ABU DHABI (ALETIHAD)
First Abu Dhabi Bank (FAB) reported a net profit of Dh10.73 billion for the first half of 2026, up 1% from the same period last year, as operating income rose 7% to Dh19.50 billion.
Profit before tax increased 3% year on year to Dh13.20 billion, while return on tangible equity stood at 18.5%, remaining above the bank’s medium-term guidance, according to an earnings release issued on Thursday.
Net interest income increased 14% to Dh11.48 billion, supported by higher business volumes and improved margins. Non-interest income stood at Dh8.02 billion and accounted for 41% of the bank’s operating income during the period.
FAB’s total assets increased 2% from the end of 2025 to Dh1.41 trillion at the end of June. Net loans and advances rose 7% to Dh661 billion, supported by lending across sectors, while customer deposits increased 1% to Dh853 billion.
The bank said asset quality remained resilient, with its non-performing loan ratio improving to 2.2%. Its common equity Tier 1 ratio rose to 13.7% at the end of June, compared with 13.4% a year earlier, while the liquidity coverage ratio stood at 140%.
Moody’s, Fitch, and S&P reaffirmed FAB’s AA- or equivalent credit ratings with stable outlooks during the period.
In the second quarter, profit before tax increased 16% from the previous quarter and 6% year on year to Dh7.08 billion. Operating profit exceeded Dh8 billion, rising 11% sequentially and 8% from a year earlier.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said the first-half performance demonstrated the scale and diversification of the bank’s franchise and its ability to generate returns through the consistent execution of its strategy.
“These results reflect the strength of our client base and the trusted relationships we have built across our home market and international network,” Al Rostamani said.
She added that disciplined execution and investment in artificial intelligence capabilities had helped the bank sustain its growth momentum. She said the UAE government’s commitment to long-term resilience and economic progress continued to provide a supportive backdrop for business activity, while FAB’s financing expertise and international reach positioned it to participate in the country’s growth agenda.
Lars Kramer, Group Chief Financial Officer of FAB, said the bank delivered a strong first-half performance, with the second quarter marking a record quarter.
“Operating profit surpassed Dh8 billion, rising 11% sequentially and 8% year on year, reflecting broad-based business momentum, margin expansion, stronger investment portfolio performance and disciplined cost management,” Kramer said.
He added that the bank had continued to manage its balance sheet and liquidity while supporting capital generation, with the common equity Tier 1 ratio remaining above regulatory requirements.
FAB also issued $750 million of Tier 2 notes during the period. The bank said the transaction achieved the tightest spread secured by a GCC bank for that type of instrument.
The bank said the use of artificial intelligence across selected operations had generated productivity improvements of more than 20% and reduced manual work by between 70% and 80% in some workflows.
FAB had also facilitated Dh395 billion in sustainable and transition financing by the end of June, equivalent to 79% of its Dh500 billion target for 2030.