First Abu Dhabi Bank, the UAE’s largest lender by assets, said half-year net income soared 50 per cent as the bank’s core business improved significantly amid a rise in interest income and a fall in provisions for bad loans.
Net profit attributable to shareholders in the first six months of the year surged to Dh8 billion ($2.2bn), the lender said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
The rise in income was supported by a 19 per cent increase in net interest income to Dh6.52bn.
Net impairment charges for loan losses fell to Dh1bn ($272m), down 9 per cent from the first six months of 2021, reflecting the continued economic recovery in the UAE, the lender said.
"Despite heightened global market volatility, our core businesses maintained solid growth momentum reflecting healthy pipeline execution across our diversified franchise and our ongoing strategic focus on deepening client relationships,” Hana Al Rostamani, FAB's group chief executive, said.
Looking ahead, however, the lender recognises a "more challenging global economic outlook" marked by turbulent market conditions and inflationary pressures.
"As we enter the second half of the year, we remain committed to our clients and stakeholders and confident in our ability to deliver sustainable shareholder returns as we pursue our growth and transformation plans,” Ms Al Rostamani said.
The global economy has weakened in the second quarter of this year as rising inflation has forced most central banks to aggressively raise interest rates. Market volatility amid the ongoing conflict in Ukraine, supply chain disruptions, the slowing Chinese economy and high energy prices have added to global headwinds.
Earlier this week, the International Monetary Fund lowered its growth forecast for the global economy for the second time this year. The IMF now projects global growth at 3.2 per cent in 2022 and 2.9 per cent in 2023, revising it down 0.4 and 0.7 percentage points from its April forecast, respectively.
The fund gave a warning that if further risks materialise and inflation continues to rise, global growth could decline to about 2.6 per cent and 2 per cent in 2022 and 2023, respectively, which would put growth in the bottom 10 per cent of outcomes since 1970.
However, the UAE economy, which bounced back strongly in 2021 from the Covid-19 pandemic-driven slowdown, has continued the growth momentum this year.
The country is set to post its strongest annual gross domestic product expansion this year since 2011 after it grew by 8.2 per cent in the first three months of 2022 on higher oil prices and measures that stemmed the impact of the pandemic, according to the Central Bank of the UAE.
Despite heightened global market volatility, our core businesses maintained solid growth momentum reflecting healthy pipeline execution across our diversified franchise and our ongoing strategic focus on deepening client relationships
Hana Al Rostamani,
group chief executive, FAB
The economy remains resilient amid relatively lower inflation as key economic sectors including real estate and tourism continue to rebound.
FAB has upgraded its UAE GDP growth forecast to 5.7 per cent in 2022 and 4.4 per cent in 2023 from its earlier estimate of 4.8 per cent and 4 per cent, respectively. It expects inflation in the country to reach around 5 per cent.
"Despite ongoing global uncertainty, we maintain a positive outlook for UAE economic growth this year and beyond," the bank said.
Loans, advances and Islamic financing climbed to Dh459bn, a 12 per cent rise since the end of December last year. Customer deposits increased 5 per cent during the period to Dh648bn.
"Almost Dh50bn net incremental lending was extended by FAB year-to-date, which is a record for the group for any half-year period," Ms Al Rostamani said.
FAB's assets rose 4 per cent in the first six months to Dh1.04 trillion at the end of June. The lender's liquidity coverage ratio came in at 135 per cent, underlining its strong liquidity position.
The bank is optimistic about mid-to-high single-digit growth this year, supported by the UAE's economic rebound and higher oil prices, although the Ukraine conflict is a concern, James Burdett, group chief financial officer, said in February.
"In the last quarter, all our core businesses delivered top line growth sequentially, led by a double-digit growth in investment banking and corporate and commercial banking, which is a strong result in the context of adverse global market conditions," Mr Burdett said on Thursday.
"This was helped by strong volumes, early benefits from rising interest rates and healthy client activity."
The lender, which opened a representative office in Iraq in March as part of its geographical expansion, in April withdrew its non-binding offer to acquire a majority stake in Egypt's largest investment bank, EFG Hermes.
The First Monday in May
Director: Andrew Rossi
Starring: Anna Wintour, Karl Lagerfeld, John Paul Gaultier, Rihanna
Three stars
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
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More from Rashmee Roshan Lall
Mohammed bin Zayed Majlis
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Killing of Qassem Suleimani
South Africa's T20 squad
Duminy (c), Behardien, Dala, De Villiers, Hendricks, Jonker, Klaasen (wkt), Miller, Morris, Paterson, Phangiso, Phehlukwayo, Shamsi, Smuts.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
KEY DEVELOPMENTS IN MARITIME DISPUTE
2000: Israel withdraws from Lebanon after nearly 30 years without an officially demarcated border. The UN establishes the Blue Line to act as the frontier.
2007: Lebanon and Cyprus define their respective exclusive economic zones to facilitate oil and gas exploration. Israel uses this to define its EEZ with Cyprus
2011: Lebanon disputes Israeli-proposed line and submits documents to UN showing different EEZ. Cyprus offers to mediate without much progress.
2018: Lebanon signs first offshore oil and gas licencing deal with consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
2018-2019: US seeks to mediate between Israel and Lebanon to prevent clashes over oil and gas resources.
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Killing of Qassem Suleimani
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
UAE currency: the story behind the money in your pockets
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Most%20ODI%20hundreds
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The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Killing of Qassem Suleimani
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Killing of Qassem Suleimani
COMPANY%20PROFILE
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Day 2, Abu Dhabi Test: At a glance
Moment of the day Dinesh Chandimal has inherited a challenging job, after being made Sri Lanka’s Test captain. He responded in perfect fashion, with an easy-natured century against Pakistan. He brought up three figures with a majestic cover drive, which he just stood and admired.
Stat of the day – 33 It took 33 balls for Dilruwan Perera to get off the mark. His time on zero was eventful enough. The Sri Lankan No 7 was given out LBW twice, but managed to have both decisions overturned on review. The TV replays showed both times that he had inside edged the ball onto his pad.
The verdict In the two previous times these two sides have met in Abu Dhabi, the Tests have been drawn. The docile nature of proceedings so far makes that the likely outcome again this time, but both sides will be harbouring thoughts that they can force their way into a winning position.
More on Quran memorisation:
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
'HIJRAH%3A%20IN%20THE%20FOOTSTEPS%20OF%20THE%20PROPHET'
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