First Abu Dhabi Bank (FAB) reported today record results for the first quarter of 2025, with net profit rising 23 percent annually to AED5.13 billion ($1.4 billion) and profit before tax increasing 22 percent to AED6.13 billion.
FAB attributed its strong financial performance to solid business momentum and client activity across diversified income streams, positioning it to deliver sustained shareholder value.
“We continue to execute on our strategic priorities, capitalizing on the growth of the UAE economy and across our international footprint. We expanded our business in Investment Banking & Markets, in Wholesale Banking, in Personal, Business, Wealth and Privileged Client Banking, as well as in our international branches,” stated Hana Al Rostamani, group CEO of FAB.
Total assets surpass AED1.3 trillion for first time
FAB’s revenue increased 11 percent to AED8.81 billion in Q1 2025, with double-digit growth in all segments. This growth was also supported by a 22 percent rise in non-interest income, which contributed 43 percent to group revenue, underscoring the bank’s diversification strategy. Loans and deposits grew 8 percent and 4 percent, respectively, with total assets growing 6 percent to over the AED1.3 trillion milestone for the first time.
The bank also revealed that its net interest margin grew 4 basis points quarter-on-quarter to 1.97 percent. Meanwhile, its cost-to-income ratio improved to 22.3 percent, from 24 percent in Q1 2024.
FAB added that its return on tangible equity stood at 20.4 percent, up from 17.4 percent last year, in line with its medium-term target of greater than 16 percent. The bank also maintains robust balance sheet fundamentals underpinned by an AA- credit rating.
“FAB’s Q1 2025 performance positions the bank for sustainable growth. As we look to the future, 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,” added Al Rostamani.
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Investment banking segment marks notable growth
FAB’s investment banking and markets delivered a strong performance, with revenue growing 15 percent. Meanwhile, wholesale banking revenue grew 12 percent, underlining strong activity and business momentum across the bank’s client franchise, with loans and deposits up 13 percent and 18 percent, respectively.
FAB’s international franchise also saw significant balance sheet growth, with loans and deposits up 19 percent and 13 percent, respectively, from broad-based geographies.
“Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products all contributed to this strong set of results. Notably, our performance reflects strong client engagement across segments, disciplined strategy execution, as well as ongoing operating efficiencies and a prudent approach to risk,” added Lars Kramer, group chief financial officer of FAB.
The bank continued to leverage technology to enhance customer experience and drive efficiencies through rapid deployment of AI and accelerated digital transformation, improving Net Promoter Score and increasing digital engagement, including mobile wallet Payit, crossing the 1 million customer milestone.
