First Abu Dhabi Bank posts AED 5.01bn Q1 2026 net profit as assets hit AED 1.49tn
First Abu Dhabi Bank posts AED 5.01bn Q1 2026 net profit, ROTE 17.8%; revenues AED 9.34bn and assets AED 1.49tn as loans and deposits climb amid AI push.
First Abu Dhabi Bank reported a net profit of AED 5.01 billion for the first quarter of 2026, demonstrating resilient earnings amid regional volatility. The bank said its return on tangible equity (ROTE) reached 17.8%, exceeding its medium‑term targets and underlining strong profitability. First Abu Dhabi Bank also highlighted growth across operating income, lending and customer deposits, supported by disciplined risk management and strategic investments.
FAB posts revenue and operating profit growth
First Abu Dhabi Bank recorded group operating income of AED 9.34 billion in Q1 2026, up 6 percent year‑on‑year, driven by a broad-based increase in both net interest income and fee‑generating activities. Operating profit rose 5 percent to AED 7.22 billion, reflecting higher core income and effective cost oversight across businesses. The bank said net interest income grew 12 percent to AED 5.61 billion, underpinning margin resilience in a varied rate environment.
Fee and non‑interest revenue contributed materially to the top line, with non‑interest income totaling AED 3.72 billion and representing 40 percent of group operating income for the quarter. This mix shift highlights diversification away from pure interest reliance and the bank’s success in expanding transactional and advisory flows. Management attributed the mix to stronger client activity across corporate and wealth segments and progress in transaction banking.
Balance sheet expands to AED 1.49 trillion
On the balance sheet, First Abu Dhabi Bank reported total assets of AED 1.49 trillion, an increase of 6 percent year‑to‑date, supported by lending growth and liquidity deployment. Loans and advances grew 8 percent to AED 668 billion since the start of the year, reflecting sustained new origination across corporate, commercial and retail portfolios. The bank emphasized that lending momentum was broad‑based across sectors and geographies, aided by its international network.
Customer deposits rose 4 percent year‑to‑date to AED 871 billion, with the group noting particularly strong inflows within the UAE. The deposit growth and a diversified funding base supported the bank’s liquidity buffers and provided capacity for ongoing lending activity. First Abu Dhabi Bank said its capital position remained robust, enabling it to sustain lending growth while meeting regulatory requirements.
Lending and deposits buoyed by domestic demand
Management described domestic demand as a primary driver of credit expansion during the quarter, with corporate and commercial clients increasing utilisation of credit lines. Retail lending also contributed as consumer spending and mortgage activity sustained momentum in key urban markets. The bank cautioned that regional market volatility late in the quarter required active portfolio monitoring, but that asset quality metrics remained sound.
Deposit growth was supported by targeted initiatives to deepen customer relationships and by market‑competitive pricing, the bank said. First Abu Dhabi Bank highlighted ongoing efforts to broaden its deposit franchise through digital channels and relationship management. These efforts, combined with a strong balance sheet, have helped preserve funding stability through the quarter.
CEO Hanaa Al Rostamani cites business model strength and AI investment
Hanaa Al Rostamani, Chief Executive Officer of First Abu Dhabi Bank, said the group began 2026 with “outstanding results” that demonstrate its ability to deliver high‑quality returns through the cycle. She pointed to the bank’s diversified business model, disciplined risk management and resilient credit portfolio as the foundations of the performance. Ms. Al Rostamani added that the bank will continue to leverage its capital strength, liquidity buffers and diversified funding to navigate global challenges.
The CEO also reiterated the bank’s commitment to sustained investment in technology and artificial intelligence to enhance risk management and customer experience. She said these investments will support decision‑making, improve operational efficiency and help the bank scale digital products across retail, corporate and wealth segments. Management signalled that technology spend remains a strategic priority as the bank seeks to capture new revenue streams and improve margins.
Strategic priorities and outlook for 2026
First Abu Dhabi Bank outlined continued focus on core strategic priorities including prudent capital allocation, disciplined credit growth and expansion of non‑interest income streams. The bank remains focused on cost efficiency while investing selectively in growth areas such as digital banking, payments and wealth management. Executives said they expect to maintain balanced growth while preserving capital and liquidity strength as market conditions evolve.
Looking ahead, the group will monitor regional geopolitical and economic developments and adapt its positioning to preserve profitability and asset quality. Management affirmed guidance that the bank is well positioned to deliver sustainable returns and to capitalise on opportunities created by structural shifts in the UAE and global markets. The combination of strong quarterly results and ongoing strategic investment gives the bank scope to pursue both organic growth and client service enhancements.
First Abu Dhabi Bank’s Q1 results underline a period of measured expansion supported by diversified revenues, a fortified balance sheet and an active technology programme, setting a foundation for continued performance through 2026.
