First Abu Dhabi Bank (FAB), one of the world’s largest financial institutions, said its operating income increased by 6% yoy to AED9.34 billion ($2.54 billion) for the first quarter of 2026, while operating profit rose by 5% yoy to AED7.22 billion ($1.97 billion).
The group recorded a net profit of AED5.01 billion ($1.36 billion), while Return on Tangible Equity (RoTE) remained firmly above the group’s medium-term guidance at 17.8%.
FAB’s performance for the period was supported by strong operating momentum across its franchise, diversified income streams, and sustained activity across key business segments. Net interest income rose 12% yoy to AED5.61 billion, driven by solid business volumes and resilient margins, while non-interest income stood at AED3.72 billion and contributed 40% of Group revenue in Q1’26.
Balance sheet growth remained broad-based supported by strong lending activity and continued deposit inflows. Total assets rose by 6% year- to- date to AED1.49 trillion, surpassing $400 billion for the first time. Loans and advances (net) increased by 8% ytd to AED668 billion, reflecting healthy origination momentum across divisions, economic sectors, and geographies. Customer deposits grew by 4% ytd to AED871 billion on the back of strong inflows within the UAE.
Asset quality remained resilient, with the Non-Performing Loans (NPL) ratio improving to 2.1%, while capital and liquidity ratios remained well comfortably above regulatory requirements, with a Liquidity Coverage Ratio (LCR) of 145% and a CET1 ratio of 12.8% as at March-end 2026.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB has delivered a strong start to 2026, with first quarter Group revenue of AED 9.34 billion and net profit of AED 5.01 billion. Return on Tangible Equity remained solid at 17.8%, highlighting our ability to consistently deliver high-quality returns at scale, and across cycles.
"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 of FAB, 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.
"Operating profit grew 5% both sequentially and year-on-year, driven by broad-based balance sheet momentum, resilient margins, and continued cost discipline. Our diversified business mix, combined with active portfolio management, delivered strong fee-based and trading performance, mitigating the impact of dampened client flows towards the end of the quarter.
"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.”
Against a backdrop of evolving regional developments towards the end of the quarter, FAB’s strong balance sheet fundamentals and operational resilience enabled the group to navigate the environment effectively and continued service delivery with only limited disruption. Capital, liquidity, and funding positions remained robust, supported by a prudent risk management framework. The Group maintained full operational readiness across its network, underpinned by established business continuity protocols and disciplined monitoring, ensuring seamless support for clients, the bank said. - TradeArabia News Service
