MANAGEMENT DISCUSSION &
ANALYSIS REPORT
FOR THE NINE MONTH PERIOD
ENDED 30 SEPTEMBER 2022
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FABf
First Abu Dhabi BankFAB reports Group Net Profit of AED 10.9 Billion
for the first nine months of 2022, up 19% year-on-year
Third quarter net profit at AED 2.9 Billion, up 1% sequentially, up 12% on underlying1 basis
“Our results in the first nine months of 2022 demonstrate excellent strategic progress with the Group
delivering record revenue and net profit, and with our core businesses sustaining their positive
momentum in the third quarter as they continue to capitalise on a favourable regional backdrop. With
our robust fundamentals and strategic focus, we remain very well placed to deliver market-leading
shareholder returns while being an engine for the region’s economic growth and diversification.”
Hana Al Rostamani
Group Chief Executive Officer
9M'22 Key Performance Indicators
Total Income Earnings Per Share2 Return on Tangible Return on RWA2 CET1 ratio Liquidity
Equity2 Coverage Ratio
AED 18.0 Bn AED 1.29 17.5% 2.5% 13.1% 171%
+13% vs. 9M’21 Sep'21: 13.0%
Profitability supported by revenue growth in a rising rate environment, and lower
provision charges; cost discipline maintained while continuing to invest in the
business
9M’22 highlights:
• Group Net Profit at AED 10.9 Billion, up 19% yoy; annualised Earnings per Share at AED 1.29
• Total Income at AED 18.0 Billion, up 13% yoy, driven by 18% growth in net interest income. Total income for the nine-
month period includes AED 3.1 Billion net gain on sale of stake in Magnati
• Impairment charges (net) at AED 1.7 Billion, 11% lower yoy; implying an annualised cost of risk at 52 basis points
improving from 65bps in the prior period
• Operating costs at AED 4.7 Billion, up 6% yoy excluding Bank Audi Egypt inclusion, reflect ongoing investments to
drive growth and transformation
Q3’22 highlights:
• Group Net Profit at AED 2.9 Billion, up 12% qoq excluding gains recorded in Q2’22 from sale of stake in Magnati
• Operating income at AED 5.5 Billion, up 10% qoq driven by, both, higher interest and non-interest income
• Impairment charges (net) at AED 694 Million, 13% lower yoy, up 19% qoq as we continue to strengthen our
provision buffers
• Operating costs at AED 1.6 Billion, up 1% qoq and 1% yoy
1 Underlying income / profits exclude real estate gains/losses and gain on sale of stake in Magnati
2 Annualised
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 2Balance sheet growth sustained through lending momentum and sizeable deposit
inflows; foundation remains robust across all key metrics
• Loans, advances and Islamic financing at AED 465 Billion, up 2% sequentially and 14% year-to-date
• Customer deposits at AED 746 Billion, up 15% sequentially and 21% ytd with CASA balances increased further to
AED 300 Billion, up 3% qoq and 4% ytd
• Liquidity Coverage Ratio (LCR) at 171% reflects the strong inflows and a robust liquidity position
• Improved asset quality metrics with NPL ratio and provision coverage at 3.4% and 103%, respectively
• Common Equity Tier 1 (CET1) at 13.1%, improved 48bps in the quarter on continued RWA optimisation initiatives
and internal capital generation
“Our results in the first nine months of 2022 demonstrate excellent
progress in our strategy to drive growth across our franchise, while
underlining the resilience of regional economies against an
increasingly challenging global backdrop.
We produced a record net profit of AED 10.9 Billion, up 19% from
the same period last year, reflecting the strong underlying
performance of our core businesses. Our robust balance sheet
fundamentals are enabling us to pursue our growth and
transformation journey, both, regionally and in the UAE. In Egypt,
we have completed our integration activities which will enable us to
HANA AL ROSTAMANI
unlock new opportunities for our growing base in one of our priority
GROUP CHIEF EXECUTIVE OFFICER
markets.
With structural market shifts and increasingly sophisticated client needs continuing to shape our focus, we are proud to
reaffirm our regional leadership position as a trusted advisor to our clients while also delivering a digital-first, best-in-
class offering to customers.
FAB continues to be recognised as the Middle East’s safest bank while also improving our ranking as the 14th safest
commercial bank in the world. This is an important recognition of our long-term adherence to the strongest standards of
safety and stability.
Our commitment to sustainability continues to underline everything we do and as the attention of the world turns to
COP27, we are proud to be a part of the progress by working towards a Net Zero future.
Looking ahead, the increasingly challenging global backdrop calls for caution, with recessionary risks looming over several
economies. As we navigate these headwinds, we are nevertheless confident in the resilience of this region, and we remain
very well placed to deliver market-leading shareholder returns while being an engine for the region’s economic growth
and diversification.”
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 3“The Group generated a net profit of AED 2.9 Billion in the third
quarter of 2022, up 12% sequentially on an underlying basis,
bringing bottom line for the nine-month period to a record AED 10.9
Billion.
Underlying operating performance continues to be strong with
Q3’22 revenue up 10% sequentially, supported by positive
momentum across core businesses, increased client flow and cross-
sell in Global Markets, and the impact of higher interest rates as we
continue to significantly benefit from the shift in the rates cycle.
JAMES BURDETT During the period, our strategic initiatives led to continued growth in
GROUP CHIEF FINANCIAL OFFICER CASA balances with nearly AED 100 Billion customer deposit inflows
underlining our unique role as an aggregator of liquidity. Group
liquidity position strengthened with Group LCR at 171%, while Group
CET1 improved sequentially to 13.1%, owing to strong capital
generation and the positive outcome of our ongoing efforts to
optimise risk-weighted assets.
The recent reaffirmation of our AA- credit rating by Fitch is a strong testament to our superior business and credit profile,
and our robust fundamentals.
We remain focused on maintaining balance sheet strength to deliver on our strategic priorities to drive growth,
transformation, and to deliver superior shareholder returns in 2022 and beyond.”
ECONOMIC OVERVIEW AND OUTLOOK
In Q3’22, global markets continued to be under significant downward pressure, as inflation remained near multi-decade highs
and geopolitical tensions escalated further. This led to a sharp rise in bond yields and sell-off in equities towards the latter
part of the quarter as financial markets priced in a more hawkish trajectory for policy rates with major central banks reiterating
their aggressive stance on bringing inflation under control.
In contrast, the UAE economy is expected to register its highest real GDP growth in over a decade buoyed by higher oil output,
relatively moderate inflation, recovery across key economic sectors including real estate and tourism, and ongoing structural
reforms to drive economic growth and diversification. The underlying strength of the UAE economy was also highlighted by
the highest quarterly average levels of PMI registered in over 3 years, during the quarter. Our forecast for UAE real GDP growth
in FY’22e is 6.7% (vs a previous expectation of 5.7%), consolidating to around 5.0% for FY’23e. Moreover, the robust nature
of the UAE and Abu Dhabi government’s balance sheet are expected to lead to a return to fiscal surplus status in FY’22e and
FY’23e. Although not immune to global headwinds, we believe economic activity in the UAE and broader GCC region will
continue to outperform the global backdrop.
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 4Q3/ 9M’22 SUMMARY FINANCIALS
Income statement - summary (AED Mn) Q3'22 Q2'22 QoQ % Q3'21 YoY % 9M'22 9M’21 YoY %
Net interest income 3,653 3,390 8 3,141 16 10,177 8,622 18
Non-interest income 1,841 1,587 16 3,270 (44) 4,751 7,363 (35)
Operating income 5,494 4,977 10 6,411 (14) 14,929 15,986 (7)
Gain on Magnati stake sale
- 288 na - na 3,094 - na
(incl fair valuation of retained interest)
Total Income 5,494 5,265 4 6,411 (14) 18,022 15,986 13
Operating expenses (1,601) (1,589) 1 (1,587) 1 (4,705) (4,357) 8
Operating profit 3,893 3,677 6 4,824 (19) 13,318 11,629 15
Impairment charges, net (694) (582) 19 (796) (13) (1,733) (1,943) (11)
Non-controlling interests and taxes (276) (189) 46 (175) 58 (636) (478) 33
Net Profit 2,923 2,906 1 3,854 (24) 10,949 9,207 19
Basic Earnings per Share (AED) 1.00 1.03 (2) 1.35 (26) 1.29 1.08 19
Balance sheet - summary (AED Bn) Sep'22 Jun'22 QoQ % Sep'21 YoY% Dec’21 Ytd%
Loans, advances & Islamic financing 465 459 2 403 15 410 14
Investments 198 186 6 190 4 191 3
Customer deposits 746 648 15 606 23 615 21
CASA (deposits) 300 291 3 272 11 288 4
Total assets 1,146 1,042 10 984 17 1,001 15
Equity (incl Tier 1 capital notes) 112 111 1 109 3 113 (0)
Tangible equity 81 80 2 78 4 82 (0)
Risk-weighted assets 584 595 -2 573 2 579 1
QoQ YoY YoY
Key Ratios (%) Q3'22 Q2'22 Q3'21 9M'22 9M'21
(bps) (bps) (bps)
Net interest margin (NIM) 1.50 1.57 (7) 1.56 (6) 1.53 1.52 1
Cost-income ratio (ex-integration costs) 28.7 31.2 (254) 24.2 446 30.9 26.7 420
Cost of risk (bps)
60 52 8 81 (20) 52 65 (12)
(loans, advances & Islamic financing)
Non-performing loans ratio 3.4 3.6 (14) 3.9 (52) 3.4 3.9 (52)
Provision coverage 103 100 305 101 136 103 101 136
Liquidity coverage ratio (LCR) 171 135 large 124 large 171 124 large
Return on tangible equity (RoTE) 13.8 14.1 (28) 19.7 (587) 17.5 15.3 220
Return on risk-weighted assets (RoRWA) 2.0 2.0 (1) 2.7 (77) 2.5 2.3 23
CET1 ratio 13.1 12.6 48 13.0 15 13.1 13.0 15
Capital adequacy ratio 16.1 15.6 52 15.9 16 16.1 15.9 16
Notes:
• Cost-income ratio for 9M’22 and the quarters in 2022 excludes Magnati-related gains booked during 2022
• Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the consolidated financial statements
• Ratios for the quarter are annualised, where applicable
• For further details on calculation of the ratios, please see the Quarterly Series on FAB IR website's financial reports page
• To view key figures in USD, please refer to: bankfab.com > investor relations > reports & presentations > key quarterly figures
• These results include financials of Bank Audi Egypt (BAE) effective post legal day 1 on 28 April 2021. As a result of the purchase price allocation (PPA) exercise, the 2021 comparative information has been
restated to reflect the adjustments to the assumed carrying amounts. Refer to note #32 in the financials for the period ended 30 September 2022.
• Rounding differences may appear in above table
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 5OPERATING PERFORMANCE
Operating income (AED Mn) Q3'22 Q2'22 QoQ % Q3'21 YoY % 9M'22 9M'21 YoY %
Net interest income 3,653 3,390 8 3,141 16 10,177 8,622 18
Non-interest income 1,841 1,587 16 3,270 (44) 4,751 7,363 (35)
Fees & commissions, net 624 699 (11) 696 (10) 2,098 2,128 (1)
FX and investment income, net 1,192 828 44 2,380 (50) 2,485 4,675 (47)
Other non-interest income 26 60 (57) 194 (87) 168 561 (70)
Total operating income 5,494 4,977 10 6,411 (14) 14,929 15,986 (7)
Operating income for the nine-month period ended 30 September 2022 (9M’22) was AED 14.9 Billion, lower by 7% year-on-
year or by 4% on an underlying basis due to exceptional trading gains in 2021 which were not repeated. For the third quarter
ended 30 September 2022 (Q3’22), operating income was AED 5.5 Billion, up 10% sequentially, led by higher net interest and
non-interest income.
Net Interest Income (including Islamic financing income) (NII) was AED 10.2 Billion in 9M’22, up 18% year-on-year, reflecting
the benefits from strong business volumes, higher interest rates and the positive impact of the inclusion of Bank Audi Egypt
(BAE). Although net interest income for Q3’22 was up 8% sequentially, calculated NIM was 1.50%, lower sequentially, as
interest rate tailwinds were offset by the dilutive effect of higher short-term placements with central banks. Net Interest
Margin (NIM) for the nine-month period in 2022 was 1.53% compared to 1.52% in 9M’21.
Fees & Commissions at AED 2.1 Billion in 9M’22, are broadly flat year-on-year, yet up 11% when excluding the impact of
deconsolidation of Magnati in Q1’22. This was led by double-digit growth in loan-related fees on strong volumes and pipeline
execution in Investment Banking (IB) and Corporate and Commercial Banking (CCB). Q3’22 fees and commissions were lower
by 11% sequentially primarily due to a stronger prior quarter in IB & CCB on loan-related and advisory fees, partially offset
by higher fees in Consumer Banking (CB) led by credit cards.
FX and investment income improved 44% sequentially in Q3’22, driven by increased client flow and cross-sell in Global
Markets as well as opportunistic trading gains during the period. 9M’22 FX and investment income was 47% lower year-on-
year due to exceptional trading performance in 2021 which was not repeated.
Other non-interest income was lower in 9M’22 as compared to prior year period primarily due to real estate gains in 9M’21
which did not recur in 2022.
Overall, non-interest income stood at AED 4.8 Billion in 9M’22, contributing 32% to operating income.
Operating expenses excluding BAE and integration-related expenses, were up 1% sequentially in Q3’22 and up 6% year-on-
year in 9M’22, reflecting disciplined expense management amidst ongoing investments in strategic and digital initiatives to
drive growth and transformation, and to build a future-proof bank. The Group’s cost-to-income ratio excluding Magnati-
related gains improved to 30.9% in 9M’22 (32.2% in H1’22).
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 6ASSET QUALITY
Non-Performing Loans decreased 3% in Q3'22 to AED 16.3 Billion as of September-end 2022 reflecting subdued gross NPL formation
and write-offs. NPL ratio improved to 3.4% from 3.6% at the end of the previous quarter, further helped by higher loan balances.
Net impairment charges were AED 1.7 Billion in 9M’22, lower by 11% year-on-year. They were up by 19% sequentially in Q3’22 to
AED 694 Million as we continue to build up provision buffers amidst volatile global market conditions. Consequently, total ECL/
provisions3 increased to AED 16.8 Billion with provision coverage ratio improving to 103% (vs 100% at June-end 2022). Annualised
cost of risk stood at 52 basis points as compared to 65 basis points in 9M’21 and well below FY’22 guidance.
BALANCE SHEET TRENDS
Total assets grew 10% sequentially and 15% year-to-date to over AED 1.1 Trillion led by lending growth and sizeable deposit inflows
which were largely placed with central banks.
Loans, advances and Islamic financing (net) were AED 465 Billion, up 14% year-to-date (+AED 56 Billion) marking record lending
growth for the Group over any previous nine-month period reflecting healthy pipeline execution driven by core corporate clients
and government and government entities in the UAE. Loan growth remained positive in Q3’22, up 2% sequentially, driven by
increased trade-related lending offsetting several repayments during the quarter.
Customer deposits added AED 98 Billion (+15% sequentially) during the quarter to reach AED 746 Billion, on healthy inflows
reflecting FAB’s role as an aggregator of liquidity and as the primary banker to the Government of Abu Dhabi and its related
entities. CASA balances continued to grow in Q3’22 to reach AED 300 Billion, driven by new cash management mandates and
strategic initiatives.
The Group’s liquidity position remained strong with September-end 2022 Liquidity Coverage Ratio (LCR) at 171% as compared
to 134% at December-end 2021, comfortably in excess of the Basel III minimum regulatory requirement of 100%.
FAB has raised AED 8.1 Billion (USD 2.2 Billion equivalent) of senior wholesale funding in the nine-month period ending 30
September 2022 at a competitive pricing across multiple formats, successfully navigating extremely volatile markets on the back
of concerns around inflation, rates and recession. In early October, FAB further issued a USD 700 Million 5-year public green
bond, which is FAB’s third public green bond in 2022 and the largest ever Green Bond issuance by a MENA bank.
The Group continued to focus on its Green and Sustainable-linked funding activity by issuing USD 1.5 Billion equivalent in Green
format year-to-date across both public and private transactions. FAB remains a regional and global leader in the Green Bond
market with Green Bonds outstanding of over USD 2.25 Billion equivalent across 13 issuances and 5 different currencies.
EQUITY, CAPITAL AND RETURNS
Total shareholders’ equity (including Tier 1 capital notes) at AED 112 Billion was up 1% sequentially. Basel III Common Equity Tier 1
(CET1) ratio improved 48bps sequentially to 13.1%, driven by profit accretion and risk optimisation initiatives, partially offset by
adverse movements in fair value reserves on the investment portfolio due to market volatility. Group CET1 stands comfortably
above the minimum regulatory requirement of 11%. Capital adequacy and Tier 1 capital ratios were 16.1% and 15.0% as of
September-end 2022, versus 15.6% and 14.5% respectively as of June-end 2022 and 15.4% and 14.3% respectively, as of
December-end 2021.
Annualised Return on Tangible Equity (RoTE) and Return on Risk Weighted Assets (RoRWA) improved to 17.5% and 2.5% for
9M’22, compared to 15.3% and 2.3% respectively for 9M’21. Underlying RoTE, excluding Magnati-related capital gains, was
12.4% for (9M’22).
3 ECL/Provisions are defined as ECL on loans, advances and Islamic financing + ECL on unfunded exposures + IFRS9 impairment reserves
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 7BUSINESS PERFORMANCE4
AED Mn Q3'22 Q2'22 QoQ % Q3'21 YoY % 9M'22 9M'21 YoY %
9M'22
Contr%
Operating income 5,494 4,977 10 6,411 (14) 14,929 15,986 (7) 100%
Operating income by business segment
Investment Banking (IB) 2,337 2,135 9 3,643 (36) 6,346 8,453 (25) 43%
Corporate & Commercial Banking (CCB) 1,300 1,204 8 933 39 3,544 2,554 39 24%
Consumer Banking (CB) * 1,076 1,109 (3) 1,251 (14) 3,240 3,637 (11) 22%
Global Private Banking (GPB) 276 247 12 232 19 762 715 6 5%
Head Office (HO) 504 282 79 352 43 1,038 627 66 7%
Operating income by geography
UAE 4,392 3,914 12 5,458 (20) 11,697 13,236 (12) 78%
International 1,101 1,063 4 953 16 3,232 2,750 18 22%
* excludes gain on Magnati stake sale
INVESTMENT BANKING (IB)
• The operating environment in Q3’22 continued to remain challenging with aggressive policy rate hikes by central banks’
globally and recessionary fears keeping global financial markets volatile, albeit regional markets faring relatively better. IB’s
operating income in Q3’22 improved 9% sequentially to AED 2.3 Billion driven by robust Global Market (GM) sales and
opportunistic trading gains in our investments book. 9M’22 operating income is lower by 25% year-on-year primarily due to
the exceptional trading performance in 2021, partially offset by a 10% increase in net interest income.
• Although 1% lower sequentially due to repayments, net loans are up 5% year-to-date driven by healthy demand from
government and other related entities. Liquidity position remains very strong with customer deposits adding AED 96 Billion
or up 23% sequentially to AED 505 Billion. CASA balances at AED 132 Billion, up 9% sequentially in Q3’22 and up 29% year-
to-date in 9M’22, have continued to grow every quarter this year despite the increases in interest rates, significantly
benefitting net interest income.
▪ FAB continues to reaffirm its dominant position among regional banks with top rankings across MENA IB league tables in
9M’22 as #1 Agent Bank, #1 Loan Bookrunner and #4 DCM.
▪ In line with our strategic focus to help our clients navigate the energy transition, FAB facilitated approximately USD 4.7 Billion
equivalent of sustainable financing across Green Loans, Sustainability-linked Loans and Green Bonds during the first nine-
months of 2022. This included key deals with a Dubai-based retail conglomerate for USD 1.25 Billion sustainability-linked loan
and a USD 300 Million green project financing for an Abu Dhabi-based renewable energy behemoth. The business is optimistic
on the outlook for such financing given the strong pipeline ahead.
▪ Ongoing market volatility bodes well for the strong momentum witnessed in Global Market sales revenue increasing 17%
sequentially in Q3’22 and 19% in 9M’22. During the quarter, GM completed its first carbon trade in the form of a “cash and
carry” EAU (European Union Allowance for Carbon Credit), with strong potential to provide new opportunities for our clients
looking to trade in this instrument.
4 In the second quarter of 2021, the Group had reorganised its business model. Corporate & Investment Banking and Personal Banking Groups have been re-segmented into
four distinct business lines: Investment Banking (IB), Corporate & Commercial Banking (CCB), Consumer Banking (CB) and Global Private Banking (PB). Figures for prior periods
have been re-based on the current business segments for comparison purposes. Please refer to IR Quarterly Series for segmental information on a quarterly basis since
beginning of 2021.
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 8CORPORATE AND COMMERCIAL BANKING (CCB)
• Operating income grew 8% sequentially to AED 1.3 Billion and 39% year-on-year to AED 3.5 Billion driven by strong volume
growth and rising interest rates.
• Net interest income improved 26% sequentially in Q3’22 and 45% year-on-year in 9M’22. Non-interest income was 27%
higher on year-on-year basis in 9M’22, led by growth in loan-related fees and strong Global Market sales across FX and
derivatives although Q3’22 came in lower by 28% sequentially due to a stronger comparative period.
▪ Balance sheet growth has been strong through the year with loans at AED 156 Billion up a further 8% in Q3’22 bringing the
year-to-date growth to 42%. This reflects strong demand by top-tier clients in UAE and the execution of healthy pipeline by
the business.
▪ Customer deposits were down 3% sequentially and 12% year-to-date as customers look to enhance their yields with increase
in interest rates.
• Other key highlights for the quarter include:
o Successfully launched E-commerce Financing Program (ECF) in collaboration with a leading e-commerce platform to
provide customized Working Capital & term loan lending solution for its clients
o Strategic collaborations and partnerships to advance several areas including banking-as-a-service, inventory financing,
treasury management and sustainability-linked supply chain finance (S–SCF) solutions
o FAB was awarded the UAE’s Domestic Cash Management of the Year and UAE’s Domestic SWIFT Initiative of the Year
at the 2022 ABF (Asian Banking and Finance) wholesale banking awards
CONSUMER BANKING (CB)
• Profitability improved 31% sequentially in Q3’22 and 9% year-on-year in 9M’22 helped by lower impairment charges
reflecting an improved macro environment, coupled with cost discipline and digital costs savings. Q3’22 fees and commissions
were higher as credit cards fees and FX income rose sequentially. 9M’22 operating income reached AED 3.2 Billion, lower
year-on-year, primarily due to deconsolidation of Magnati earlier this year.
• Customer deposits grew AED 10 Billion or 17% year-to-date to AED 68 Billion underlining our strategic focus on attracting
CASA. Customer loans and advances grew 5% year-to-date to AED 66 Billion, driven by strong sales momentum year-on-year
across various products including new-to-bank credit cards (+26% yoy), residential mortgages (+19% yoy) and personal loans
(+7% yoy).
• Customer offerings and interactions continued to be transformed through deployment of digital technologies. New digital
credit card partnership journeys were launched with Al Futtaim and Du. Adoption of digital tools by the salesforce facilitated
opening of 78% of new CASA and 54% of credit cards via digital processes in the month of September. Additionally, a new
digital building management solution was launched for National Housing Loan customers and contractors.
• During the quarter, FAB was awarded the Best Consumer Digital Bank in the UAE at the 2022 Global Finance Awards.
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 9GLOBAL PRIVATE BANKING (GPB)
• Operating income improved 12% sequentially in Q3’22 and 6% year-on-year in 9M’22 from higher net interest income driven
by higher rates. Non-interest income increased 15% sequentially in Q3’22 primarily driven by increased cross-sell of Global
Markets products to GPB clients, while 18% year-on-year growth in 9M’22 was driven by higher asset management fees from
increased AUMs, and a rise in lending fees as clients actively participated in the vibrant UAE IPO market.
• Q3’22 loans were lower by 10% sequentially to AED 26 Billion as Q2’22 balances included short-term leverage loans related
to IPO trades. Customer deposits, on the other hand, were up 10% sequentially and 24% year-to-date, leveraging FAB’s
superior credit profile to attract liquidity from new and existing customers looking to preserve cash in volatile and challenging
market conditions.
• During the period, GPB launched its ‘FAB Thematic Rotation Fund’, through which investors will have access to global
investment opportunities across themes and trends arising from long-term structural changes, called Megatrends, shaping
the world of tomorrow: Technology Innovation, Rising Urbanization, Environmental Changes, Next Gen Economies, and
Demographic Shift, as defined by the Trackinsight Thematic Taxonomy. In line with our strategy to provide clients’ access to
“private markets”, FAB partnered with Blackrock, the world’s largest asset manager, to launch the Global Credit Opportunities
Fund II in September.
• The business continues to focus on enhancing the breadth of its products and services through strategic partnerships and
digitalisation of processes, buoyed further by continued service excellence for our clients amidst turbulent markets.
Additionally, FAB Global Private Banking was awarded the Best Family Office Service and Best Discretionary Portfolio
Management (DPM) at the Wealth and Investment Awards 2022 organised by MEA Finance.
INTERNATIONAL OPERATIONS
• Operating income improved 18% year-on-year to AED 3.2 Billion in 9M’22 primarily driven by the inclusion of Bank Audi Egypt
and complemented by revenue growth in other GCC markets like Oman and Bahrain, and Singapore in Asia. Q3’22 operating
income also improved by 4% sequentially to AED 1.1 Billion from increased contribution by BAE. Revenue from international
operations represents 22% of 9M’22 Group operating income (compared to 17% in 9M’21). Revenue contribution from
MENA (ex-UAE) increased to 58% in 9M’22 from 50% in 9M’21.
• Higher impairment charges of AED 591 Million in 9M’22 from AED 267 Million in 9M’21 reflects the de-risking of our portfolio
in non-strategic assets.
• Loans, advances and Islamic financing were AED 104 Billion, lower sequentially by 2% on a few repayments in Saudi Arabia,
while being 1% lower year-to-date as growth in Saudi Arabia and Egypt was offset by deliberate reductions in non-strategic
assets. Customer deposits increased 2% sequentially to AED 171 Billion, although were lower by 1% year-to-date partly due
to depreciation in GBP and adverse movement in other currencies.
• Our International operations remain a key contributor to the Group’s liquidity with International loans and deposits
representing 22% and 23% of Group loans and deposits, respectively.
• In Egypt, the completion of our integration activities will enable us to offer a unified customer experience to our growing base
in one of our priority markets. Our new brand “FABMisr” reflects FAB’s strong commitment to the Egyptian market leveraging
greater scale and market-leading capabilities to create considerable opportunities for customers.
James Burdett,
Group Chief Financial Officer
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 10ABOUT FIRST ABU DHABI BANK (FAB)
FAB is the UAE’s largest bank and one of the world’s largest and safest financial institutions. FAB’s focus is to create value for its
employees, customers, shareholders and communities to grow through differentiation, agility and innovation.
Headquartered in Abu Dhabi, the bank’s international network spans five continents, providing global relationships, expertise and
financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is a
trusted adviser and regional partner to major institutions, emerging companies a nd individuals seeking to do business in the
UAE, the MENA region and beyond. As an engine of growth for the region, it helps customers to thrive and grow stronger
by managing risk, providing access to capital and facilitating trade flows across developed and emerging markets.
With total assets of over AED 1.1 Trillion (USD 312 Billion) as of September-end 2022, FAB is rated Aa3/AA-/AA- by Moody’s,
S&P and Fitch, respectively - the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global
Finance as the Safest Bank in the UAE and the Middle East since 2011, and #31 Safest Bank globally in 2022. The Banker’s Top
1000 World Banks 2021 rankings, measured by Tier 1 capital, ranked FAB as #1 in the UAE, #3 in the Middle East and #91 across
the globe. FAB is also a regional sustainability leader (MSCI ESG rating of AA, ‘Leader’ category), and a constituent of MSCI
ESG Leaders and FTSE4Good EM indices.
For further information, visit: www.bankfab.com.
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Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT 11RECENT ACCOLADES
Disclaimer
The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”). FAB relies on information obtained from sources believed to be reliable but doesnot guarantee its accuracy or
completeness.
This document has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it
or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.
Some of the information in this document may contain projections or other forward-looking statements regarding future events or the future financial performance of FAB. These forward-looking
statements include all matters that are not historical facts. The inclusion of such forward-looking information shall not be regarded as a representationof FAB, or any other person involved in the objectives
or plans of FAB will be achieved. FAB undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Q3/9M '22 MANAGEMENT DISCUSSION & ANALYSIS REPORT

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