 March 2025.
Double-digit revenue growth in both domestic (11%) and international (32%) franchises supported expansion of the asset base during 2024, while the bank’s international franchise strengthened its global footprint across 20 key financial markets. Total assets increased 4% yoy to AED 1.21 trillion as of December-end 2024, with a 9% yoy growth in loans, advances and Islamic financing to AED 529 billion for the period, and customer deposits up by 3% yoy to AED 782 billion.
The effective and robust execution of FAB’s strategic initiatives produced a return on tangible equity (RoTE) of 16.8% for 2024, firmly aligned with the medium-term guidance of above 16%.
His Highness Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman of FAB, said: “FAB’s performance in 2024 cements consecutive years of expanded scale and improved profitability, demonstrating steady progress against our Group strategy as the UAE’s global bank.
Fueled by the UAE’s economic growth and the bank’s strategic leaps in growing relationships across key economic corridors and markets, FAB delivered strong results last year, supported by record business volumes, successful diversification and innovation. The bank’s achievements solidified the nation’s standing as a premier financial and business hub, and delivered on our leadership’s vision for an open, efficient, and globally integrated business environment. As the UAE’s global bank for businesses and investors, FAB is fully aligned with this vision and remains a key enabler of the UAE’s global aspirations.
FAB remains committed to creating sustained value for our shareholders. Our Board of Directors recommends a cash dividend of 75 fils per share for 2024, representing a total dividend payout of AED 8.3 billion.
Looking ahead, FAB will remain vital to driving the UAE’s future vision, fostering sustainable growth and innovation, and connecting local, regional, and international economies within a world-class financial ecosystem.”
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “2024 was a strong year for First Abu Dhabi Bank. We achieved a net profit of AED 17.1 billion and a revenue of AED 31.6 billion and continued to deliver greater value to our clients in line with our strategic goals as the UAE’s global bank.
Our strategy produced robust results in the UAE, our thriving home market and the foundation of our growth, while powering the expansion of our international franchise, as we diversified growth across customer segments and sources of income and grew international revenue by 32%.
Our balance sheet strength is a cornerstone of our success. Our solid capital and liquidity positions and disciplined risk management form the foundation of our ability to deliver resilient and sustainable growth, underpinning the trust that our customers and stakeholders place in us.
We have also made clear progress on ESG, facilitating AED 267 billion of sustainable and transition financing projects to-date, which represents over half of the Group’s 2030 target of AED 500 billion. We have made further strides towards our carbon emission reduction targets and became the first bank in the region to publish a TNFD report recognising our responsibility to support a nature-positive future by aligning financial practices with environmental resilience.
Our region continues to grow and expand and the opportunities to link the UAE and the Middle East with the rest of the world are immense. As the UAE’s global bank, FAB’s strategy is designed to help our clients maximise those opportunities. We will continue to invest in technology and innovation to enhance our services, drive efficiencies and grow our competitive edge. In doing so, we will sharpen our focus on consistently delivering strong, sustainable shareholder returns.”
Lars Kramer, Group Chief Financial Officer of FAB, added: “Our fourth-quarter performance concludes a highly successful year for the Group in 2024, with a net profit of AED 17.1 billion reflecting a 4% increase compared to 2023 and profit before tax up 13% to AED 19.9 billion. Revenue surpassed the AED 30 billion threshold, driven by solid underlying growth across all our businesses, higher margins and diversified income streams helped by record client activity.
Our international franchise, in particular, has played an important role in delivering diversified sources of growth capitalising on expanded capabilities and new relationships. At the same time, we continued to invest in talent, systems and technology while maintaining excellent operating efficiency and a prudent approach to risk.
Looking ahead, our solid balance sheet fundamentals, resilient NIM profile and diversified business model position us well to continue to deliver profitable growth and achieve our return targets.”
2024 operational highlights
- Continued growth in wholesale banking services: Investment Banking revenue grew 19% yoy while maintaining top rankings across key MENA IB league tables. Global Markets also increased revenue by 18%. Corporate and Commercial Banking saw a continued rise in loans, deposits and revenue, helped by a number of key technology innovations including the launch of the Commercial Banking Service Accelerator, empowering SME clients to access essential account services digitally.
- Retail banking momentum accelerated: 20% rise in new-to-bank customers, while lending and deposits grew 15% and 17% respectively, with a significant growth in CASA balances Continued enhancement of the private banking offering resulted in 75% yoy growth in assets under management. Consumer Banking and Private Banking revenue grew 18% and 15% yoy respectively.
- Consistent franchise growth: Double digit revenue growth across domestic and international franchises, with increases of 11% and 32% respectively, as we continued to strengthen and build new relationships across key economic corridors. The international franchise is now contributing 23% to group revenue, up from 20% in 2023 and 18% in 2021, highlighting progress in diversification efforts as we expand our footprint across key markets.
- Optimised operations and services with AI: A clear and ambitious multi-strategic investment in technology and AI harnessed emerging technology capabilities to improve customer experience, strengthen risk management and further streamline operations, driving productivity and efficiency gains. 2024 also marked the deployment of FAB’s first in-house conversational analytics tool and the launch of the ‘AI Innovation Hub’ for financial services in partnership with Microsoft.
- Clear progress on ESG: Sustainable and transition financing facilitated by FAB rose to AED 267 billion, representing over half of the Group’s 2030 target of AED 500 billion. FAB remained a regional leader in green and social bonds and sukuk issuances, with USD 4.1 billion outstanding. Furthermore, our commitment to financial inclusion continued, with over AED 4.3 billion in new financing provided to SMEs during FY’24, 30% higher than the prior year.
ABOUT FIRST ABU DHABI BANK
Headquartered in the United Arab Emirates, First Abu Dhabi Bank (FAB) is one of the world’s largest and safest financial institutions, with total assets of AED 1.21 trillion (USD 330 billion) at the end of December 2024 and a credit rating of Aa3/AA-/AA- from Moody’s, S&P and Fitch respectively, with a stable outlook.
FAB provides financial services and expertise across five business units – Investment Banking, Corporate and Commercial Banking, Consumer Banking, Private Banking, and Global Markets – through an international network that covers 20 markets worldwide.
Listed on the Abu Dhabi Securities Exchange (ADX), FAB is a leading Islamic finance provider and a pioneer in sukuk issuance offering comprehensive Shari’ah-compliant products. FAB is also a regional leader in sustainability, with an MSCI ESG rating of ‘AA,’ and ranked among the top 5% of banks globally according to Refinitiv’s ESG scores. The bank also received a regional-best Low ESG Risk evaluation from Sustainalytics, and the highest CDP score among UAE banks. FAB currently chairs the Net-Zero Banking Alliance (NZBA) Principals Group and was the first GCC bank to join the UN-convened organisation in 2021.
For more information, visit: www.bankfab.com
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