Overview
First Abu Dhabi Bank (FAB) is the largest bank in the United Arab Emirates, formed through the merger of First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD) in 2017.
Formation and Key Facts
- Merger announced: July 3, 2016
- Shareholder approval: December 7, 2016
- Official launch: April 2017
- Transaction: Share swap (1.254 NBAD shares for each FGB share)
Operations and Services
FAB operates through two main franchises:
- Corporate and Investment Banking
- Personal Banking The bank also offers Private Banking services for wealth management.
Global Presence
- Headquarters: Khalifa Business Park, Abu Dhabi
- International network: Spans five continents (Asia Pacific, Europe, Americas, Middle East, and Africa)
Leadership
- Group CEO: Hana Al Rostamani (as of January 2021)
- Chairman: H.H. Sheikh Tahnoon Bin Zayed Al Nahyan
Financial Performance
- 2022 Net Profit: AED 13.4 billion
- 2021 Net Profit: US$3.4 billion (19% increase from 2020)
Recognitions and Rankings
- Safest bank in the UAE and Middle East (Global Finance)
- Best bank in the UAE (Global Finance)
- Ranked 1st in UAE, 2nd in Middle East, and 85th globally by Tier 1 capital (The Banker's Top 1000 World Banks 2020)
- Ranked 1st in UAE, 4th in Arab world, and 303rd globally among public companies (Forbes)
Expansion and Initiatives
- 2019: Started operations in Saudi Arabia
- Focus: Investing in people and technology
- 'Grow Stronger' movement: Supporting customers' growth ambitions
Legal Challenges
In 2019, FAB faced a lawsuit filed by Qatar related to alleged plans to devalue the Qatari riyal. Despite this, the bank has continued to expand its services and operations.
Leadership Team
First Abu Dhabi Bank (FAB) has recently strengthened its leadership team with key appointments and experienced some significant changes.
Key Appointments
- Simon Thorn - Group Chief Compliance Officer
- Joined FAB in 2023 from Barclays Bank UK
- Oversees regulatory compliance, anti-money laundering, and financial crime policies
- Experience: Merrill Lynch, Nomura, UK Financial Services Authority (FSA)
- Neil Barrable - Group Chief Credit Officer
- Leads FAB's credit function
- Nearly 30 years of experience in credit and related functions
- Previous roles: HSBC London, JP Morgan, Barclays Capital, Deutsche Bank
Existing Leadership
- Hana Al Rostamani - Group Chief Executive Officer
- Appointed in January 2021
- Previous roles: Deputy Group CEO, Group Head of Personal Banking
- Other positions: Director at Emirates Integrated Telecommunication Company, Vice-Chairperson of EIBFS
- Lars Kramer - Group Chief Financial Officer
- Appointed in 2023
- Previous roles: CFO at ABN AMRO, financial roles at Hellenic Bank and ING
- Chris Jaques - Chief Risk Officer
- Appointed in August 2024
- Previous roles: Managing Director at Deutsche Bank, CRO for UK and Ireland, Global Head of Enterprise Risk Management
Board of Directors
- Chairman: H.H. Sheikh Tahnoon bin Zayed Al Nahyan (Deputy Ruler of Abu Dhabi)
- Vice Chairman: H.E. Sheikh Mohamed bin Saif Al Nahyan
- Other non-executive members with roles in various committees
Recent Changes and Challenges
- Departures of head of global markets and chief operating officer
- Questions raised about internal stability and executive retention
- Commitment to growth strategies, including potential international acquisitions FAB continues to adapt its leadership structure to support its expansion and growth objectives while navigating challenges in the competitive banking sector.
History
First Abu Dhabi Bank (FAB) was formed through the strategic merger of two prominent UAE banking institutions, creating the country's largest bank.
Merger Formation
- Announced: July 3, 2016
- Shareholders' approval: December 7, 2016
- Merger parties: First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD)
- Execution: Share swap (1.254 NBAD shares for each FGB share)
- Completion date: April 2, 2017
Brand Identity and Integration
- New brand combines 'Abu Dhabi' (NBAD) and 'First' (FGB) identities
- Logo features F.A.B acronym and 'Awwal' (First) brand mark
- Integration process:
- Harmonized group policies and risk frameworks
- Optimized organizational structures and network
- Integrated real estate and property management businesses
- Consolidated Islamic finance subsidiaries
- Rebranded brokerage business
Expansion and Operations
- International expansion began in 2019 with Saudi Arabia operations
- Present in five continents: Asia Pacific, Europe, Americas, Middle East, and Africa
- Operates in 20 countries
- Services range from retail to investment banking and global corporate finance
Leadership and Performance
- CEO: Hana Al Rostamani (appointed January 2021)
- Financial highlights:
- 2021: Net profit of US$3.4 billion (19% YoY increase)
- 2022: Net profit of AED 13.4 billion
Recognitions and Commitments
- Recognized as safest bank in UAE and Middle East by Global Finance
- Highly ranked in global banking lists
- Member of Net Zero Banking Alliance
- Committed to net-zero financed emissions by 2050 FAB's history reflects a successful merger that has created a robust, globally recognized financial institution with a strong commitment to growth and sustainability.
Products & Solutions
First Abu Dhabi Bank (FAB) offers a comprehensive range of banking products and services catering to personal, business, and corporate needs: Personal Banking:
- Accounts: Personal Savings, Current, and Elite Savings Accounts
- Cards: Credit cards (FAB Infinite, Elite Infinite) and debit cards
- Loans: Personal, car, home (including for non-UAE residents and FAB Green Mortgage), and secured loans
- Bancassurance: Motor, travel, home, and life insurance Business and Corporate Banking:
- Corporate Accounts: Tailored business bank accounts and deposit schemes
- Corporate Lending: Medium and long-term facilities, short-term loans for working capital and trade finance
- Trade Finance: Letters of Credit services and Standby Letters of Credit for various guarantees
- Real Estate Finance: Support for US commercial real estate investments Investment and Securities:
- Structured Products: Investments in equities, FX, and commodities
- Global Investment Funds and securities brokerage services
- Securities Finance: Expanding lending and borrowing services in UAE and Middle East
- Debt Capital Markets: Securities underwriting and share buyback services Treasury Products:
- Time Deposits, Certificates of Deposit, U.S. Commercial Paper, and Repurchase Agreements Islamic Banking:
- Shariah-compliant banking services for personal, business, and investment needs Private Banking:
- Customized services for Elite and Elite World Clients Digital Solutions:
- Advanced online banking facilities for efficient account management
- Adoption of cutting-edge technology like containerized architecture with Kong for improved service delivery FAB's diverse product range demonstrates its commitment to meeting varied customer needs across local and international markets.
Core Technology
First Abu Dhabi Bank (FAB) has implemented several key technological advancements to enhance its operations and customer experience: Core Banking System:
- Utilizes Temenos' T24 (Transact) system for both conventional and Islamic banking
- Consolidated legacy platforms of First Gulf Bank and National Bank of Abu Dhabi post-merger Cloud and AI Adoption:
- Partnered with Core42 and Microsoft to migrate data center and workloads to Microsoft Azure
- Leverages sovereign cloud offerings for advanced features while ensuring data compliance Infrastructure Modernization:
- Collaborates with Infosys to optimize IT infrastructure using Infosys Cobalt and Topaz
- Aims to improve service quality, compliance, and operational efficiency Containerized Architecture and API Management:
- Adopted Kong Gateway Enterprise for microservices-based architecture
- Reduced application delivery time and expanded API endpoints Digital and Mobile Technologies:
- Achieved significant increases in mobile registrations and digital transactions
- Launched fully digital account opening processes and automated manual procedures Blockchain Initiatives:
- Introduced UAE Trade Connect (UTC), a nationwide blockchain trade finance platform
- Aims to digitize trade finance services, enhancing security and reducing costs These technological advancements position FAB as a leader in financial services innovation in the UAE and MENA region, demonstrating its commitment to operational efficiency and customer-centric services.
Industry Peers
First Abu Dhabi Bank P.J.S.C (FAB) is often compared to several industry peers in financial analyses: Regional Peers:
- Emirates NBD Bank PJSC: Major UAE bank, comparable in financial performance and market metrics
- Abu Dhabi Commercial Bank PJSC (ADCB): Significant player in UAE banking, similar in corporate and commercial services
- Dubai Islamic Bank P.J.S.C (DIB): Major Islamic bank in UAE, comparable in consumer and corporate banking
- Abu Dhabi Islamic Bank PJSC (ADIB): Another UAE Islamic bank, peer in Islamic finance and banking services Broader Industry Peers:
- Qatar National Bank QPSC: Major Qatari bank, included due to its significant presence in the GCC banking sector
- United Overseas Bank Ltd. (Singapore): Sometimes included in broader comparisons to assess FAB's performance against major Asian banks These peers are used to evaluate FAB's performance across various metrics, including:
- Price-To-Earnings (PE) ratios
- Credit ratings
- Return on Equity (RoE)
- Capital adequacy Comparing FAB with these peers provides valuable insights into its market position, financial health, and overall performance within the regional and global banking industry.