First Abu Dhabi Bank (FAB), recognized as the largest and one of the most secure financial institutions in the United Arab Emirates, announced remarkable financial results for the first half of 2025. The bank reported a group net profit increase of 26% compared to the same period last year, reaching 10.63 billion dirhams, marking the first time it exceeded 10 billion dirhams in a half-year period. Earnings per share rose by 27% to 0.93 dirhams, while the return on tangible equity (ROTE) stood at 20.5%, aligning with the bank’s medium-term goal of maintaining this figure above 16%. Additionally, pre-tax profits surged by 29% to 12.83 billion dirhams, driven by a 16% increase in operating income, which reached 18.31 billion dirhams.
FAB’s strong performance stemmed from its ongoing business activities across its network, bolstered by an expanding customer base, diversified growth across key economic sectors, and a rise in new client acquisitions. Net interest income grew by 2% to 9.96 billion dirhams, while non-interest income surged by 41% to 8.35 billion dirhams.
This upward trend was fueled by a 25% increase in fee and commission income, thanks to robust deal-making capacity, alongside a 30% rise in foreign exchange and investment income driven by strong client inflows and increased treasury profits. As a result, total operating income amounted to 18.31 billion dirhams for the first half of 2025.
The bank maintained a solid balance sheet, with loans and advances rising by 7% since the beginning of the year to 568 billion dirhams, and customer deposits increasing by 4% to 813 billion dirhams, reflecting strong growth in both corporate and retail sectors. Total assets surged by 11% year-to-date to 1.34 trillion dirhams.
Furthermore, the bank exhibited a notable improvement in asset quality, with the ratio of non-performing loans declining to 2.84%, the lowest in several years. By the end of June 2025, the common equity tier 1 ratio stood at 13.4%, while the liquidity coverage ratio remained solid at 152%. Additionally, FAB continues to hold the highest credit ratings in the region, supported by strong capital and ample liquidity with prudent risk management practices.
Commenting on FAB’s strong results for the first half of 2025, Hannah Al Rostamani, CEO of FAB Group, stated, “FAB has continued to deliver outstanding performance during the first half of 2025, with group operating income rising by 16% compared to the same period last year, reaching 18.31 billion dirhams, while net profits exceeded 10 billion dirhams for the first time in a half-year period. The return on tangible equity reached 20.5%, in line with the bank’s medium-term aim of exceeding 16%, supported by a strong balance sheet and some of the best global credit ratings.”
She added, “These robust results further solidify FAB’s position as the global bank for the UAE, reflecting the strength of our diversified portfolio and capacity for expansion and innovation, with increasing use of artificial intelligence in our operations and services worldwide. Concurrently, we remain committed to being a trusted partner in supporting the rapid growth and development of the UAE, through strategies aligned with national priorities.”
Al Rostamani also highlighted the significant progress the bank has made in integrating artificial intelligence across its operational fields, showcasing the launch of an autonomous AI platform named Agentic AI, the adoption of Microsoft CoPilot across the group, and the application of AI-driven solutions for new customer account openings, credit analytics, and enhanced service quality. Technologies such as AI-enabled board observations and voice concierge features have already begun to make a positive impact.
Additionally, she mentioned a key achievement that enhances the bank’s global financial connectivity strategy, as FAB became the first bank in the MENA region to join the Chinese cross-border payment system known as CIPS, confirming its commitment to link clients across dynamic and rapidly growing economic markets.
In conclusion, Al Rostamani reiterated FAB’s dedication to delivering sustainable value to all stakeholders and advancing its strategy with increased innovation, national development support, and international expansion efforts, laying a solid foundation for long-term success and growth.
Moreover, Lars Kramer, Chief Financial Officer of FAB Group, remarked, “FAB has delivered strong financial performance in the first half of 2025, with pre-tax profits rising by 29% from the same period last year, reaching 12.83 billion dirhams. Net profits for the second quarter also surged by 29% year-on-year to 5.51 billion dirhams, demonstrating the bank’s ongoing ability to achieve robust results across the board, underpinned by diversified revenue growth and prudent risk management.”
Kramer continued, “The bank recorded significant revenue growth across all divisions, highlighting effective balance sheet utilization and enhanced client trust amidst market changes. Consistent execution of our strategic priorities supports our steady progress toward our medium-term ROE target of over 16%. In line with FAB’s strong results and commitment to financial innovation, the bank has launched the first digital bond based on blockchain technology in the region, underscoring its leadership in shaping the future of capital markets.”
Key Highlights for the First Half of 2025
Broad revenue growth across FAB’s network, driven by tailored solutions to meet customer needs:
- Investment Banking and Markets: The sector saw a revenue growth of 17% compared to the previous year, driven by an increase in deal-making activities, reinforcing the bank’s leadership in capital markets within the MENA region and strong performance globally. FAB played a pivotal role in several landmark transactions, including financing one of the largest data center projects in the region.
- Corporate and Institutional Banking: This sector experienced a 12% rise in revenue year-on-year, attributed to ongoing momentum and strong client activities across key economic sectors, along with new client acquisitions and mandates in banking and financial advisory services.
- Personal and Business Banking and Wealth Management: Revenue for this division grew by 12%, driven by robust new client acquisition across retail, high-net-worth individuals, and small to medium enterprises. The strong growth in private banking and wealth management saw assets under management increase by 61% compared to the prior year.
- International Business Portfolio: The international business portfolio exhibited significant growth, with loans increasing by 28% and deposits by 24% year-on-year, reflecting the bank’s international presence across over 20 markets. Key markets, including the UK, France, Switzerland, and Saudi Arabia, largely contributed to this performance, reinforcing the bank’s expanding presence in key commercial and investment markets.
- FAB has become the first financial institution in the MENA region to participate directly in the cross-border banking payment system, enhancing its role as a link between East and West and opening new avenues for global flows.
The group is accelerating its adoption of artificial intelligence through the integration of advanced solutions into core operations, generating significant benefits and fostering positive transformations:
- Incorporating AI into decision-making processes through powerful analytical tools enabling data-driven decisions across the group, featuring innovations like the AI Board Observer, trade document verification, and distribution channel enhancements.
- Adopting Microsoft CoPilot across the group’s employee base.
- Redefining customer service through seamless experiences and AI-supported tools, such as smart voice response systems, intelligent email routing, and real-time fraud detection.
Total bank assets grew by 14% to 1.34 trillion dirhams by the end of June.
Leading the bank since 2021, Al Rostamani stated in April that FAB reorganized its operational sectors during the first quarter.
Earlier sources indicated to Reuters that the restructuring aimed to bolster the bank’s operations in the Gulf and enhance shareholder returns, following the departure of several senior executives in recent years.