First Abu Dhabi Bank, the UAE’s largest lender by assets, reported a 70 per cent surge in its first quarter net profit, driven by a sharp rise in interest income and sustained momentum across all business segments.
Net profit attributable to shareholders for the three months to the end of March surged to Dh3.9 billion ($1.07 billion), excluding Magnati-related capital gains recorded in the first quarter of 2022, the bank said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
Net interest income increased by an annual 41 per cent to Dh4.4 billion in the first quarter, total assets increased 21 per cent to nearly Dh1.2 billion, and the bank attracted Dh80 billion in customer deposits in the period.
“Building on a record year in 2022 and prudent actions taken in the fourth quarter of last year, the notable improvement … was driven by sustained momentum across all business segments and product lines, cost and risk discipline, and our proven ability to navigate evolving market conditions,” said Hana Al Rostamani, FAB group chief executive.
“During the period, we remained focused on meeting our clients’ evolving needs, across all segments. Using our scale, specialisation, partnerships, and the transformative power of technology, we are building a bank fit for the future, centred around our customers.”
FAB said its quarterly profit was also supported by a 74 per cent rise in non-interest income to Dh2.3 billion, as continued economic momentum in the UAE boosted performance across all core business.
Most central banks across the globe are continuing to follow the US Federal Reserve's lead on increasing benchmark policy rates. The Fed is trying to bring inflation down towards its target range of 2 per cent and restore price stability amid market turmoil fuelled by recent bank failures in the world's largest economy.
Lenders in the GCC, where most central banks peg their currency to the US dollar, are benefiting from rising interest rates as their economies recover strongly and inflation in the region remains relatively low.
Profitability of the four largest banks in the UAE will continue to grow this year amid rising interest rates and continuing economic momentum, Moody's Investors Service said in March.
After growing 7.6 per cent in 2022, the most in 11 years, the UAE economy is expected to expand 3.9 per cent this year and 4.3 per cent in 2024, the UAE Central Bank said last month.
FAB said its cost-to-income ratio at the end of March reached 25.1 per cent, compared with 33.2 per cent recorded in the first quarter of 2022.
Loans and advances and Islamic financing rose 9 per cent on an annual basis to Dh473 billion.
The lender, which expects the UAE's economy to expand by about 5 per cent this year and maintain robust growth momentum next year, is also upbeat about the regional growth prospects.
“Despite the global headwinds, to which the GCC will not be immune, we expect the economies of the UAE and KSA [Saudi Arabia] to remain robust as the region continues to focus on economic growth and diversification,” FAB said.
The GCC, with most members of the economic bloc holding their PMI’s firmly above 50 since late 2020, has experienced continued strength and resilience. However, Egypt’s macro narrative remains fragile, the bank said.
On the oil outlook, FAB expects the Brent benchmark to average $89 per barrel this year, compared to an original target of $93 per barrel.
However, despite a slowing global economy, the bank is “positioned to navigate uncertain times”, Ms Al Rostamani said.
FAB is open to acquisition opportunities in the Middle East and North Africa and in markets beyond as long as the deals make commercial sense and create value for the bank.
The lender is also open to acquiring international banks if an opportunity presents itself, as it continues to expand its footprint in markets across continents, Ms Al Rostamani told The National earlier this month.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
SPECS
Toyota land Cruiser 2020 5.7L VXR
Engine: 5.7-litre V8
Transmission: eight-speed automatic
Power: 362hp
Torque: 530Nm
Price: Dh329,000 (base model 4.0L EXR Dh215,900)
Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
MATCH INFO
Manchester City 3 (Silva 8' &15, Foden 33')
Birmginahm City 0
Man of the match Bernado Silva (Manchester City)
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How it works
A $10 hand-powered LED light and battery bank
Device is operated by hand cranking it at any time during the day or night
The charge is stored inside a battery
The ratio is that for every minute you crank, it provides 10 minutes light on the brightest mode
A full hand wound charge is of 16.5minutes
This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode
When more light is needed, it can be recharged by winding again
The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge
No limit on how many times you can charge
