First Abu Dhabi Bank, the UAE’s largest lender by assets, said net income for the first nine months of the year soared 19 per cent as its 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 period to the end of September surged to about Dh11 billion ($3bn), the lender said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.
Total income at rose an annual 13 per cent to Dh18bn, driven by an 18 per cent increase in net interest income which jumped to Dh10.2bn.
Total income for the nine-month period includes a Dh3.1bn net gain on the sale of FAB's stake in the payments business Magnati to New York-listed Brookfield Business Partners.
“Our results in the first nine months of 2022 demonstrate excellent strategic progress, with the group delivering record revenue and net profit, and with our core businesses sustaining their positive momentum in the third quarter as they continue to capitalise on a favourable regional backdrop,” said FAB group chief executive Hana Al Rostamani.
“Our robust balance sheet fundamentals are enabling us to pursue our growth and transformation journey, both, regionally and in the UAE. In Egypt, we have completed our integration activities which will enable us to unlock new opportunities for our growing base in one of our priority markets.”
Total assets grew by 15 per cent in the year to date to more than Dh1.1tn, led by lending growth and sizeable deposit inflows, while loans, advances and Islamic financing increased 14 per cent to Dh465bn.
Customer deposits increased 21 per cent since the start of the year to Dh746bn.
Net impairment charges for loan losses fell 11 per cent to more than Dh1.73bn ($472 million), from the same period in 2021, reflecting the continued economic recovery in the Emirates, the lender said.
FAB expects the UAE economy to grow at it highest rate in more than a decade, supported by higher oil output, relatively moderate inflation and a recovery across key sectors such as property and tourism.
Continuing structural reforms are also driving growth and the diversification of the economy, it said.
The UAE economy expanded 8.4 per cent in the first quarter of this year, exceeding initial estimates, as higher oil prices and successful Covid-19 mitigation measures set it up for its fastest annual growth since 2011.
FAB projects the UAE's gross domestic product growth this year at 6.7 per cent, compared with a previous 5.7 per cent forecast, with the Arab world’s second-largest economy expanding 5 per cent in 2023.
Emirates NBD has raised its economic growth forecast for the UAE to 7 per cent for 2022, while Abu Dhabi Commercial Bank projects a 6.2 per cent expansion.
“The robust nature of the UAE and [the] Abu Dhabi government’s balance sheet are expected to lead to a return to fiscal surplus status” this year and the next, FAB said.
“Although not immune to global headwinds, we believe economic activity in the UAE and [the] broader GCC region will continue to outperform the global backdrop,” the lender said.
The UAE’s foreign trade for the first six months of this year exceeded Dh1 trillion, compared with Dh840bn for the same period before the pandemic.
Tourism sector revenue exceeded Dh19bn during the first half of this year and the total number of hotel guests in the same period hit 12 million.
Growth in the number of hotel guests climbed 42 per cent, compared with the same period before the pandemic.
The UAE's non-oil private sector economy improved at a “robust” pace in September, with the S&P Global purchasing managers’ index reading coming in at 56.1, as strong new business growth continued to drive increases in output and employment.
The rate of new order growth was faster than the trend observed since the survey began in August 2009.
A reading above the neutral level of 50 indicates growth while one below it points to a contraction.
“Looking ahead, the increasingly challenging global backdrop calls for caution, with recessionary risks looming over several economies,” Ms Al Rostamani said.
“As we navigate these headwinds, we are, nevertheless, confident in the resilience of this region, and we remain very well placed to deliver market-leading shareholder returns while being an engine for the region’s economic growth and diversification.”
Company Profile
Founders: Tamara Hachem and Yazid Erman
Based: Dubai
Launched: September 2019
Sector: health technology
Stage: seed
Investors: Oman Technology Fund, angel investor and grants from Sharjah's Sheraa and Ma'an Abu Dhabi
The Kingfisher Secret
Anonymous, Penguin Books
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
SPECS
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Ant-Man%20and%20the%20Wasp%3A%20Quantumania
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HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
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War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham 0-1 Ajax, Tuesday
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Game is on BeIN Sports
The%20specs
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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.
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
MATCH INFO
Liverpool 4 (Salah (pen 4, 33', & pen 88', Van Dijk (20')
Leeds United 3 (Harrison 12', Bamford 30', Klich 66')
Man of the match Mohamed Salah (Liverpool)
UAE SQUAD
Ali Khaseif, Mohammed Al Shamsi, Fahad Al Dhanhani, Khalid Essa, Bandar Al Ahbabi, Salem Rashid, Shaheen Abdulrahman, Khalifa Al Hammadi, Mohammed Al Attas, Walid Abbas, Hassan Al Mahrami, Mahmoud Khamis, Alhassan Saleh, Ali Salmeen, Yahia Nader, Abdullah Ramadan, Majed Hassan, Abdullah Al Naqbi, Fabio De Lima, Khalil Al Hammadi, Khalfan Mubarak, Tahnoun Al Zaabi, Muhammed Jumah, Yahya Al Ghassani, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
'Of Love & War'
Lynsey Addario, Penguin Press
COMPANY%20PROFILE%20
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Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
