FAB delivers 7% growth in H1’26 operating income to AED 19.50 billion and a profit before tax of AED 13.20 billion

Abu Dhabi, 23 July 2026: First Abu Dhabi Bank (FAB) the UAE’s global bank and one of the world’s largest and safest financial institutions, delivered a strong performance in the first half of 2026. In Q2’26, profit before tax rose 16% sequentially and 6% year on year to AED 7.08 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 AED 19.50 billion and a 3% yoy increase in profit before tax to AED 13.20 billion in H1’26. Net profit grew by 1% yoy to AED 10.73 billion in H1’26 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 AED 11.48 billion, supported by higher business volumes and improved margins. Non-interest income remained resilient at AED 8.02 billion, accounting for 41% of the Group’s operating income in H1’26. In Q2’26, operating profit increased 11% sequentially to more than AED 8 billion, further demonstrating the strength of FAB’s diversified earnings engine.

Strong lending activity and continued deposit inflows supported balance sheet growth during the period, with total assets up 2% ytd to AED 1.41 trillion as at June-end 2026. Loans and advances (net) increased 7% ytd to AED 661 billion, supported by broad-based origination across sectors, while customer deposits grew 1% ytd to AED 853 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: “FAB’s 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.

The reaffirmation of our AA- (or equivalent) credit ratings with stable outlooks by all three major rating agencies, underscores the strength of our franchise and our prudent risk management framework. As one of the highest-rated banks globally, we remain well positioned to support our clients through market cycles while delivering sustainable returns.

The UAE government’s firm commitment to long-term resilience and economic progress provides a strong and sustained backdrop for business activity. FAB is uniquely positioned to capture these opportunities, leveraging its deep financing and structuring expertise, proven execution track record, and extensive global reach. Together, these capabilities place FAB at the centre of enabling the UAE's long-term growth agenda.”

Lars Kramer, Group Chief Financial Officer of FAB, added: “FAB delivered a strong set of results in the first half of 2026, with Q2 marking a record quarter. Operating profit surpassed AED 8.0 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.

FAB’s 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.”

Key H1’26 Highlights

Building franchise momentum through disciplined growth and execution

The Group continued to deliver broad-based growth across its businesses, supported by strong client activity, disciplined execution and continued investment in strategic capabilities.

• Investment Banking & Markets delivered strong, broad-based growth with revenues up 8% yoy to AED 6.42 billion. Client activity remained robust, driving over 22% ytd growth in loans and 10% growth in deposits. The business retained leading MENA Investment Banking league table positions, while Debt Capital Markets’ deal volumes surged 58% yoy to new highs. The core franchise executed several landmark and first-of-their-kind structured solutions, while Global Markets delivered strong results with transaction volumes rising 42% yoy.

• Wholesale Banking’s sustained strong momentum, leveraging its sector specialisation and relationship-led model to drive strong performance and further reinforce its position as a leading regional franchise. Revenues increased 16% yoy to AED 3.41 billion, with loan growth of 9% ytd. Continued investment in transaction banking capabilities is further strengthening client connectivity and driving growth.

• Personal, Business, Wealth & Privileged Client Banking Group continued to execute on its growth strategy, driven by digital innovation, enhanced offerings, expanded cross-border capabilities and sustained SME growth. This momentum drove 85% growth in new-to-bank SME client acquisitions, while continued investments in wealth capabilities further strengthened value propositions and the scalability of the franchise. Revenues rose 2% yoy to AED 6.58 billion, and deposits grew 7% ytd, or AED 22 billion, while Retail AUMs grew 20% yoy.

• The international franchise continued to scale, reinforcing FAB's position as the UAE's global bank and a trusted partner across key corridors. Revenues increased 35% yoy, representing 22% of Group revenue, with 6% ytd lending growth. Expansion into new markets and enhanced offerings across the network, further strengthen cross-border capabilities while deepening access to key growth corridors.

Scaling AI adoption to enhance franchise-wide productivity and client experience

• Continuing to embed AI at scale to structurally drive sustainable growth, enhance productivity and efficiency, and elevate customer experience.
• External recognitions reinforce FAB's position as a regional AI leader: ranked among top 3 institutions in the 2026 Evident AI Middle East & Africa Banks Index including #1 positions across both Leadership and Transparency pillars and achieved Microsoft “Leader” status in AI and digital workforce maturity.
• Generating measurable business value at scale delivering over 20% productivity uplift and 70–80% reduction in manual effort across key workflows through a rapidly expanding library of AI agents and use cases.

Operating from a position of strength and sustainable finance leadership

• To date, FAB has facilitated AED 395 billion in sustainable and transition financing, achieving 79% of its AED 500 billion 2030 target in line with our commitment to drive meaningful impact across the financial ecosystem.
• ESG leadership in MENA, with FAB holding MENA’s strongest combined ESG ratings with a MSCI ESG Rating of AA and the Best LSEG ESG Score (top 17% worldwide).
• AA or equivalent credit ratings recently reaffirmed with stable outlooks by Moody’s, Fitch and S&P, placing FAB at the top end of global bank credit profiles and the highest-rated banking group in the MENA region.