First Abu Dhabi Bank

1. Company Overview & Earnings Context

First Abu Dhabi Bank (FAB), the UAE’s largest bank, reported its Q1 2026 results, showing steady income growth with stable profitability, despite higher impairment charges during the period.

2. Financial Performance Snapshot

• Operating income: AED 9.34B (+5.9% YoY)

• Net profit: AED 5.03B (−2.0% YoY)

• Net interest income: AED 4.80B (+7.5% YoY)

• Total net interest + Islamic income: AED 5.61B (+12.1% YoY)

• Net fee & commission income: AED 1.46B (+21.2% YoY)

• Profit before tax: AED 6.12B (flat YoY)

• EPS: AED 0.43 (vs AED 0.44 YoY)

• Net impairment charge: AED 1.10B (up from AED 0.72B)

3. Operational Highlights & Key Metrics

• Total assets: AED 1.49T

• Loans & financing: AED 685B (continued expansion)

• Customer deposits: AED 870.9B

• Operating expenses: AED 2.11B

• Operating cash flow: AED 24.5B

• Dividend approved: AED 0.80 per share

4. Key Performance Drivers

FAB’s Q1 performance was supported by growth in core banking income, particularly higher net interest income and strong fee-based revenues. However, overall profitability remained slightly lower year-on-year due to a notable increase in impairment charges, reflecting a more cautious stance amid evolving macroeconomic conditions. As highlighted in the income statement on page 6, operating income rose steadily, but higher provisions and costs moderated net earnings growth.

5. Outlook & Forward Guidance

The bank continues to operate with strong capital, liquidity, and balance sheet strength, supported by diversified income streams across corporate, retail, and international operations. Management remains focused on prudent risk management and navigating macroeconomic volatility, including the impact of regional developments and regulatory measures.

6. ???? Investor Takeaway

FAB delivered solid income growth with stable profits, while higher impairments indicate a more cautious credit environment going forward.