First Abu Dhabi Bank (FAB) investor relations material

Executive summary

• Delivered record H1 2026 profit before tax of AED 13.2 billion, up 3% year-on-year, or 8% excluding management overlays; RoTE reached 18.5%, above guidance.

• Strong operating performance driven by margin expansion, diversified income streams, and broad-based franchise momentum.

• Asset base reached AED 1.41 trillion, supported by disciplined growth and robust capital generation; CET1 at 13.7%.

• All elements of full-year guidance reaffirmed, with loan growth now expected at the upper end of the guidance range.

• The group maintained strong capital and liquidity positions despite regional geopolitical tensions.

Financial highlights

• Operating income increased 7% year-on-year to AED 19.5 billion, led by 14% growth in net interest income.

• Net profit for H1 2026 reached AED 10.73 billion, up 1% year-on-year; Q2 net profit rose 14% quarter-on-quarter and 4% year-on-year to AED 5.72 billion.

• Non-funded income represented 41% of total revenues, with fees and commissions up 20% year-on-year.

• Operating expenses rose 6% year-on-year to AED 4.25 billion, with a cost-to-income ratio of 21.8%.

• Net impairment charges increased 39% year-on-year to AED 2.05 billion, mainly due to management overlays.

Outlook and guidance

• Full-year guidance reaffirmed, with loan growth now expected at the upper end of the low- to mid-teens range.

• Net interest margin (NIM) expected at the top end of the 1.80%-1.90% range for 2026; NIM for H1 2026 was 1.97%.

• CET1 ratio expected to stay above 13.5% pre-dividend.

• GDP growth assumption for 2026 revised to 3% from 4.2% due to ongoing disruptions, but medium-term outlook remains positive with expected recovery to 4.8% in 2027.

• Management continues to monitor geopolitical developments and expects to maintain financial resilience through strong capital and liquidity.