First Abu Dhabi Bank Profit Tops Dh5b As Assets Cross $400B Milestone

(MENAFN- Khaleej Times) First Abu Dhabi Bank (FAB) posted a solid set of first-quarter results, with net profit reaching Dh5.01 billion and operating income rising six per cent year-on-year to Dh9.34 billion, underscoring the strength of the UAE's largest lender despite a volatile regional backdrop.

Operating profit increased five per cent both sequentially and year-on-year to Dh7.22 billion, supported by broad-based growth across business lines and continued balance-sheet expansion. Return on tangible equity stood at a robust 17.8 per cent, remaining comfortably above the bank's medium-term guidance.

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A key milestone during the quarter was FAB's total assets exceeding $400 billion for the first time, rising six per cent year-to-date to Dh1.49 trillion, reinforcing its position among the region's most systemically important financial institutions.

Balance-sheet growth remained strong, driven by healthy credit demand and steady deposit inflows within the UAE. Net loans and advances increased eight per cent year-to-date to Dh668 billion, while customer deposits rose four per cent to Dh871 billion.

Net interest income climbed 12 per cent year-on-year to Dh5.61 billion on the back of resilient margins and business volumes. Non-interest income contributed Dh3.72 billion, accounting for 40 per cent of total revenue and reflecting the bank's diversified earnings structure.

Asset quality remained stable, with the non-performing loan ratio improving to 2.1 per cent. Liquidity and capital buffers also stayed comfortably above regulatory thresholds, with the liquidity coverage ratio at 145 per cent and the CET1 ratio at 12.8 per cent as of March-end 2026.

Hana Al Rostamani, group chief executive officer, said the performance demonstrated FAB's ability to deliver consistent returns across market cycles.“FAB has delivered a strong start to 2026, with first-quarter revenue of Dh9.34 billion and net profit of Dh5.01 billion. Return on tangible equity remained solid at 17.8 per cent, highlighting our ability to consistently deliver high-quality returns at scale,” she said.

She added that the bank's diversified franchise, disciplined risk management and strong credit profile supported performance despite increased volatility toward the end of the quarter.

“These fundamentals are reflected in our AA- or equivalent credit ratings - the strongest combined rating among Mena banks - alongside consistent profitability supported by a balanced revenue mix and prudent risk approach,” she said.

FAB's Investment Banking and Markets division delivered strong momentum, with revenue rising 10 per cent year-on-year and contributing 35 per cent of total group income. The division also recorded more than 20 per cent growth in loans and deposits year-to-date.

Wholesale Banking revenue increased 18 per cent year-on-year, supported by lending expansion and enhanced integrated financing, custody and liquidity solutions. During the quarter, FAB became the first UAE local bank to clear trades for international brokers on domestic exchanges and the first to offer institutional-grade crypto custody services.

Meanwhile, the Personal, Business, Wealth and Privileged Client Banking segment generated Dh3.23 billion in revenue, supported by strong liability growth and digital onboarding momentum. SME acquisitions rose 80 per cent, while retail CASA balances expanded 17 per cent.

FAB's international franchise also recorded double-digit lending growth year-to-date and contributed 24 per cent of total group revenue, reflecting strengthening activity across strategic global corridors.

Lars Kramer, group chief Financial officer, said the results highlighted the bank's resilience during a period of regional uncertainty.

“Operating profit grew five per cent both sequentially and year-on-year, driven by balance-sheet momentum, resilient margins and continued cost discipline,” he said.“Our diversified business mix delivered strong fee-based and trading performance despite softer client flows toward the end of the quarter.”

FAB also accelerated its digital transformation strategy, embedding agentic artificial intelligence across operations. The bank said AI deployment has already delivered productivity gains of up to 20 per cent across selected processes, with more than 95 per cent of structured data now integrated into its AI-enabled platform.

On the sustainability front, FAB has facilitated Dh389 billion in sustainable and transition financing, achieving 78 per cent of its Dh500 billion target for 2030. The bank also retained some of the region's strongest ESG credentials, including an MSCI ESG rating of AA.

Ranked first among UAE lenders in Forbes World's Best Banks 2026, FAB said its strong capital position, diversified funding base and disciplined risk framework position it to navigate global uncertainty while continuing to support clients and economic growth across its markets.

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