FAB Achieves 23% Increase In Net Profit To AED 5.13 Billion For Q1 2025

First Abu Dhabi Bank (FAB) achieved remarkable financial results in the first quarter of 2025. The bank reported a Group net profit of AED5.13 billion, marking a 23% increase compared to the same period last year. Additionally, the Group's profit before tax rose by 22% to AED6.13 billion. This performance highlights FAB's strong business momentum and client activity across various income streams.

Group revenue for FAB reached AED8.81 billion, an 11% increase from Q1 2024. This growth was driven by double-digit increases in all segments and a 22% rise in non-interest income, which contributed 43% to the total revenue. This underscores FAB's successful diversification strategy.

The bank experienced an 8% year-on-year growth in loans and a 4% increase in deposits, leading to a total asset growth of 6%. For the first time, total assets surpassed AED1.3 trillion. The net interest margin improved by 4 basis points quarter-on-quarter to reach 1.97%. The cost-to-income ratio also improved, dropping from 24% in Q1 2024 to 22.3%.

Return on Tangible Equity (RoTE) increased to 20.4%, up from 17.4% in Q1 2024, aligning with FAB’s medium-term target of over 16%. Hana Al Rostamani, Group CEO of FAB, stated that the bank continues to focus on strategic priorities by leveraging the UAE economy's growth and expanding internationally.

Al Rostamani highlighted that Investment Banking and Markets showed robust performance with a revenue increase of 15% year-on-year and 22% quarter-on-quarter. Wholesale Banking revenue grew by 12%, reflecting strong business momentum and client activity, with loans and deposits rising by 13% and 18%, respectively.

The Personal, Business, Wealth, and Privileged Client Banking Group saw an 11% year-on-year revenue increase and a quarterly rise of 7%. This was driven by strong retail momentum, customer acquisitions, and enhanced customer experiences through advanced technology and AI.

International Expansion

The international branches also contributed significantly to balance sheet growth with loans up by 19% year-on-year and deposits increasing by 13%. These gains were observed across diverse geographies.

Al Rostamani further mentioned that FAB is leveraging innovation and AI technology to boost productivity, predictive analysis, customer experience, and service quality. In early this year’s board meeting, an AI agent was introduced as part of efforts to integrate AI into board engagement processes.

The bank remains well-capitalised with strong liquidity and asset quality supporting its long-term resilience. Al Rostamani concluded that FAB maintains its position as the UAE’s global bank with total assets now exceeding AED1.3 trillion.

With inputs from WAM