First Abu Dhabi Bank announced today its financial results for the first half of June 30, 2020. The bank’s net profit reached 4.8 billion dirhams during the first six months of this year, a decrease of 24% compared to 6.3 billion dirhams in the first half of 2019, as a result Increase in provisions for impairment, lower revenue and cost. The bank strengthened balance sheet, liquidity and capital ratios during this period, and saw good indicators of asset quality. The bank also continued to benefit from its leading position and expansion of its business to provide support to clients within the framework of the comprehensive economic support plan launched by the central bank, and the programs and support initiatives of the bank.
First Abu Dhabi Bank continued to record strong results in light of the unprecedented global economic conditions as a result of the spread of the Corona virus (Covid-19), low interest rates, and future market conditions; The bank recorded a net profit of 2.4 billion dirhams in the second quarter of 2020 thanks to the flexibility that characterizes the bank, which is the same rate recorded by the group during the first quarter, where high costs of impairment were offset by revenue growth and cost management initiatives.
The value of the return on the annual basic share was 0.84 dirhams, compared to 1.12 dirhams during the same period in 2019. The value of operating revenues amounted to 9.4 billion dirhams during the first half, compared to 10.1 billion dirhams during the first half of 2019. The value of operating costs was 2.6 One billion dirhams, a decrease of 3% compared to the same period in 2019.
Provisions for impairment increased to reach 1.8 billion dirhams, reflecting the current economic challenges, which led to an increase in the cost of annual risks to 87 basis points compared to 49 basis points during the first half of 2019
The bank maintained strong liquidity, capital ratios and asset quality. Total assets reached 866 billion dirhams, an increase of 12% compared to the second quarter of 2019. Loans and advances amounted to 385 billion dirhams, an increase of 5% compared to the second quarter of 2019 and 1% since the end of March 2020. While deposits amounted to Customers reached 519 billion dirhams, an increase of 12% compared to the second quarter of 2019, and 4% since the end of March 2020, current account deposits and savings accounts recorded record levels, reaching 196 billion dirhams. The non-performing loan rate was 3.9%, while the coverage coverage ratio was 91%.
Commenting on this, Andre Sayegh, CEO of First Abu Dhabi Bank Group said: “First Abu Dhabi Bank performed well during the first half of 2020 in light of the unprecedented challenges that the world is witnessing. Thanks to the strategic measures we adopted, we were able to boost our balance sheet in conjunction with achieving A good level of customer deposits, which reflects the distinguished position that First Abu Dhabi Bank enjoys in terms of its ability to achieve distinct levels of liquidity at the regional and international levels, and the transition to a level of security under the current market conditions. The capitalization rates maintained their strength and exceeded the regulatory requirements until With the start of the repayment of the additional bonds for the first part of the capital in June, this is the best evidence of our long-term commitment to investors at the international level.
He added, "During the second quarter of 2020, First Abu Dhabi Bank focused on providing financial support to our customers in line with the comprehensive economic support plan launched by the UAE Central Bank, as well as through the bank's initiatives, ensuring optimal lending and managing prudent risk. We will continue our commitment to Our customers and the local economy during these exceptional circumstances. "