Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
First Abu Dhabi Bank (FAB) has delivered a record-breaking first quarter performance, achieving strong growth across key financial metrics.
According to detailed results posted on the Abu Dhabi Securities Exchange (ADX) website, FAB reported a net profit of Dh5.13 billion for the first quarter ended March 31, 2025, representing a 23% year-on-year (YoY) increase, despite the introduction of new UAE corporate tax requirements at the beginning of the year.
Operating income rose 11% year-on-year to Dh8.81 billion, supported by a balanced contribution from both interest and non-interest income streams.
“Our performance in the first quarter of 2025 reflects strong business momentum in our UAE operations and across the international franchise,” said Hana Al Rostamani, Group Chief Executive Officer of FAB. “We will continue to leverage our strengths to drive innovation and customer experience and remain focused on delivering consistent value to our clients and strong, sustainable returns to our shareholders.”
FAB’s robust earnings translated into a Return on Tangible Equity (RoTE) of 20.4%, up from 17.4% in the first quarter of 2024, positioning the bank firmly on track with its medium-term target of maintaining RoTE above 16%.
The bank’s total assets reached Dh1.31 trillion, up 6% year-on-year, driven by strong growth across loans, investments, and customer deposits. Net loans and advances grew 8% year-on-year to Dh548 billion, reflecting healthy origination across diversified sectors and geographies. Customer deposits increased by 4% year-on-year to Dh 839 billion, with current and savings accounts (CASA) balances expanding by 10% to Dh376 billion, accounting for 45% of total deposits.
FAB's asset quality remained solid with a non-performing loan (NPL) ratio of 3.3%, improving by 40 basis points from a year earlier. Provision coverage also strengthened to 98%, underscoring the bank’s prudent risk management practices.
Non-interest income was a highlight, rising 22% year-on-year to Dh3.8 billion, reflecting strong growth in fees, commissions, and trading activities. The bank’s cost-to-income ratio improved to 22.3%, highlighting continued operating efficiencies despite ongoing investments in digital transformation and AI-driven initiatives.
“We achieved an outstanding set of results this quarter on the back of strong commercial momentum, resilient margins, robust fee and trading performances, and enhanced revenue from flow products," said Lars Kramer, Group Chief Financial Officer. “With the strongest combined credit rating among any other bank in MENA, 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.”
The report highlighted FAB’s commitment to innovation, with the bank becoming the first in the region to introduce an AI Agent Board Observer at its board meetings. The adoption of artificial intelligence, coupled with continued growth in digital platforms like the Payit mobile wallet, is enhancing customer experience and operational efficiency.
On the sustainability front, FAB made significant strides, facilitating Dh284 billion in sustainable and transition financing to date —57% of its 2030 target. It also became the first bank in the MENA region to issue a nature-related financial disclosure aligned with the TNFD framework.
