First Abu Dhabi Bank (FAB), the UAEâs global bank and one of the worldâs largest and safest financial institutions, delivered a strong performance in the first half of 2026.
In Q2â26, profit before tax rose 16% sequentially and 6% year on year to AED7.08 billion ($1.93 billion), reflecting the resilience of its diversified business model, disciplined execution, and continued client activity across its franchise.
The group reported a 7% YoY growth in operating income to AED19.50 billion and a 3% YoY increase in profit before tax to AED13.20 billion ($3.59 billion) in H1â26. Net profit grew by 1% YoY to AED10.73 billion in H1â26 and Return on Tangible Equity (RoTE) remained firmly above the group's medium-term guidance at 18.5%.
Growth was broad-based across the franchise. Net interest income rose 14% YoY to AED11.48 billion, supported by higher business volumes and improved margins. Non-interest income remained resilient at AED8.02 billion, accounting for 41% of the groupâs operating income in H1â26. In Q2â26, operating profit increased 11% sequentially to more than AED8 billion, further demonstrating the strength of FABâs diversified earnings engine.
Strong lending activity and continued deposit inflows supported balance sheet growth during the period, with total assets up 2% year-to-date (ytd) to AED1.41 trillion as at June-end 2026. Loans and advances (net) increased 7% ytd to AED661 billion, supported by broad-based origination across sectors, while customer deposits grew 1% ytd to AED853 billion.
Asset quality remained resilient, with the Non-Performing Loan (NPL) ratio improving to 2.2%, while capital and liquidity ratios remained comfortably above regulatory requirements. The Liquidity Coverage Ratio (LCR) stood at 140%, and the CET1 ratio increased to 13.7% as at June-end 2026. During the period, FAB further reinforced its financial strength as Moody's, Fitch and S&P reaffirmed the Group's AA- (or equivalent) credit ratings with stable outlooks.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: âFABâs first-half 2026 performance demonstrates the scale and diversification of our franchise, and our ability to deliver strong returns through consistent strategy execution. Group operating income reached AED 19.50 billion, rising 7% year-on-year, while net profit of AED 10.73 billion translated into a return on tangible equity of 18.5%, firmly above medium-term guidance.
"These results reflect the strength of our client base and the trusted relationships we have built across our home market and international network. Our continued focus on disciplined execution and targeted investments in AI capabilities has enabled us to sustain growth momentum and further reinforce our position as the UAE's global bank."
Lars Kramer, Group Chief Financial Officer of FAB, added: âFAB delivered a strong set of results in the first half of 2026, with Q2 marking a record quarter. Operating profit surpassed AED8.0 billion, rising 11% sequentially and 8% year on year, reflecting broad-based business momentum, margin expansion, stronger investment portfolio performance, and disciplined cost management.
"Our diversified earnings engine continued to generate attractive returns at scale, supported by strong underlying portfolio quality. We further enhanced management overlays during the period, reflecting our prudent approach to risk management in an evolving operating environment.
"We continued to pursue disciplined growth through active balance sheet and liquidity management, enhancing returns while supporting capital generation. Group CET1 ratio of 13.7% at June-end 2026, remains comfortably above regulatory requirements, reinforcing our capacity to capture future growth.
"FABâs differentiated credit profile and diversified funding platform continue to support efficient access to global capital markets. This was evidenced through several transactions during the period including the successful issuance of USD 750 million of Tier 2 notes at the tightest spread ever achieved by a GCC bank for this type of instrument,â said Kramer. - TradeArabia News Service
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