FAB delivers Dh10.73b H1 profit, with lending growth and deposits hitting Dh853b.
Dubai: First Abu Dhabi Bank’s loan book expanded by 7% in the first six months of 2026, reaching Dh661 billion, while customer deposits climbed to Dh853 billion.
Profit before tax increased 16% compared with the previous quarter and rose 6% year on year to Dh7.08 billion for the three months ending June 30.
For the first half of 2026, operating income grew 7% year on year to Dh19.50 billion, while profit before tax climbed 3% to Dh13.20 billion. Net profit rose 1% to Dh10.73 billion.
Return on tangible equity stood at 18.5%, compared with 20.5% during the same period last year, while remaining above the bank’s medium-term guidance.
FAB Group CEO Hana Al Rostamani said the bank’s first-half 2026 performance reflected the strength and diversification of its franchise, as well as its ability to deliver strong returns through consistent strategy execution.
Loans rise as assets reach Dh1.41 trillion
FAB’s total assets grew 2% from the end of 2025 to Dh1.41 trillion by the end of June, supported by higher lending activity across sectors and continued growth in customer deposits.
Loans and advances increased 7% to Dh661 billion, while customer deposits rose 1% to Dh853 billion. International assets stood at Dh437 billion, accounting for 31% of the group’s total assets.
The bank’s non-performing loan ratio improved to 2.2%, while its common equity tier-one capital ratio strengthened to 13.7%, up from 13.4% a year earlier.
FAB’s liquidity coverage ratio stood at 140% at the end of June, compared with 152% during the same period in 2025.
Interest income rises 14%
Net interest income increased 14% year on year to Dh11.48 billion, supported by stronger business volumes and improved margins.
Non-interest income reached Dh8.02 billion, accounting for 41% of the bank’s operating income in the first half of the year.
Second-quarter operating profit exceeded Dh8 billion, rising 11% compared with the previous quarter and 8% year on year.
FAB delivered a strong performance in the first half of 2026, with the second quarter marking a record period for the bank.
Operating profit exceeded Dh8 billion, rising 11% compared with the previous quarter and 8% year on year. The growth was supported by broad-based business momentum, expanding margins, stronger investment portfolio performance, and disciplined cost management.
FAB Group Chief Financial Officer Lars Kramer said the results reflected the bank’s continued progress across key business areas.
Investment banking and wholesale revenue climb
Investment Banking and Markets revenue increased 8% year on year to Dh6.42 billion, supported by stronger client activity and higher transaction volumes.
Loans within the division grew more than 22% from the end of 2025, while deposits increased 10%. Debt capital markets deal volumes rose 58% year on year, and Global Markets transaction volumes increased 42%.
Wholesale Banking revenue climbed 16% to Dh3.41 billion, with lending growth of 9% during the first half of the year.
Revenue from Personal, Business, Wealth and Privileged Client Banking rose 2% to Dh6.58 billion, while deposits increased 7%, adding Dh22 billion.
New-to-bank customer acquisitions in the small and medium-sized business segment grew 85%, while retail assets under management increased 20% year on year.
FAB’s international operations recorded a 35% rise in revenue and contributed 22% of the group’s total revenue. Lending across the international network expanded 6% during the first half.
The bank said its increased use of artificial intelligence helped improve productivity by more than 20% and reduced manual work by 70% to 80% across selected processes.
During the first half of the year, the bank issued $750 million in Tier 2 notes, achieving what it described as the tightest spread secured by a GCC bank for this type of instrument.
