UAE's leading bank, First Abu Dhabi Bank (FAB), reports a 29% surge in profit for the second quarter, primarily due to an increase in revenue.

First Abu Dhabi Bank (FAB), one of the leading financial institutions in the United Arab Emirates, is pursuing a strategic expansion plan in the Middle East and North Africa (MENA) region. The bank's strategy is centred around diversification, international expansion, digital transformation, and selective acquisitions that create value.

After the successful merger of Bank Audi Egypt with FAB's Egyptian operations in June 2022, the bank demonstrated its openness to acquisitions in the MENA region, provided they align with value creation. However, in February 2022, FAB withdrew its offer to acquire 51% of EFG Hermes, Egypt's largest investment bank, due to global market uncertainties and volatile macroeconomic conditions.

Key elements of FAB’s strategy include:

1. **Acquisitions and Mergers:** The merger with Bank Audi Egypt marked a significant step in FAB's efforts to expand its footprint in Egypt, a key MENA market. Despite withdrawing its offer for EFG Hermes, FAB remains open to future acquisition opportunities that make strategic and commercial sense.

2. **International Expansion:** FAB is actively expanding its international presence by connecting clients across dynamic and high-growth corridors. The bank became the first MENA bank to participate directly in China’s Cross-border Interbank Payment System (CIPS), enhancing East-West financial connectivity as part of its global expansion efforts.

3. **Digital Transformation and Innovation:** FAB is embracing technology to improve efficiency and service quality. The bank is embedding artificial intelligence (AI) into its core operations, using AI-powered onboarding, credit analytics, and blockchain technologies like the region’s first blockchain-based digital bond.

4. **Sustainable Finance:** FAB is positioning itself as a leader in sustainable finance within the region, having achieved 64% of its AED 500 billion sustainable financing target by 2030. This aligns with broader regional and global sustainability goals, enhancing FAB’s competitive edge and appeal in emerging markets.

5. **Growth Metrics:** FAB has upgraded its loan growth guidance for 2025 from high single-digit to low double-digit growth, reflecting confidence in its market conditions and supporting its expansion strategy. The bank's strong financial performance, including a 26% rise in H1 2023 net profit and improvements in asset quality and credit ratings, provides a solid foundation for further growth.

In summary, FAB's MENA expansion strategy post-merger centres on prudent acquisitions where commercially viable, reinforcing regional banking presence, leveraging technological innovation, integrating sustainable finance, and expanding global connectivity to support growth in key markets like Egypt and beyond. The combined entity, FABMISR, operates as one of the largest foreign banks in the Egyptian market, with assets of more than $10 billion.

[1] First Abu Dhabi Bank (FAB) website: https://www.firstabudhabibank.com/ [2] Reuters: First Abu Dhabi Bank to merge with Bank Audi Egypt: https://www.reuters.com/business/finance/first-abu-dhabi-bank-to-merge-with-bank-audi-egypt-2022-02-28/ [3] Gulf Business: FAB becomes first MENA bank to participate in China's CIPS: https://gulfbusiness.com/fab-becomes-first-mena-bank-to-participate-in-chinas-cips/ [4] Zawya: FAB launches region's first blockchain-based digital bond: https://www.zawya.com/mena/en/business/story/FAB_launches_region_s_first_blockchain-based_digital_bond-ZAWYA20210325090005/

First Abu Dhabi Bank (FAB), following the merger with Bank Audi Egypt, seeks strategic acquisitions across the Middle East and North Africa (MENA) region that align with value creation.
In addition to acquisitions, FAB is actively expanding its international presence by connecting clients through dynamic and high-growth corridors, including East-West financial connectivity in China.
FAB's digital transformation strategy involves embedding artificial intelligence (AI) into its core operations, using AI-powered onboarding, credit analytics, and blockchain technologies for the region's first blockchain-based digital bond.
FAB is committed to sustainable finance and has achieved 64% of its AED 500 billion sustainable financing target by 2030, contributing to regional and global sustainability goals.
The combined entity, FABMISR, is one of the largest foreign banks in the Egyptian market, with assets of over $10 billion, and has upgraded its loan growth guidance for 2025, expecting low double-digit growth.

UAE's leading bank, First Abu Dhabi Bank (FAB), reports a 29% surge in profit for the second quarter, primarily due to an increase in revenue.