Hana Al Rostamani has more than 22 years of experience in the banking and financial services sector. Courtesy First Abu Dhabi Bank
Hana Al Rostamani has more than 22 years of experience in the banking and financial services sector. Courtesy First Abu Dhabi Bank
Hana Al Rostamani has more than 22 years of experience in the banking and financial services sector. Courtesy First Abu Dhabi Bank
Hana Al Rostamani has more than 22 years of experience in the banking and financial services sector. Courtesy First Abu Dhabi Bank

Banking

UAE's largest lender optimistic about recovery as it appoints first female CEO

First Abu Dhabi Bank appoints Hana Al Rostamani as CEO succeeding Andre Sayegh, who retires after 21 years

Deena Kamel
Deena Kamel

January 27, 2021

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First Abu Dhabi Bank, the UAE’s largest lender by assets, appointed its first female chief executive and said it expects underlying operating performance to improve in 2021, driven by a healthy pipeline of business from government and state-related bodies and by a recent acquisition in Egypt.

The lender sees a gradual recovery in the UAE's economic outlook as it expects oil prices to stabilise, stimulus measures to support foreign investment and improving business sentiment on the back of the UAE's mass vaccination drive, FAB said in an investor presentation on Wednesday. The bank said it is optimistic about a gradual recovery in key sectors such as trade, services, logistics and tourism.

"Looking ahead and despite ongoing uncertainties, we expect a gradual recovery as the Covid-19 vaccine rollout gathers momentum, and government stimulus measures support the economic rebound," James Burdett, group chief financial officer at FAB, said. "Against this backdrop, FAB enters 2021 in a position of strength."

The bank posted a full-year net profit of Dh10.6 billion, 16 per cent less than 2019, due to lower revenue and higher impairment charges.

"Profitability was lower year-on-year reflecting unprecedented market conditions, record low interest rates and the pandemic-driven economic slowdown," it said.

Annual revenue fell 8 per cent to Dh18.6bn while net impairment charges rose 42 per cent in 2020.

FAB recommended a cash dividend distribution of 74 fils per share for the full year ending December 31, 2020.

The bank also named Hana Al Rostamani as its first female group chief executive, a significant step for gender diversity in the male-dominated banking sector.

First Abu Dhabi Bank appointed its first female CEO and is optimistic about the economic recovery in 2021. Courtesy FAB
First Abu Dhabi Bank appointed its first female CEO and is optimistic about the economic recovery in 2021. Courtesy FAB

Ms Al Rostamani will succeed Andre Sayegh, who will retire from the role next month after 21 years with the bank.

Ms Al Rostamani has more than 22 years of local and international experience in the banking and financial services industry and has served as an independent director in Emirates Integrated Telecommunication Company. She was vice-chairperson of the Emirates Institute for Banking and Financial Services. Currently, she is the chairperson of FAB Private Bank Suisse.

"FAB has always been an organisation that champions diversity and the appointment of our first female group chief executive to lead our company into the future is truly something to value," Sheikh Tahnoon bin Zayed, chairman of FAB, said.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Sale of Chelsea Football Club is now impossible.

The biog

Mission to Seafarers is one of the largest port-based welfare operators in the world.

It provided services to around 200 ports across 50 countries.

They also provide port chaplains to help them deliver professional welfare services.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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