UAE's biggest bank FAB scores high in Q1-2025 profit, makes more gains from overseas ops

Dubai: The UAE’s biggest bank – FAB – rang up a 23% gain in Q1-2025 net profit from a year ago, to total Dh5.13 billion. The operating income for the first three months was Dh8.81 billion, higher by 11%.

The Abu Dhabi bank have other reasons to be pleased about its performance, with its international operations contributing 30% of group-wide assets of Dh1.31 trillion. “FAB’s performance in the first quarter of 2025 reflects strong business momentum in its operations in the UAE and across the international franchise,” said Hana Al Rostamani, Group CEO at FAB.

The UAE's banking sector will have no complaints from their numbers in Q1-25, and FAB's results are the latest to reinforce that.

"We expanded our business in investment banking and markets, in wholesale banking, in personal, business, wealth and privileged client banking group, as well as in our international branches," said Hana. (The overseas operations recorded loan and deposit gains of 19% and 13% year-on-year.)

Loans, advances and Islamic financing (net) were 8% higher year-on-year - and 4% on a year-to-date basis - to Dh548 billion. The growth in the loan books so far this year will be particularly encouraging, and a theme that UAE's other leading banks had noted in their own Q1-25 financials.

FAB's net interest income was Dh5 billion, up 3% yoy and 1% quarter-on-quarter, led by 'healthy origination across divisions and geographies, driven by diversified sectors and retail lending'. The net interest margin (NIM) was 1.97%.

The operating income growing 11% to Dh8.81 billion meant FAB ended Q1 'largely offsetting the impact of the increase in UAE corporate tax during the period', said Lars Kramer, Group CFO.

"FAB continues to operate from a relative position of strength. This is supported by a robust capital base, ample liquidity, high-quality portfolios, and a diversified business model – all of which reinforce our resilient profile amid evolving market dynamics and heightened uncertainties.”

FAB trimmed its net impairment charges to Dh700 million, which is lower by 29% year-on-year and 34% on a quarter-on-quarter basis.

"Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products, all contributed to this strong set of results," said Kramer.