Thursday 20, April 2017 by Jessica Combes

Pro-forma Group net profit increases 12.4 per cent to AED 2.93 Billion

 

NBAD and FGB reported a pro-forma Group net profit of AED 2.93 billion for the first quarter of 2017, a 12.4 per cent increase from AED 2.6 billion for the same period last year.  

 

These results were achieved on the back of a healthy operating performance driven by higher business volumes and investment gains, coupled with disciplined risk management and the realisation of cost synergies in relation to the merger between the two banks.

 

“With the merger of FGB and NBAD now effective, we are starting First Abu Dhabi Bank’s journey on a solid footing thanks to robust fundamentals at the end of Q1 2017, positioning us well to successfully execute our integration plan. We have already achieved a number of key milestones since the completion of the merger, which is a strong testament to the exceptional merits of bringing two highly complementary businesses together, as we already began to draw on our combined strengths and realise synergies for the benefit of all our stakeholders,” said Abdulhamid Saeed, Group CEO of the combined bank.

 

He added that the combined bank delivered a good set of results in the first quarter of 2017, in spite of challenging operating conditions. Pro-forma Group net profit increased by 12.4 per cent from last year, driven by healthy activity across various businesses, and saw notable improvements in efficiency and asset quality. The Group’s liquidity profile has strengthened and its capital position is robust with CET1 ratio of 14.7 per cent which places us in a positive standing to comply with the Basel III regulatory framework. The affirmation of the Group’s AA-, Aa3 and AA- credit ratings by Fitch, Moody’s and Standard & Poor’s, respectively, is also a key milestone for the new bank, recognising its strong credit profile and unique ability to navigate the evolving economic, banking and regulatory landscape.


The first quarter of 2017 witnessed major preparation work for CIB ahead of merger completion, driven by a core philosophy revolving around building specialisation, synergy and service.

 

The CIB architecture has been finalised and is centred around putting customers at the core of the model built on coverage for corporates and for financial institutions by geographies with proper business segmentation and dedicated relationship managers.

 

Products specialisation is split into four areas, namely: Global Transaction Banking, Global Corporate Finance, Global Markets as well as a window for Islamic Banking. Customers are serviced across geographies, locally and internationally, as well as across a comprehensive range of product offerings. Teams across CIB cooperated together on several landmark transactions during the quarter.

 

During the first quarter of 2017, the Personal Banking Group teams at both banks continued with intensive preparations for legal merger completion, addressing all necessary changes across all customer touch points to ensure clarity, security and the seamless continuation of services–the key guiding principle being minimum disruptions to customers.

 

Significant progress has been achieved on customer segmentation, including value propositions, product harmonisation and end-state product offerings. To maximise business potential and market reach, PB is structured along the major customer segments, spanning from Mass Market to Private Banking and Business Banking segments.

 

Assessment of sales and distribution channels, with initial view on end-state coverage and capacities has been performed, while execution is in progress with initial synergies being already delivered according to the plan. Further due diligence is scheduled, especially for digital channels, to be conducted later in the next two quarters.

 

Customers, from 1 April, have been availing free transactions across more than 500 ATMs throughout the UAE as well as unified branch services in one branch each, in Dubai and Abu Dhabi. 

 

“While 2017 is poised to be a transitional year for the economy and for the banking industry, we are looking ahead with confidence and a clear focus on driving individual and institutional prosperity by putting our customers first, as we continue to deliver an extensive range of fully personalised solutions, products and services to meet their needs. Over the next few months in our integration journey, we will be focusing on establishing a strong platform across our various businesses to ensure that we have the right infrastructure to deliver a harmonised banking offering across our various channels. As the largest bank in the UAE and one of the world’s largest and strongest financial institutions, we are firmly on track to move forward and pursue growth opportunities across UAE, MENA region and beyond. At our upcoming General Assembly Meeting on 24th of April, we will be proposing to change the name of our institution to “First Abu Dhabi Bank”–a name that embodies the UAE’s vision for growth and prosperity, whilst reconfirming our commitment to driving top shareholder value as a financial services leader,” said Saeed.

 

 

  

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