First Abu Dhabi Bank (FAB) Q2 2025 earnings summary

Executive summary

• Achieved record H1'25 net profit of AED 10.65bn, up 26% year-over-year, with 20.5% ROTE, supported by strong revenue momentum and broad-based business growth.

• Total assets reached AED 1.34tr (+11% year-to-date), loans AED 568bn (+7% ytd), and deposits AED 813bn (+4% ytd), reflecting expansion in UAE and international markets.

• Maintained robust balance sheet with high-quality assets, strong liquidity, and AA- credit rating.

• The group reorganized its operating segments to align with a customer-centric strategy, impacting segment reporting.

• Major acquisition completed: Network International through BCP VI Neptune Bidco Holdings Limited.

Financial highlights

• H1'25 operating income rose 16% year-over-year to AED 18.31bn, with non-interest income up 41% and net interest income up 2%.

• Net profit after tax for H1'25 was AED 10.65bn (+26% yoy), despite a 41% increase in taxes and NCI due to UAE corporate tax.

• Q2'25 net profit after tax was AED 5.51bn (+29% yoy, +7% qoq); operating income AED 9.50bn (+22% yoy, +8% qoq).

• Operating expenses for H1'25 were AED 4.00bn (+4% yoy), with a cost-to-income ratio of 21.8% (down from 24.4% in H1'24).

• Impairment charges fell 23% yoy to AED 1.48bn, reflecting strong asset quality.

Outlook and guidance

• Upgraded 2025 loan growth guidance to low double-digit, reflecting a healthy pipeline.

• FY25 ROTE guidance remains above 16%; CET1 target above 13.5%.

• UAE real GDP growth forecast at 5.2% for FY25; oil price assumption at $67/bbl.

• Interest rates expected to see up to 2 cuts in H2'25 and 3-4 cuts in FY26.

• Management confirmed a going concern basis and adequate resources for the foreseeable future.