Today's Edition
ABU DHABI (ALETIHAD)
First Abu Dhabi Bank (FAB) reported an operating profit of Dh7.22 billion for the first quarter of 2026, up 5% both year-on-year and quarter-on-quarter, driven by broad-based momentum across its franchise, a statement from the bank said.
Operating income increased 6% year-on-year to Dh9.34 billion, supported by diversified income streams and sustained activity across key business segments.
Net interest income rose 12% year-on-year to Dh5.61 billion, while non-interest income stood at Dh3.72 billion, contributing 40% of total revenue.
Net profit came in at Dh5.01 billion for the quarter, down 2% year-on-year, while return on tangible equity stood at 17.8%, compared to 20.4% a year earlier, remaining above the bank’s medium-term guidance.
The balance sheet continued to expand, with total assets rising 6% year-to-date to Dh1.49 trillion, surpassing $400 billion for the first time. Loans and advances increased 8% year-to-date to Dh668 billion, while customer deposits grew 4% to Dh871 billion, supported by strong inflows within the UAE. International assets stood at Dh442 billion, accounting for 30% of total assets.
Asset quality remained resilient, with the non-performing loan ratio improving to 2.1%. Capital and liquidity positions stayed comfortably above regulatory requirements, with a liquidity coverage ratio of 145%, up from 132% a year earlier, and a common equity tier-1 ratio of 12.8%, compared to 13.5% at the end of March 2025.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “Our Q1’26 performance reflects the strength of our diversified franchise, disciplined risk management, and strong credit profile, despite a more volatile backdrop towards the end of the quarter.
“These fundamentals are reflected in our AA- or equivalent credit rating, the strongest combined rating among MENA banks and one of the strongest globally, alongside consistent profitability, supported by a balanced revenue mix, disciplined cost management, and a prudent risk approach.
“We continue to focus on our strategic priorities, leveraging our strong capital position, liquidity profile, and diversified funding base to navigate the global environment from a position of strength. At the same time, we continue to invest in technology and AI to enhance risk management, improve decision-making, and elevate client experience.
“We also recognise the UAE leadership’s proactive and decisive measures supported by the regulatory oversight of the UAE Central Bank, which reinforce the stability and resilience of the financial system.
“As the UAE’s global bank and the largest bank in the region, we remain committed to supporting our clients, partners, and communities while maintaining a prudent and disciplined approach in a dynamic operating environment.”
Lars Kramer, Group Chief Financial Officer, added: “Our first-quarter performance demonstrates the underlying strengths of our diversified franchise, with consistent execution through a period of heightened regional tensions and market volatility, further reaffirming the Group’s resilience.
“FAB’s structural strengths position the Group to perform consistently through cycles. Liquidity, funding and capital ratios all remained well above regulatory requirements at March-end 2026, with resilient asset quality metrics underpinned by a prudent and forward-looking provisioning approach.
“Together, these inherent strengths, complemented by the UAE Central Bank’s pre-emptive relief measures, reinforce FAB’s through-the-cycle structural advantage to deliver sustainable returns at scale.”
