FAB's Pre-Tax Profit Climbs To Dh20.22 Billion As Lending Grows 10%

(MENAFN- Khaleej Times) First Abu Dhabi Bank (FAB) reported a 5 per cent rise in profit before tax to Dh20.22 billion for the first nine months of 2026, as growth in lending and net interest income lifted earnings.

Group operating income increased 7 per cent year on year to Dh29.71 billion, while net profit rose 3 per cent to Dh16.46 billion. Return on Tangible Equity (RoTE) stood at 18.6 per cent, above the bank's medium-term guidance of more than 16 per cent.

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In the third quarter, profit before tax grew 9 per cent to Dh7.01 billion, supported by business activity, revenue generation and cost discipline.

Loans and advances rose 10 per cent year to date to Dh679 billion, while customer deposits increased 5 per cent to Dh885 billion. Total assets reached Dh1.47 trillion, up 7 per cent since the start of the year.

Net interest income climbed 11 per cent to Dh16.98 billion on higher volumes and improved margins. Non-interest income rose 3 per cent to Dh12.73 billion, accounting for 43 per cent of operating income. Operating profit grew 8 per cent to Dh23.32 billion.

Asset quality and capital

The non-performing loan ratio improved to 2.1 per cent from 2.6 per cent a year earlier. The Common Equity Tier 1 (CET1) ratio strengthened to 14.0 per cent, and the Liquidity Coverage Ratio was 140 per cent at the end of September.

FAB retains AA- or equivalent ratings with stable outlooks from Moody's, Fitch and S&P.

Hana Al Rostamani, group CEO of FAB, said the results reflected“the strength of our franchise and the consistent execution of our strategy”. She said the UAE's next phase of growth, driven by investment programmes, economic diversification and deeper global integration, offered significant opportunities.

“We continue to invest in the future of banking, expanding the use of artificial intelligence and advancing our capabilities in digital assets and tokenisation,” she said.

Lars Kramer, group CFO of FAB, said operating profit rose 11 per cent in the third quarter. The net interest margin stood at 1.93 per cent, up 5 basis points year on year. He said the deposit franchise and access to global capital markets allowed FAB to maintain pricing discipline in a competitive environment. The bank recently issued Dh1 billion of Digitally Native Green Notes.

Units' performances

Investment banking and markets revenue rose 4 per cent to Dh9.33 billion and loans grew 22 per cent year to date.

Wholesale banking revenue increased 13 per cent to Dh5.14 billion and loans grew 14 per cent, driven by demand for project finance, guarantees and working capital across Middle East-Asia corridors.

Revenues from personal, business, wealth and privileged client banking rose 4 per cent to Dh10 billion and deposits grew 10 per cent. FAB remained the UAE's second-largest credit card issuer, and assets under management rose 11 per cent.

International revenue jumped 31 per cent and now makes up 22 per cent of Group revenue. Lending grew 3 per cent sequentially and customer deposits rose 8 per cent.

FAB has facilitated Dh417 billion in sustainable and transition financing, or 83 per cent of its Dh500 billion 2030 target. In September, it set an Dh100 billion blue finance target for 2026 to 2035 and became the first bank in Mena to sign the UN Sustainable Blue Economy Finance Principles.

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