First Abu Dhabi Bank Posts Record AED10.63bn Profit In H1 2025

Photo: WAM

First Abu Dhabi Bank (FAB), which is the largest bank in the United Arab Emirates, has announced a record-breaking financial performance for the first half of the year 2025. The bank reported that its net profit reached AED10.63 billion, which is a huge increase of 26 percent compared to the same period last year. This is the first time that FAB’s net profit has crossed AED10 billion in just six months, marking a major milestone for the bank.

Strong Earnings Per Share and Return on Equity

The bank also shared that its earnings per share (EPS) grew by 27 percent year-on-year and now stands at AED0.93 in the first half of 2025. This means that for every share an investor holds, they get AED0.93 in earnings, which is very good for shareholders. In addition, the bank’s Return on Tangible Equity (RoTE), which shows how well the bank uses its equity to make profits, reached 20.5 percent. This is well above the bank’s medium-term guidance of over 16 percent, showing that FAB is performing even better than its targets.

Profit Before Tax Also Increased Sharply

FAB also reported that its profit before tax increased by 29 percent, reaching AED12.83 billion. This strong growth was driven mainly by a 16 percent year-on-year rise in operating income, which totalled AED18.31 billion in the first half of 2025. Operating income includes all the money the bank earns before paying for expenses and taxes.

Growth in Net Interest and Non-Interest Income

Looking deeper into the bank’s income, its net interest income rose by 2 percent year-on-year, reaching AED9.96 billion. Net interest income is the money banks earn from giving out loans and charging interest, minus the interest they pay on deposits. On the other hand, non-interest income grew by 41 percent to AED8.35 billion. Non-interest income includes money earned from fees, commissions, trading, and investments. This increase was mainly because of a 25 percent rise in fees and commissions, which came from strong deal-making activities, and a 30 percent increase in foreign exchange (FX) and investment income. The bank said that this growth was supported by robust client flows and a strong trading performance.

Loans and Customer Deposits Increased

In terms of loans, FAB reported that loans and advances rose by 7 percent from the beginning of the year, reaching AED568 billion. This shows that the bank gave out more loans to its customers, which is good for its future income. At the same time, customer deposits also increased by 4 percent to AED813 billion. Deposits are important for banks because they use the money deposited by customers to give out loans and invest in different areas to earn profits.

Total Assets Continue to Grow

FAB’s total assets grew by 11 percent from the beginning of the year, reaching AED1.34 trillion. Total assets include everything that the bank owns, like cash, investments, loans given out, and other valuable items. This shows that FAB is growing stronger and becoming more stable as a bank.

Comments from FAB’s Leaders

Hana Al Rostamani, who is the Group Chief Executive Officer (CEO) of FAB, said that this record performance proves FAB’s strong position as the UAE’s Global Bank. She mentioned that the results show how the bank is large in scale, connected to many markets, and always looking for innovative solutions. She also said that Artificial Intelligence (AI) is playing an increasing role in how FAB works and how it serves its clients. According to her, AI is helping the bank operate better and provide improved services to its customers.

Lars Kramer, who is the Group Chief Financial Officer (CFO) of FAB, said that the bank achieved broad-based growth with all divisions reporting double-digit revenue growth. He explained that this shows FAB is using its resources effectively, building stronger relationships with its clients, and keeping clients engaged even in changing market conditions. Kramer added that effective balance sheet deployment and sustained client engagement were key factors behind the strong financial performance in the first half of 2025.

What This Means for FAB and UAE

This record profit is a sign that FAB is growing rapidly and performing well even when the global economic environment has many challenges. The growth in loans and deposits shows that people trust FAB with their money and business needs. The rise in non-interest income also indicates that FAB is not just depending on lending activities but is making money through other services like investments, trading, and providing financial advice.

FAB’s Focus on Innovation and AI

FAB is focusing a lot on digital transformation and AI, which is helping it to serve its clients in better and faster ways. By using AI in its operations, the bank can reduce costs, make fewer errors, and provide services like quick loan approvals, better investment advice, and smarter customer support. This focus on technology is also making FAB ready for the future as banking becomes more digital worldwide.

A Strong Start to 2025

Overall, the first half of 2025 has been very successful for First Abu Dhabi Bank. With a net profit crossing AED10 billion for the first time in just six months, an increase in earnings per share, strong returns on equity, and growth in both interest and non-interest income, FAB has shown that it is moving in the right direction. Its focus on innovation, AI, and building strong client relationships will continue to support its growth in the coming months.

The bank’s leadership team, led by Hana Al Rostamani and Lars Kramer, seem confident about the future and are working to ensure FAB remains the leading bank in the UAE and a strong global player in the banking sector. For customers, investors, and the UAE’s economy, FAB’s performance is a positive sign of stability, trust, and growth.