First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, has announced a cash dividend of 75 fils per share for 2024. This decision comes from a remarkable year marked by strong profitability and growth across its core business segments. The dividend payout reflects FAB’s commitment to delivering consistent value to its shareholders and is expected to be approved at the upcoming Annual General Meeting (AGM).
Strong Financial Performance in 2024
FAB reported impressive financial results for the year ended December 31, 2024, showcasing its resilience and ability to thrive in a challenging economic environment. Key highlights from the bank’s performance include:
- Record Net Profit: FAB achieved a record net profit of AED 16.4 billion, marking a significant increase compared to previous years. This achievement underscores the bank’s effective management and strategic initiatives.
- Revenue Growth: The bank’s total revenue reached AED 27.8 billion, driven by robust growth across all business lines, including corporate banking, retail banking, and investment services. This diverse revenue stream highlights FAB’s well-rounded business model.
- Return on Tangible Equity (RoTE): FAB’s RoTE stood at an impressive 17.6%, reflecting its efficiency in utilizing shareholder equity to generate profits. This figure positions FAB among the top banks in terms of profitability.
- Capital Adequacy Ratio (CAR): The bank maintained a strong CAR, ensuring its ability to meet regulatory requirements and support future growth initiatives.
These results reinforce FAB’s position as a leading financial institution in the region and demonstrate its capacity to deliver value to shareholders.
Details of the Dividend Announcement
The proposed dividend of 75 fils per share represents a significant increase from previous payouts and reflects the bank’s strong financial health. Shareholders who are registered on the bank’s share register as of March 15, 2025, will be entitled to receive this dividend. The exact payment date will be announced following the AGM.
This decision to increase dividends is particularly noteworthy as it comes after three consecutive years of accelerated business momentum and solid performance. The AGM will also address other important agenda items, including the approval of financial statements and reports from auditors.
Management Insights
Sheikh Tahnoon Bin Zayed Al Nahyan, Chairman of FAB, expressed confidence in the bank’s prospects during a recent statement. He remarked, “Against the backdrop of a more challenging global financial environment, First Abu Dhabi Bank has demonstrated resilience and robust performance. Our focus for 2024 is to consolidate our position as the UAE market leader while enhancing our international network to accelerate growth.”
Hana Al Rostamani, Group Chief Executive Officer at FAB, echoed these sentiments, stating that the bank remains committed to delivering outstanding returns and value for its stakeholders. She highlighted that FAB’s strong balance sheet and capital position have been critical in achieving such impressive results. “We have worked diligently to diversify our franchise across geographies and business lines,” she added.
Strategic Focus for Future Growth
Looking ahead, FAB is set on several strategic priorities aimed at sustaining its growth trajectory:
- Diversification: The bank plans to further diversify its operations across different regions and sectors, reducing reliance on any single market or product line.
- Digital Transformation: Emphasizing innovation, FAB aims to enhance its digital capabilities to improve customer experience and streamline operations.
- Sustainability Initiatives: FAB is committed to supporting sustainable finance practices and contributing positively to the UAE’s economic diversification strategy.
- Strengthening International Presence: By expanding its international footprint, FAB seeks to tap into new markets and enhance its global competitiveness.
These strategic initiatives are designed to bolster profitability and ensure that FAB remains at the forefront of the banking sector in the region.
About First Abu Dhabi Bank (FAB)
First Abu Dhabi Bank (FAB) is recognized as one of the safest banks globally and serves as a cornerstone of the UAE’s banking industry. With a comprehensive range of financial solutions tailored for individuals, businesses, and government entities, FAB plays a vital role in driving economic growth within the UAE and beyond. The bank is dedicated to maintaining high standards of customer service while pursuing innovative solutions that meet evolving market demands.
As FAB prepares for another year of growth, stakeholders can expect continued commitment to excellence and value creation as it navigates an ever-changing financial landscape. The upcoming AGM will provide further insights into the bank’s strategic direction and financial outlook for 2025 and beyond.
