FAB suggests a 7.8 billion AED cash dividend distribution proposal
First Abu Dhabi Bank (FAB) achieved record financial performance in the fourth quarter and for the entire fiscal year 2023, solidifying its position as one of the biggest banks in the world.
With gains from the sale of subsidiary shares subtracted, the bank's net profits for 2023 came to 16.4 billion dirhams, a stunning 56% increase from the year before. Revenues increased to 27.8 billion dirhams as a result of expansion in each of the group's major industries.
The Board of Directors suggested paying out cash dividends for the year 2023 totaling 7.8 billion dirhams, or 71 fils per share, in response to these favourable results. The proposed dividend payment, which would be the largest since 2020, is contingent on the approval of shareholders in the general assembly on March 5. Loans, advances, and Islamic financing climbed by 5% to 484 billion dirhams, while the bank's total assets increased by 5% to 1.2 trillion dirhams.
Deposits also showed an 8% increase, reaching 760 billion dirhams, with a substantial 21% growth in current and savings accounts. The bank's outstanding performance is attributed to its strategy of adding distinct value to shareholders and supporting the UAE's position as a prestigious financial centre, a hub for innovation and modern technology, and a prosperous commercial destination.
Hana Al Rostamani, CEO of FAB Group, expressed her satisfaction with the bank's distinguished results, highlighting the consistent growth in profits and cash returns to shareholders for the third consecutive year. She emphasised FAB's commitment to diversifying its international business portfolio and providing over 125 billion dirhams of sustainable financing to date.
Lars Kramer, Group Chief Financial Officer, underscored the bank's effective capital management and rational cost management, resulting in strong financial results and attractive returns to shareholders. The bank's focus remains on consolidating its position as a preferred financial institution in the UAE and the broader region.
