UAE’s FAB facilitated over $9bn in sustainable projects in 2022

First Abu Dhabi Bank’s (FAB) group CEO Hana Al Rostamani said the bank facilitated more than $9bn worth of sustainable projects last year as part of its target to disburse $75bn by 2030.

The Abu Dhabi-based bank revealed that more than half of its bond issuances in 2022 were in a ‘green’ format. It has also grown its range of sustainable accounts, loans and finance offerings to support customers to achieve their sustainability goals.

Speaking at the bank’s general assembly meeting, Al Rostamani said FAB’s fundamental ethos is not only defining the future but bringing it to life for clients and stakeholders alike as the banking group is diversifying and expanding its business.

“We are delivering on our ambition to move from being another bank for our clients, to becoming their most trusted global partner – as an innovative and agile institution, fit for the future” – Hana Al Rostamani, FAB GCEO pic.twitter.com/i8EGzrXE3S

— FAB Connects (@FABConnects) February 28, 2023

“We have strategically expanded our global footprint as a key differentiator for FAB, adding representation in new markets to reinforce our role as a trusted partner for clients,” she said while highlighting that the bank offers cross-border trade, investment and liquidity flows in the region’s largest markets such as Egypt.

Sustainability has become a topic of crucial importance for many corporations including financial institutions and McKinsey projected in October 2022 that revenue from sustainable trade finance and cash management products will grow as much as 20 per cent annually to around $35bn by 2025.

The bank joined the Net-Zero Banking Alliance, a sub-unit of the Glasgow Financial Alliance for Net Zero, becoming the first UAE and GCC bank to join the alliance.

FAB’s robust growth

The UAE’s biggest bank by assets reported a 7 per cent increase in 2022 net profit to $3.6bn (Dhs13.4bn) after the lender’s “core businesses sustained positive momentum, resulting in double-digit growth in loans and deposits”.

Read: First Abu Dhabi Bank reports highest ever net profit in 2022

The bank’s income soared by 10 per cent, driven by a 23 per cent growth in net interest income and gain on the sale of a majority stake in payments business Magnati.

FAB offloaded a 60 per cent stake in Magnati to Brookfield Business Partners in February 2022, a deal that valued the payment firm at Dhs4.2bn. The bank’s Egyptian business was rebranded as ‘FABMISR’ following the completion of its merger with Bank Audi Egypt in June 2022.

FABMISR is one of the largest foreign banks operating in Egypt with more than $10bn in assets, 69 branches and 207 ATMs as of March 31, 2022. With more than Dhs1.1tn in total assets as of December 31, 2022, FAB continues to expand its global footprint with the addition of representation offices.

The banking group has a market capitalisation of Dhs155.3bn as of March 1. The bank’s board of directors has also approved the distribution of Dhs0.52 as a cash dividend for the financial year ended December 31, 2022, implying total cash dividends of Dhs5.74bn.