First Abu Dhabi Bank (FAB) delivered record results for the first quarter of 2025, with group net profit of AED5.13 billion ($1.4 billion), up 23% year on year, and group profit before tax reaching AED6.13 billion, up 22% year on year.
This outstanding financial performance reflects FAB’s solid business momentum and strong client activity across diversified income streams, with FAB well positioned to deliver sustained shareholder value.
Group revenue increased to AED8.81 billion, an 11% rise compared to Q1’24, with double digit growth in all segments and supported by 22% growth in non-interest income, which contributed 43% to Group revenue, underscoring the bank’s diversification strategy.
Loans and deposits grew 8% and 4% respectively yoy, with total assets growing 6% yoy crossing the AED1.3 trillion milestone for the first time. Net Interest Margin grew 4 bps qoq to 1.97%. Cost-to-income ratio improved to 22.3%, from 24.0% in Q1’ 24.
Return on Tangible Equity (RoTE) stood at 20.4%, up from 17.4% in Q1’24, and in line with FAB’s medium-term target of greater than 16%. The bank maintains robust balance sheet fundamentals underpinned by an AA- credit rating.
FAB’s Q1’25 performance reinforces its position as the region’s leading banking powerhouse and a key engine of the UAE’s economic growth and prosperity. The bank is well-positioned to sustain its momentum, expand its scale, and continue delivering long-term value to shareholders and stakeholders.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB delivered a strong performance in the first quarter of 2025, achieving an operating income of AED8.81 billion and a net profit of AED5.13 billion for the group, up 23% year on year, supported by sustained growth momentum across our business segments and our international franchise.
"We continue to execute on our strategic priorities capitalizing on the growth of the UAE economy and across the international footprint. We expanded our business in Investment Banking & Markets, in Wholesale Banking, in Personal, Business, Wealth and Priviliged Client Banking, as well as in our international branches. FAB maintains its leading position as the UAE’s global bank with a robust balance sheet and total assets now over AED1.3 trillion.
"Our return on tangible equity increased to 20.4% and remains consistently focused on value creation across the cycle. The bank remains well-capitalized, with a strong liquidity and asset quality supporting our long-term resilience.
"We continue to leverage innovation and AI technology to enhance productivity, predictive analysis and customer experience and service. In the first quarter of this year, we have taken further steps to embed AI in our board engagement, by introducing an AI agent to our first board meeting of the year.
"FAB's Q1 2025 performance positions the bank for sustainable growth. As we look to the future, we will continue to leverage our strengths to drive innovation and customer experience and remain focused on delivering consistent value to our clients and strong, sustainable returns to our shareholders,” Al Rostamani said.
Lars Kramer, Group Chief Financial Officer of FAB, added: “In the first quarter of 2025, FAB delivered very strong financial performance and returns, with operating income growing 11% to AED 8.81 billion, largely offsetting the impact of the increase in UAE corporate tax during the period.
"Strong commercial momentum, resilient margins, robust fee and trading performances and enhanced revenue from flow products, all contributed to this strong set of results. Notably, our performance reflects strong client engagement across segments, disciplined strategy execution, as well as ongoing operating efficiencies and a prudent approach to risk.
"With the strongest combined credit rating among any other bank in MENA (of AA- or equivalent), FAB continues to operate from a relative position of strength. This is supported by a robust capital base, ample liquidity, high-quality portfolios, and a diversified business model – all of which reinforce our resilient profile amid evolving market dynamics and heightened uncertainties,” Kramer said.
Key Q1’25 Highlights
• Investment Banking & Markets delivered a strong performance, with revenue growing 15% yoy and 22% qoq. ECM and DCM franchises helped clients raise USD 29 billion in Q1’25, up 56% yoy.
• Wholesale Banking revenue grew 12% yoy underlining strong activity and business momentum across our client franchise, with loans and deposits up 13% and 18% yoy, respectively.
• Personal, Business, Wealth and Privileged Client Banking Group revenue was up 11% yoy and 7% qoq, driven by strong retail momentum, customer acquisitions, and enhanced customer experience leveraging advanced technology and AI. FAB’s wealth and private banking franchise continued to expand, with assets under management growing 57% yoy.
• The international franchise saw significant balance sheet growth, with loans and deposits up 19% and 13% yoy respectively from broad-based geographies.
• FAB continued to leverage technology to enhance customer experience and drive efficiencies through rapid deployment of AI and accelerated digital transformation, improving Net Promoter Score and increasing digital engagement, including mobile wallet Payit crossing the 1 million- customer milestone.
• Customer deposits grew 4% yoy and 7% ytd to AED 839 billion from sizeable inflows across both wholesale and retail, reflecting diversified sources of liquidity. CASA balances grew 5% ytd and 10% yoy, reaching AED 376 billion representing 45% of group deposits.
• FAB raised AED5.3 billion of senior wholesale funding at a competitive pricing. Key landmark transactions included a USD 600 million 5-year Sukuk priced at the tightest spread ever achieved by a MENA bank in public format; and a 5-year USD 750 million Formosa FRN bond at the lowest ever pricing achieved by a MENA bank in the Formosa market.
• Sustainable and transition financing rose to AED284 billion, or 57% of the group's 2030 target of AED500 billion by 2030. FAB issued the first nature report aligned with the Taskforce on Nature-Related Financial Disclosures (TNFD) framework by any MENA bank and continues to have the leading ESG ratings in MENA with the Best Refinitiv ESG Score (top 6% worldwide) and the best MSCI ESG Rating (AA). - TradeArabia News Service
