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FAB shareholders approve Dh7.8b cash dividend

Banking sector remains well capitalised with ample reserves of liquidity, chairman says

Published: Wed 6 Mar 2024, 7:43 PM

Updated: Wed 6 Mar 2024, 7:45 PM

By
Issac John

At the annual general meeting, FAB’s shareholders approved the distribution of 50 per cent cash dividends. — File photo

The UAE’s largest lender, First Abu Dhabi Bank, which achieved a record net profit of Dh16.4 billion in 2023, said on Wednesday that its shareholders approved a Dh7.8 billion cash dividend.

At the annual general meeting, FAB’s shareholders approved the distribution of 50 per cent cash dividends (Dh0.71 per share), implying a total cash dividend of Dh7.8 billion) for the financial year ended December 31, 2023, the lender said in a statement.

“Against the backdrop of a more challenging global financial and economic environment in 2023, First Abu Dhabi Bank came through the year with a resilient and robust performance, a testimony to the strength of its fundamentals and the depth of its management skills,” said Sheikh Tahnoon bin Zayed Al Nahyan, chairman of FAB. “The UAE once again proved itself to be a haven of economic and financial stability, recording sound growth and an acceleration of the country’s strategy for strategic diversification. Within this framework, the banking sector remains well capitalised with ample reserves of liquidity to back its ambitious expansion plans,” he said.

“Our strategic direction is clear and unambiguous: to advance FAB’s position as the driver of economic and financial progress in the UAE, driving medium- and long-term value for all our stakeholders, while supporting the UAE’s position as a nexus of international trade and diplomacy… Our task in 2024 is to consolidate and extend the bank’s position as the UAE market leader, build on its strong credit rating and depth of capital resources, and enhance our strong international network to accelerate growth and become a global financial powerhouse with the strongest franchise in the region,” said Sheikh Tahnoon.

Hana Al Rostamani, group chief executive officer at FAB, said over the years, First Abu Dhabi Bank has been at the centre of shaping the region’s banking industry, powering economic growth and supporting global cross-border trade and investment flows. “During the past three years, we continued our growth and delivered consistently outstanding returns and value to our shareholders, customers and partners. This strong performance was underpinned by our solid balance sheet and our position as one of the best capitalised, most profitable and safest banks in the world,” she said.

“In 2023, we achieved a record net profit of Dh16.4 billion, Dh27.8 billion in revenue fuelled by growth across all our core businesses, and a 17.6 per cent return on tangible equity, among other highlights. “Our RoTE shows the group’s ability to not only create shareholder value – it also highlights our capacity to accrete capital and provide a platform for future growth,” said Al Rostamani.

“We have worked to diversify our franchise across geographies and across business lines, products, funding sources and income streams. We have remained strategically driven, value-driven, and forward-focused in everything we do, and we are well positioned to build on our momentum and will continue to focus on delivering against our strategic priorities,” said the FAB CEO.