First Abu Dhabi Bank Powers Ahead With Record Q1 Numbers

Group revenue was up 11 per cent at AED8.81 billion (US$2.4 billion), with double-digit growth in all segments and supported by 22 per cent growth in non-interest income (NII).

Strong Q1 for First Abu Dhabi Bank

The bank’s diversification strategy was reflected by NII contributing 43 per cent to the group revenue. Loans and deposits grew 8 per cent and 4 per cent YoY, respectively, with total assets growing 6 per cent and crossing AED1.3 trillion for the first time.

Net Interest Margin grew 4 bps quarter-on-quarter (QoQ) to 1.97 per cent. The cost-to-income ratio improved to 22.3 per cent, from 24.0 per cent in Q1’24.

Return on Tangible Equity (RoTE) improved from 17.4 per cent in Q1 2024 to 20.4 per cent, which is in line with the bank’s medium-term target of greater than 16 per cent.

Hana Al Rostamani, Group Chief Executive Officer of First Abu Dhabi Bank, praised the bank’s performance and said it is well-positioned to sustain its momentum, expand its scale, and continue delivering long-term value to shareholders and stakeholders.

Al Rostamani commented: “FAB delivered a strong performance in the first quarter of 2025, achieving an operating income of AED8.81 billion and a net profit of AED5.13 billion for the group, supported by sustained growth momentum across our business segments and our international franchise.

“We continue to execute on our strategic priorities capitalising on the growth of the UAE economy and across the international footprint.

“Our return on tangible equity increased to 20.4 per cent and remains consistently focused on value creation across the cycle. The bank remains well-capitalised, with a strong liquidity and asset quality supporting our long-term resilience.

“We will continue to leverage our strengths to drive innovation and customer experience and remain focused on delivering value to our clients and strong, sustainable returns to our shareholders.”

Among First Abu Dhabi Bank’s businesses, most divisions notched double-digit growth.

Investment Banking & Markets revenue grew 15 per cent YoY and 22 per cent QoQ. Equity Capital Markets and Debt Capital Markets franchises helped clients raise US$29 billion in Q1’25, up 56 per cent YoY.

Wholesale Banking revenue grew 12 per cent YoY on the back of strong activity and business momentum across client franchise. Loans and deposits were up 13 per cent and 18 per cent YoY.

Personal, Business, Wealth and Privileged Client Banking Group revenue was up 11 per cent YoY and 7 per cent QoQ, driven by strong retail momentum, customer acquisitions, and enhanced customer experience.

The international franchise saw significant balance sheet growth, with loans and deposits up 19 per cent and 13 per cent YoY respectively.

Lars Kramer, Group Chief Financial Officer of First Abu Dhabi Bank, added: “In the first quarter of 2025, FAB delivered very strong financial performance and returns, with operating income growing 11 per cent to AED8.81 billion, largely offsetting the impact of the increase in UAE corporate tax during the period.

“Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products, all contributed to this strong set of results.

“With the strongest combined credit rating among any other bank in MENA (of AA- or equivalent), FAB continues to operate from a relative position of strength.”

Customer deposits grew 4 per cent YoY and 7 per cent year to date to AED839 billion (AED228.45 billion) from sizeable inflows across both wholesale and retail. Current Account Savings Account (CASA) balances grew 10 per cent YoY, reaching AED376 billion (US$102.4 billion), or 45 per cent of total group deposits.