- Profit Increase: FAB reported a profit of 4.3 billion dirhams, a 2.4% increase year-over-year, beating estimates of 3.9 billion dirhams.
- Rise in Operating Income: Operating income rose by 14% to 7.76 billion dirhams, surpassing the estimated 7.55 billion dirhams.
- Impairments: Impairments increased by 33% to 896 million dirhams.
- Stable EPS: Earnings per share (EPS) remained stable at 0.38 dirhams, meeting estimates of 0.37 dirhams.
- Non-Interest Income Surge: Non-interest income grew by 19% to 2.85 billion dirhams.
- Net Interest Income Growth: Net interest income increased by 11% to 4.91 billion dirhams.
- Higher Deposits: Total deposits increased by 2.8% to 766 billion dirhams.
- Asset Expansion: Total assets grew by 2.5% to 1.18 trillion dirhams.
- Improved Net Interest Margin: Net interest margin rose to 1.96% from 1.73% year-over-year.
- Lower Cost to Income Ratio: The cost to income ratio improved to 24.8% from 25.3% year-over-year.
- Return on Tangible Equity: Return on tangible equity decreased to 18.1% from 19.4% year-over-year but was still above the estimated 14.8%.
- Stronger Equity Ratios: The common equity Tier 1 ratio increased to 14% from 13.6%, and the capital adequacy ratio grew to 17.4% from 16.6% year-over-year.
- Guidance on Track: The company is on track with its 2024 and medium-term guidance, according to comments.
- Business Expansion: The CEO noted active efforts in building and expanding business corridors.
- Analyst Ratings: FAB has received 10 buy ratings, 4 hold ratings, and 1 sell rating.
A look at First Abu Dhabi Bank PJSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
First Abu Dhabi Bank PJSC, a leading banking institution, demonstrates a robust long-term outlook based on the Smartkarma Smart Scores analysis. With high scores across key factors, including Value, Dividend, Growth, Resilience, and Momentum, the bank is positioned favorably in the market. Notably, it excels in areas such as resilience, reflecting its stability and ability to weather economic uncertainties. Additionally, its strong performance in value and dividend scores indicates sound financial health and potential for returns to investors.
As a provider of banking services globally, First Abu Dhabi Bank PJSC stands out for its diverse offerings, including deposits, personal loans, e-banking, trade finance, and foreign exchange services. The consistently high scores across various metrics suggest a well-rounded approach to business and a strategic vision for sustainable growth in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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