First Abu Dhabi Bank (FAB), one of the UAE’s largest banks, said it had delivered a resilient performance in a transitional year with a group net profit of Dh10.9 billion ($2.96 billion) for the full year ended December 31, 2017 compared to Dh11.32 billion the previous year.

Announcing the results, FAB said the adjusted group net profit - excluding integration costs and merger-related amortisation of intangibles, totalling Dh601 million in 2017 - at Dh11.52 billion, broadly in line with 2016.

Group Revenues were four per cent lower year-on-year mainly reflecting softer market conditions, and the Bank’s focus on portfolio optimisation to enhance risk-adjusted returns.

This was offset by lower impairment charges compared to 2016, as well as disciplined cost control and the realisation of substantial synergies related to the merger.

Commenting on the results, Sheikh Tahnoun bin Zayed Al Nahyan, National Security Adviser and Chairman of FAB, said: "FAB’s 2017 financial results are a clear testament to the sound rationale behind the merger and clearly demonstrate that it was a well-planned and strategic decision, based on solid forward-looking, market perspective and insights."

"Our merger, which was officially inaugurated in early 2017, created the UAE’s largest bank, with the aim of actively supporting the UAE’s economy, through combining the solid expertise and strengths of both legacy banks," stated Sheikh Tahnoun.

He said that at the end of its first year, FAB has created significant value for its shareholders, customers and employees despite challenging market conditions.

"Reflecting FAB’s continued focus on delivering top shareholder returns, the bank’s Board of Directors has recommended the distribution of a cash dividend of Dh0.70 per share for the financial year ended December 31, 2017," he noted.

This implies total cash dividends of Dh7.6 billion for FAB’s first year, up 11 percent compared to 2016, he added.

Group CEO Abdulhamid Saeed said: "We are proud to announce that FAB has achieved a resilient set of results in its first year, as the largest bank in the UAE."

"Our adjusted net profit for 2017, excluding integration costs and merger-related amortisation of intangibles, totalling Dh601 million in 2017, amounted to Dh 11.52 billion, in line with the combined profit of both legacy banks in 2016, despite a challenging global operating environment," he added.-TradeArabia News Service