First Abu Dhabi Banks H1 2025 Profit Jumps 26% To Record AED10.63bn On Strong Non-interest Income

The UAE’s largest lender said operating income for the six months to June 30 rose 16 per cent to AED 18.31 billion, while profit before tax increased 29 per cent to AED 12.83 billion. Earnings per share rose 27 per cent to AED 0.93.

Return on tangible equity reached 20.5 per cent, up from 17.3 per cent a year earlier and above the bank’s medium-term guidance of over 16 per cent.

Net interest income for the period grew 2 per cent year-on-year to AED 9.96 billion, while non-interest income surged 41 per cent to AED 8.35 billion, driven by a 25 per cent rise in fees and commissions and a 30 per cent increase in foreign exchange and investment income.

Chief Executive Hana Al Rostamani said the bank’s record performance “reinforces FAB’s position as the UAE’s global bank,” citing the lender’s “scale, connectivity, and innovation, with AI increasingly embedded in how we operate and how we serve our clients.”

First Abu Dhabi Bank’s second-quarter net profit rose 29 per cent year-on-year to AED 5.51 billion, with all business divisions delivering double-digit revenue growth.

Loans and advances at the end of June were AED 568 billion, up 7 per cent since December, while customer deposits grew 4 per cent to AED 813 billion. Total assets rose 11 per cent year-to-date to AED 1.34 trillion. The non-performing loan ratio improved to 2.84 per cent, and the common equity tier-1 (CET1) ratio stood at 13.4 per cent. The liquidity coverage ratio was 152 per cent.

Chief Financial Officer Lars Kramer said the results reflected “diversified revenue growth, resilient margins, prudent risk management, and targeted investments in technology and AI.” He also highlighted the bank’s issuance of the region’s first blockchain-based digital bond as “a milestone that underscores FAB’s leadership in shaping the future of capital markets in the region.”

First Abu Dhabi Bank’s investment banking and markets revenue rose 17 per cent year-on-year, underpinned by strong origination and leadership in MENA capital markets. Wholesale banking revenue grew 12 per cent, and personal, business, wealth, and privileged client banking revenue rose 12 per cent, with a 61 per cent increase in private banking and wealth assets under management.

Internationally, loans and deposits rose 28 per cent and 24 per cent, respectively, led by growth in the UK, France, Switzerland, and Saudi Arabia.

The bank also became the first in the MENA region to join China’s Cross-border Interbank Payment System (CIPS) as a direct participant.

First Abu Dhabi Bank said it has facilitated AED 318 billion in sustainable and transition financing to date — 64 per cent of its AED 500 billion target for 2030 — and has maintained its AA- or equivalent credit rating, the strongest combined rating among MENA banks.