The bank’s shareholders also approved the Chairman’s and the Directors’ Reports, and the Shari’a Supervisory Board report for NBF Islamic, the Islamic banking window of NBF. In addition, the bank’s Corporate Governance Report and the consolidated financial statements for the year ended 31 December 2017 were discussed and approved. The shareholders confirmed the appointment and remuneration of the bank’s external auditors and Shari’a supervisory board members for NBF Islamic for 2018. The Board of Directors’ remuneration proposal of 0.64% of the net profit, after deducting all depreciation and reserves, for its members was also approved.

Through a special resolution, the shareholders approved an amendment to the terms of the bank’s first tranche of Tier 1 perpetual capital notes of AED 500mn allowing the future conversion of the notes into shares. They also approved the Board of Directors’ recommendation to increase paid up capital of the Bank through such a conversion by AED 175,438,596 to AED 1,541,965,159 at a conversion factor of AED 2.85 for each note, subject to the approval of the Securities and Commodities Authority and the UAE Central Bank.

In addition, the shareholders considered and approved the increase in ceiling of non-convertible additional Tier 1 capital instruments by US$500mn for the purposes of strengthening the Bank’s capital base, taking the Tier 1 capital to US$636.1mn.

His Highness Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, Chairman said: “The Board is pleased with NBF’s results during this challenging period of unprecedented change. We believe they are a testament to the bank’s agile business model and exceptional customer service. NBF delivered strong core performance through its renewed focus on being the financial partner for business, and meeting its customers’ professional and personal needs. The Board recognises the importance of dividends to shareholders, and believes in balancing such returns with ongoing investment in the brand to support future growth and preserving strong capital ratios. The approved changes in the capital will further strengthen NBF’s position to navigate through the current market conditions and support its growth strategy.”

His Excellency Sir Easa Saleh Al Gurg, KCVO, CBE, Deputy Chairman commented: “2017 ends on a positive note, with a strong set of results, supported by high standards of corporate governance, compliance and risk management. Our relentless focus on our customer’s needs and building an engaged and enabled work force, augur well for the effective delivery of our strategy for 2018. NBF is well positioned to capitalise on market opportunities and strengthen its client partnerships.”

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• Group Net Profit at AED 2.61 Billion in the third quarter, up 2% sequentially

• Excluding one-off gains on sale of investment properties, Group Net Profit for the nine-month period is up 2% year-on-year and lower by 4% year-on-year in the third quarter

• Solid Returns on Risk Weighted Assets (RoRWA) at 2.2%, stable year-on-year

Integration journey progressing well; merger benefits materialising ahead of plan

• Group continues to achieve key milestones in integration journey

• Industry-leading cost-to-income ratio (excluding integration costs) of 27.6% supported by the realisation of cost synergies ahead of plan and one-time integration costs well under control

Leading franchise generates strong business momentum in third quarter

• Net loans and advances up 2% sequentially to AED 328 Billion

• FAB dominates GCC and MENA loan league tables year-to-date

• Group Net Interest Margin (NIM) at 2.22%, improved sequentially

Healthy asset quality metrics reflect prudent and best-in-class risk management practices

• Non-Performing Loan (NPL) ratio at 3.0% and provision coverage at 109%

• Cost of risk at 71bps, improving from 79bps in prior year period Ample liquidity and strengthened capital position

• Customer deposits at AED 379 Billion

• Loan-to-deposit ratio highly comfortable at 86.6% • Common Equity Tier-1 (CET11 ) ratio at 14.6%, up from 13.8% as of September-end 2016

First Abu Dhabi Bank (FAB) has reported consolidated pro forma financial results for the nine-month period ended September 2017, delivering a resilient performance.

Nine-month 2017 Group Net Profit was achieved at AED 8.09 Billion, down 4% year-onyear, or up 2% when excluding one-off gains on sale of investment properties. In the third quarter of 2017, Group Net Profit was up 2% sequentially on the back of a notable improvement in cost of risk, and disciplined cost control coupled with the realisation of merger synergies ahead of plan. Compared to the third quarter of 2016, Group Net Profit was down 18%, or only 4% lower when excluding one-off gains on sale of investment properties.

As of September-end 2017, the Group enjoys ample liquidity with a loans-to-deposits ratio at 86.6%. In addition, capital position notably strengthened with CET1 reaching 14.6%, up from 13.8% last year. While total assets grew 2% year-on-year, balance sheet optimisation has led to a 3% reduction in risk weighted assets. As a result, the Group generated solid risk adjusted returns with RoRWA at 2.2%, stable year-on-year.

Abdulhamid Saeed, Group Chief Executive Officer of FAB, said: “FAB’s performance in the first nine months of 2017 demonstrates the Group’s resilience as it continues to achieve integration milestones and deliver solid results against an operating backdrop that is improving, yet remains challenging. As we approach the end of 2017, I am very pleased with the excellent progress we have made in our integration journey. As we align our products and services, and further drive innovation and the right digital solutions across all areas of the business, we continue to place our clients first and work towards enhancing long-term customer experience across all business groups.”

“In a strong testament to our leading position as a financial services provider in the UAE and the broader region, and despite a subdued loan market, FAB is dominating the GCC and MENA loan league tables’ year-to-date with a 14.3% and 12.7% market share respectively. In addition, FAB was recognised by Global Finance as the safest bank in the UAE and the Middle East, and also the 4th safest bank in emerging markets, the 17th amongst commercial banks and the 31st amongst all banks, worldwide.”

He added: “As we continue to build strong foundations to support the long term sustainable growth of our franchise, we are on track to meet our targets for the current Page 3 of 4 year and our strong capital buffers provide us with ample room to deliver top returns for our shareholders.”

Integration and other updates

The Bank’s overall integration strategy is to leverage on the key strengths from legacy banks in order to create value for FAB customers, employees, shareholders and communities. Since the merger was completed earlier this year in April, the Group has made significant progress in the integration journey. This included the finalisation of the bank’s organisational structure, operating model, and the harmonisation of Group policies and our risk framework. The optimisation of branches and centralisation of back office activities are also underway, to enhance efficiency and productivity across the business.

The launch of FAB’s new brand identity was quickly followed by the full re-brand of a number of branches and customer touchpoints both locally and internationally, with the optimisation of the Bank’s global locations set to continue. Full network and channel rebrand across all critical customer touch-points is expected to be completed by the end of the current year. Good progress has also been made towards IT system integration, which is on track. From a financial standpoint, merger benefits are materialising quickly and ahead of plan, and one-time integration costs are well under control.

In parallel to the integration project, FAB is focused on driving further innovation across all areas of the business to significantly grow its product and service range. The Bank recently appointed a Group Chief Customer Experience and Digital Officer to look after the enterprise-wide alignment of FAB’s digital services and enhance long-term customer experience.

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