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FAB operating income rises to Dh19.5 billion in 2026 on strong lending growth
The bank said operating income increased seven per cent year-on-year, while profit before tax rose three per cent to Dh13.2 billion during the first six months of the year
- PUBLISHED: Thu 23 Jul 2026, 12:49 PM
First Abu Dhabi Bank (FAB) reported higher earnings for the first half of 2026, driven by strong lending activity, higher net interest income and continued growth across its core businesses.
The bank said operating income increased seven per cent year-on-year to Dh19.5 billion, while profit before tax rose three per cent to Dh13.2 billion during the first six months of the year. Net profit reached Dh10.73 billion, up one per cent, while return on tangible equity (RoTE) stood at 18.5 per cent, remaining above the bank's medium-term target.
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During the second quarter alone, profit before tax climbed 16 per cent from the previous quarter and six per cent from a year earlier to Dh7.08 billion, supported by continued client activity and disciplined execution across the bank's businesses.
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Net interest income rose 14 per cent to Dh11.48 billion, supported by higher lending volumes and improved margins, while non-interest income remained steady at Dh8.02 billion, accounting for 41 per cent of total operating income. Operating profit exceeded Dh8 billion during the second quarter.
Balance sheet expands
FAB's total assets increased two per cent since the beginning of the year to Dh1.41 trillion, while net loans and advances grew seven per cent to Dh661 billion. Customer deposits rose one per cent to Dh853 billion, reflecting continued business activity across sectors.
Asset quality remained strong, with the non-performing loan ratio improving to 2.2 per cent. The bank's Liquidity Coverage Ratio stood at 140 per cent, while its Common Equity Tier 1 (CET1) ratio improved to 13.7 per cent, remaining comfortably above regulatory requirements.
FAB also retained its strong credit profile after Moody's, Fitch and S&P reaffirmed the bank's AA- (or equivalent) credit ratings with stable outlooks during the period.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said the results reflected the strength of the bank's diversified business model and client franchise.
"Our first-half performance demonstrates the scale and diversification of our franchise and our ability to deliver strong returns through consistent strategy execution," she said.
She added that continued investment in artificial intelligence, disciplined execution and the UAE's favourable economic environment positioned the bank to support the country's long-term growth agenda.
Investment banking and AI drive growth
Investment Banking and Markets revenues rose eight per cent to Dh6.42 billion, while Wholesale Banking revenues increased 16 per cent to Dh3.41 billion. The bank also reported 85 per cent growth in new SME client acquisitions and 20 per cent growth in retail assets under management.
International revenues surged 35 per cent, accounting for 22 per cent of total group revenue.
FAB said it continued expanding the use of artificial intelligence across the business, generating productivity improvements of more than 20 per cent and reducing manual effort by between 70 and 80 per cent across key workflows. The bank was also ranked among the top three financial institutions in the 2026 Evident AI Middle East & Africa Banks Index.
The bank said it has now facilitated Dh395 billion in sustainable and transition financing, representing 79 per cent of its target to mobilise Dh500 billion by 2030.
