FAB Posts Net Profit of $2.89 Billion in H1 2025

Despite the step-up in corporate tax, the net profit of First Abu Dhabi Bank (FAB) rose 26% y-o-y to $2.89 billion during the first half of this year. Profit Before Tax increased 29% y-o-y to $3.49 billion, reflecting strong operating performance while earnings per share also increased 27% to $0.25.

The operating income increased by 16% y-o-y to $4.99 billion driven by strong volumes, resilient margins, and diversified revenue streams with a significant 46% contribution from non-interest income, the bank said in a bourse filing with Abu Dhabi Stock Exchange (ADX).

Net interest income also was up 2% y-o-y to $2.71 billion driven by strong business volumes. Net Interest Margin (NIM) was 1.88%, 6 bps lower y-o-y due to lower benchmark rates witnessed over the period.

Non-interest income grew 41% y-o-y to $2.27 billion in H1 2025 and this was driven by a 25% y-o-y increase in fees & commissions income, supported by strong origination and deal execution, and a 30% rise in FX & Investment income reflecting robust client flows and a strong trading performance.

Operating expenses rose 4% y-o-y to $1.09 billion amid continued investments in strategic areas including AI and technology. Group cost-to-income ratio was 21.8% compared with 24.4% during rhe same period last year, mainly as a result of strong revenue growth over the period.

Net impairment charges were 23% lower y-o-y to $400 million underlining strong asset quality throughout the portfolio and a robust macro-economic backdrop.

Growth in Total Assets

The bank’s total assets grew 14% y-o-y and 11% year-to-date (YTD) to $360 billion. Loans, advances and Islamic financing (net) grew 11% y-o-y and 7% YTD to $154.66 billion, driven by healthy origination across divisions, sectors and geographies. Islamic financing growth was robust, rising 8% YTD due to targeted expansion efforts.

Investments grew 22% y-o-y and 13% YTD to $76.24 billion, supported by increased deployment into fixed income instruments and proactive balance sheet management.

Customer deposits grew 6% y-o-y and 4% YTD to $221.38 billion, reinforcing FAB’s role as an aggregator of regional and international liquidity. CASA balances grew 13% y-o-y and 11% YTD, driven by both retail and wholesale franchises.

As of June-end 2025, CASA balances were in excess of the $108.92 billion threshold for the first time and represented 49% of Group deposits. Deposit growth in the Islamic franchise was particularly strong at 24% YTD, the bank said.

NPLs (non-performing loans) stood at $4.48 billion as of 30 June 2025, lower sequentially reflecting write-offs and subdued NPL formation during the period. Gross NPL ratio was 2.84%, lower by 84 bps y-o-y and 42 bps q-o-q and at a multi-year low.

The bank also raised $2.25 billion equivalent of senior wholesale funding at competitive pricing. The key landmark transactions included a $600 million 5-year Sukuk priced at the tightest spread ever achieved by a MENA bank in public format; and two 5-year Formosa FRN bonds of $750 million each, priced at the lowest ever pricing achieved by a MENA bank in the Formosa market.

In July 2025, FAB issued a $100 million 3-year FRN Digital bond, the region’s first blockchain-based digital bond.