First Abu Dhabi Bank

1. Company Overview & H1 2026 Performance

First Abu Dhabi Bank (FAB) delivered another resilient first-half performance in 2026, supported by diversified revenue streams, disciplined balance sheet growth and strong execution across its domestic and international franchises. Operating income increased 7% year-on-year to AED 19.5 billion, while profit before tax rose 3% to AED 13.2 billion and net profit reached AED 10.7 billion. The Group maintained strong profitability with a Return on Tangible Equity (RoTE) of 18.5%, comfortably above its medium-term guidance of over 16%.

2. Financial Performance Snapshot

• Operating Income: AED 19.50B (+7% YoY)

• Operating Profit: AED 15.25B (+7% YoY)

• Profit Before Tax: AED 13.20B (+3% YoY)

• Net Profit: AED 10.73B (+1% YoY)

• Net Interest Income: AED 11.48B (+14% YoY)

• Non-Interest Income: AED 8.02B

• Basic Earnings Per Share: AED 0.93

Compared with H1 2025:

• Operating income increased from AED 18.31B to AED 19.50B.

• Operating profit rose from AED 14.31B to AED 15.25B.

• Profit before tax increased from AED 12.83B to AED 13.20B.

• Net profit attributable to shareholders increased from AED 10.63B to AED 10.73B.

3. Balance Sheet & Key Metrics

• Total Assets: AED 1.41 Trillion

• Customer Deposits: AED 853B

• Net Loans & Advances: AED 661B

• UAE Assets: AED 972B (69% of Group Assets)

• International Assets: AED 437B (31% of Group Assets)

• RoTE: 18.5%

• CET1 Ratio: 13.7%

• Liquidity Coverage Ratio (LCR): 140%

• NPL Ratio: 2.2%

• Cost-to-Income Ratio: 21.8%

FAB maintained a strong balance sheet, supported by high capital ratios, solid liquidity, improving asset quality and diversified funding sources.

4. Key Performance Drivers

FAB's H1 2026 performance was driven by:

• Broad-based revenue growth across Investment Banking, Wholesale Banking, Retail Banking and International operations.

• Net interest income increased 14% due to higher business volumes, improved margins and effective treasury management.

• Net fee and commission income grew 20%, supported by stronger origination, capital markets activity and resilient trade flows.

• International franchise revenue increased 35% year-on-year, accounting for 22% of Group revenue.

• Investment Banking & Markets revenues increased 8%, with Debt Capital Markets volumes rising 58% year-on-year.

• Retail Assets Under Management increased 20%, while SME client acquisitions surged 85%.

• AI initiatives delivered more than 20% productivity improvements and reduced manual effort by 70–80% across key workflows.

5. Strategic Highlights & Outlook

Major developments during H1 2026 included:

• Continued expansion of FAB's international franchise, reinforcing its position as the UAE's global bank.

• Facilitated AED 395 billion in sustainable and transition financing, achieving 79% of its AED 500 billion 2030 target.

• Ranked among the top three institutions in the 2026 Evident AI Middle East & Africa Banks Index and achieved Microsoft "Leader" status in AI maturity.

• Successfully issued USD 750 million of Tier 2 notes at the tightest spread ever achieved by a GCC bank for this type of instrument.

• AA- (or equivalent) credit ratings reaffirmed by Moody's, Fitch and S&P with stable outlooks, maintaining FAB's position as the highest-rated banking group in the MENA region.

6. Investor Takeaway

FAB delivered another strong and resilient set of earnings in H1 2026, combining steady profit growth, record operating income, robust returns and a fortress balance sheet. Continued expansion across key business segments, leadership in sustainable finance and AI adoption, together with one of the strongest credit profiles globally, position the Group well for long-term growth while maintaining disciplined risk management and capital strength.