FAB H1 net profit rises to Dh10.73 billion, lending grows 7%

Dubai: First Abu Dhabi Bank’s loan book grew 7% during the first six months of 2026 to Dh661 billion, while customer deposits reached Dh853 billion.

Profit before tax rose 16% compared with the previous quarter and 6% year on year to Dh7.08 billion during the three months ending June 30.

Operating income for the first half increased 7% year on year to Dh19.50 billion, while profit before tax rose 3% to Dh13.20 billion. Net profit increased 1% to Dh10.73 billion.

Return on tangible equity stood at 18.5%, compared with 20.5% during the same period last year, and remained above the bank’s medium-term guidance.

Loans rise as assets reach Dh1.41 trillion

FAB’s total assets increased 2% from the end of 2025 to Dh1.41 trillion at the end of June, supported by lending activity across different sectors and continued deposit inflows.

Loans and advances grew 7% to Dh661 billion, while customer deposits increased 1% to Dh853 billion. International assets stood at Dh437 billion and represented 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 increased to 13.7% 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 increases 14%

Net interest income rose 14% year on year to Dh11.48 billion, supported by higher business volumes and improved margins.

Non-interest income stood at Dh8.02 billion and represented 41% of the bank’s operating income during the first half.

Second-quarter operating profit exceeded Dh8 billion, increasing 11% from the previous quarter and 8% from a year earlier.

Investment banking and wholesale revenue climb

Investment Banking and Markets revenue increased 8% year on year to Dh6.42 billion, supported by 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, while Global Markets transaction volumes increased 42%.

Wholesale Banking revenue climbed 16% to Dh3.41 billion, with loans growing 9% during the first half.

Revenue from Personal, Business, Wealth and Privileged Client Banking increased 2% to Dh6.58 billion, while deposits grew 7%, representing an increase of Dh22 billion.

New-to-bank customer acquisitions in the small and medium-sized business segment increased 85%, while retail assets under management rose 20% year on year.

FAB’s international business recorded a 35% increase in revenue and accounted for 22% of group revenue. Lending across the international network grew 6% during the first half.

FAB said its expanding use of artificial intelligence delivered productivity improvements of more than 20% and reduced manual work by between 70% and 80% across selected processes.

During the first half, the bank issued $750 million in Tier 2 notes at what it said was the tightest spread achieved by a GCC bank for this type of instrument.