Tear Sheet: First Abu Dhabi Bank PJSC

Furthermore it sought to optimize its capital structure placing a $1 billion Tier 2 bond, which resulted in a total capital adequacy ratio of 17.2% as of Sept. 30, 2023--well above the 14.5% minimum imposed by the Central bank of the United Arab Emirates (UAE). That said, we continue to carefully watch the evolution of FAB's risk appetite, particularly toward strategic acquisitions in higher-risk jurisdictions, and the evolution of lending to potentially more risky investment holding companies. What A Regional Escalation Could Mean For MENA Banks' External Funding, Nov. 13, 2023 First Abu Dhabi Bank PJSC, Sept. 14, 2023 Banks In Major GCC Economies Remain Resilient To Less Supportive Operating Conditions, Sept. 12, 2023 Broadening BRICS May Have Limited Economic

...What's new: First Abu Dhabi Bank PJSC (FAB) continued delivering robust earnings through the first nine months of 2023. Profits were supported by a higher-rate-influenced net interest margin (NIM), but also an increased component of foreign exchange and investment gains stemming from FAB's efforts to reinvigorate global market operations. Furthermore it sought to optimize its capital structure placing a $1 billion Tier 2 bond, which resulted in a total capital adequacy ratio of 17.2% as of Sept. 30, 2023--well above the 14.5% minimum imposed by the Central bank of the United Arab Emirates (UAE). Why it matters: Ultimately, we expect this to bolster the bank's already strong core credit characteristics. However, the increase in trading income also implies that future revenue may become less predictable. We continue to view FAB's capital as strong and forecast a risk-adjusted capital ratio of about 11.5%-12.0% over 2023-2024, supported by efficient performance with a cost-to-income ratio...

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