Image: FAB
First Abu Dhabi Bank (FAB) reported a record net profit of Dhs10.63bn ($2.9bn) for H1 2025, a 26 per cent year-on-year increase, surpassing the Dhs10bn mark for the first time in any half-year period.
Operating income rose 16 per cent year-on-year to Dhs18.31bn, while profit before tax climbed 29 per cent to Dhs12.83bn.
Return on tangible equity (RoTE) reached 20.5 per cent, exceeding the bank’s medium-term guidance of above 16 per cent. Earnings per share stood at Dhs0.93, up 27 per cent.
FAB Q2 highlights
In the second quarter, net profit rose 29 per cent to Dhs5.51bn compared to Q2 2024.
FAB’s balance sheet showed total assets of Dhs.34tn, up 11 per cent since the start of the year. Loans and advances rose 7 per cent to Dhs568bn, while customer deposits grew 4 per cent to Dhs813bn.
The bank’s common equity Tier 1 (CET1) ratio stood at 13.4 per cent and liquidity coverage ratio (LCR) at 152 per cent.
Non-performing loans (NPL) improved to a multi-year low of 2.84 per cent.
“FAB achieved new highs in the first half of 2025, with net profit exceeding Dhs10bn, and RoTE reaching 20.5 per cent. This reflects a franchise defined by scale, connectivity, and innovation,” said group CEO Hana Al Rostamani. “AI is increasingly embedded in how we operate and how we serve clients.”
Al Rostamani highlighted advances in AI-driven capabilities, such as Microsoft 365 Copilot, AI-powered onboarding and analytics, and services including Voice Concierge and the Board AI Observer.
Group CFO Lars Kramer noted that all divisions delivered double-digit revenue growth, with profit before tax rising 29 per cent, citing “consistent delivery at scale” and the recent launch of the region’s first blockchain-based digital bond.
FAB’s international business: Highlights
International business momentum continued, with income reaching Dhs3.1bn, or 17 per cent of group revenue.
Loans and deposits in international markets increased 28 per cent and 24 per cent respectively, with growth seen in the UK, France, Switzerland, and Saudi Arabia.
FAB also became the first MENA bank to join China’s Cross-border Interbank Payment System (CIPS) as a direct participant, strengthening cross-border connectivity.
Sustainable and transition financing facilitated by FAB reached Dhs318bn to date, or 64 per cent of its Dhs500bn target by 2030. The bank retained leading ESG ratings in the region, including MSCI AA.
FAB continues to hold the strongest combined credit rating among MENA banks, rated AA- or equivalent.
