First Abu Dhabi Bank's nine-month profit rises 3% to Dh16.46 billion

Dubai: First Abu Dhabi Bank (FAB) reported a 3 per cent increase in group net profit to Dh16.46 billion for the first nine months of 2026, supported by higher lending volumes, improved interest margins and growth across its banking businesses.

The UAE lender's operating income rose 7 per cent year-on-year to Dh29.71 billion, while profit before tax increased 5 per cent to Dh20.22 billion, according to its financial results for the period ended September 30.

FAB maintained its earnings momentum during the third quarter, with profit before tax rising 9 per cent from a year earlier to Dh7.01 billion. The bank attributed the performance to sustained business activity, revenue growth and cost management.

Lending grows 10%

FAB's loans and advances increased 10 per cent since the beginning of 2026 to Dh679 billion, reflecting continued demand for financing across its wholesale and retail banking operations.

Customer deposits grew 5 per cent year-to-date to Dh885 billion, while total assets rose 7 per cent to Dh1.47 trillion at the end of September.

Net interest income, which represents earnings from lending and other interest-bearing assets after funding costs, increased 11 per cent year-on-year to Dh16.98 billion.

Non-interest income, including revenue from fees and other banking activities, rose 3 per cent to Dh12.73 billion, accounting for 43 per cent of the bank's total operating income.

Operating profit increased 8 per cent to Dh23.32 billion during the nine-month period.

Strong profitability, margins

Hana Al Rostamani, Group Chief Executive Officer of FAB, said the results reflected continued growth across the bank's businesses and progress in executing its strategy.

"FAB’s performance in the first nine months of 2026 reflects the strength of our franchise and the consistent execution of our strategy. Group operating income rose 7 percent year on year to AED29.71 billion, while profit before tax exceeded AED20 billion. Return on tangible equity reached 18.6 percent, remaining above our medium-term guidance," Al Rostamani said.

She said the UAE's investment programmes, economic diversification and expanding international trade relationships were creating further opportunities for financing and banking services.

Lars Kramer, FAB's Group Chief Financial Officer, said third-quarter operating profit increased 11 per cent year-on-year, supported by higher income and operating efficiency.

The bank's net interest margin, a measure of profitability from interest-earning assets, reached 1.93 per cent, an improvement of five basis points compared with a year earlier.

Kramer attributed the improvement to FAB's diversified business mix and funding position, while highlighting continued lending growth across its wholesale and retail operations.

Bad loans decline

FAB also reported an improvement in asset quality, with its non-performing loan ratio declining to 2.1 per cent from 2.6 per cent a year earlier.

The reduction indicates that a smaller proportion of the bank's loan portfolio was classified as non-performing compared with the corresponding period in 2025. Its Common Equity Tier 1 (CET1) capital ratio, a key measure of a bank's financial strength, stood at 14 per cent at the end of September.

The bank's liquidity coverage ratio reached 140 per cent, remaining above the regulatory minimum of 100 per cent. FAB said it continued to maintain AA- or equivalent credit ratings with stable outlooks from Moody's, Fitch and S&P.

E-funding, green finance

The bank also highlighted developments in its funding activities, including the recent issuance of Dh1 billion in Digitally Native Green Notes.

Kramer said the issuance expanded FAB's funding capabilities as the lender continued investing in financial innovation.

The bank also reiterated its Dh100 billion blue finance target, which focuses on financing activities linked to the sustainable use and protection of ocean and water resources.

FAB said it had become the first bank in the Middle East and North Africa to sign the United Nations Sustainable Blue Economy Finance Principles, reinforcing its commitment to financing projects linked to marine and water-related sustainability.