First Abu Dhabi Bank (FAB) investor relations material

Executive summary

• Operating income for Q1 2026 rose 6% year-on-year to AED 9.34 billion, while net profit was AED 5.01 billion, down 2% year-on-year due to AED 300 million in management overlays responding to external risks.

• Loans and advances grew 8% year-to-date, customer deposits increased 4%, and total assets surpassed USD 400 billion for the first time.

• Maintained robust balance sheet, strong liquidity and capital positions, with CET1 at 12.8% and liquidity coverage ratio at 145%.

• Demonstrated operational resilience and business continuity amid heightened regional tensions and market volatility.

• Financial statements reviewed by PwC with no material misstatements identified.

Financial highlights

• Net interest income rose 12% year-on-year to AED 5.61 billion, driving operating income up 6% to AED 9.34 billion.

• Net profit was AED 5.01 billion, 2% lower year-on-year, but up 3% excluding AED 300 million management overlay.

• Net impairment charges increased to AED 1.1 billion, with cost of risk at 67 bps (48 bps excluding overlay).

• Operating expenses rose 7% year-on-year to AED 2.1 billion; cost-to-income ratio at 22.6%.

• Basic and diluted EPS was AED 0.43, down 2% year-on-year.

Outlook and guidance

• Full-year guidance metrics remain unchanged; reassessment planned at half-year mark.

• Macro assumptions updated: average oil price at $83/bbl, UAE GDP growth at 4.2%, and interest rates expected to remain on hold.

• Loan growth guidance for 2026 is low- to mid-teens, with cost of risk expected below 70bps.

• Medium-term ROTE guidance remains above 16%; CET1 ratio target above 13.5%.

• Management continues to monitor macroeconomic and geopolitical risks, with ongoing assessment of credit risk and ECL assumptions.