Today's Edition
ABU DHABI (ALETIHAD)
First Abu Dhabi Bank (FAB), the UAE’s largest lender, reported a record net profit of Dh16.02 billion for the first nine months of 2025, an increase of 24% year-on-year, driven by strong business growth across all divisions and solid balance sheet performance.
The bank’s profit befotax rose 26% year-on-year to Dh19.25 billion, while operating income grew 16% to Dh27.65 billion, supported by diversified revenue streams and sustained client activity. Return on Tangible Equity (RoTE) stood at 20%, well above FAB’s medium-term guidance of over 16%, underlining its ability to deliver strong returns at scale.
FAB’s third-quarter profit climbed 21% to Dh5.39 billion, reflecting continued momentum in lending, deposits and transaction volumes, and a healthy rise in non-interest income.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said the results reflected broad-based growth and consistent execution across the bank’s global operations. “FAB delivered record results in the first nine months of 2025, with Group revenue of Dh27.65 billion and net profit over Dh16 billion, up 16% and 24% year-on-year, respectively, reflecting strong momentum throughout the year. Return on Tangible Equity stood at 20%, well above our medium-term target,” she said.
She added: “Across the franchise, we continued to deepen client relationships, diversify revenue streams, and deploy capital efficiently to drive sustainable growth and returns. As we advance our strategic expansion in Europe, Turkey, Nigeria, and India, we are strengthening FAB’s role as a leading corridor bank across key geographies.”
FAB’s non-interest income surged 37% year-on-year to Dh12.7 billion, contributing 46% of total Group revenue, supported by a 23% rise in fees and commissions and a 45% increase in FX and investment income. Net interest income rose 2% to Dh14.96 billion, reflecting higher business volumes and resilient margins.
On the balance sheet side, total assets rose 14% year-to-date to Dh1.38 trillion, with loans and advances up 13% to Dh596 billion, and customer deposits increasing 8% to Dh848 billion. The bank maintained a strong liquidity position, with a Liquidity Coverage Ratio (LCR) of 158%, while its CET1 capital ratio stood at 13.7% — both comfortably above regulatory requirements.
Lars Kramer, Group Chief Financial Officer, said the third quarter reinforced FAB’s consistent growth trend. “FAB’s third-quarter performance marked another strong set of results, with net profit up 21% year-on-year to Dh5.39 billion. We remained fully engaged in supporting our clients across all segments, maintaining strong momentum in lending, transaction volumes, and deposit flows,” he said.
“All business divisions delivered record revenue, driven by effective balance sheet deployment and growth in fee-based businesses supporting an enhanced revenue mix, while interest margins remained resilient,” Kramer added.
FAB also highlighted that it raised Dh12.8 billion ($3.5 billion) in senior wholesale funding during the period and executed several landmark transactions, including its first Blue Bond — the first of its kind from a GCC bank — and its first Low Carbon Energy Bond, which achieved the tightest spread of any bank in the CEEMEA region.
The bank’s cost-to-income ratio improved to 22% from 24.3% a year earlier, reflecting strong operational efficiency gains despite continued investment in digital transformation and AI integration. FAB said it has deployed 18 AI-driven agents across trade operations, customer service, and analytics, doubling processing capacity and reducing turnaround times by up to 50%.
FAB’s asset quality remained sound, with the non-performing loan (NPL) ratio at an all-time low of 2.6%, down from 3.8% a year ago, and provision coverage improving to 106%.
“Our AI adoption journey is advancing rapidly, generating measurable impact across the Group and reinforcing FAB’s leadership at the forefront of intelligence-driven innovation,” Al Rostamani said. “We enter the final quarter of 2025 with solid momentum, a resilient balance sheet, and firm confidence in our ability to sustain strong performance and deliver consistent returns into 2026 and beyond.”
The bank’s international operations contributed Dh4.78 billion, or 17% of Group revenue, supported by growth in loans and deposits of 23% and 18%, respectively, year-to-date, across more than 20 global markets. FAB said it continues to advance its position as the UAE’s global bank, connecting clients to trade and capital flows across Asia, Europe, and Africa.
FAB closed September 2025 with total shareholders’ equity of Dh138 billion, up 7% year-on-year, and maintained its AA- credit rating from leading agencies, underscoring its strong fundamentals and prudent risk management.
