First Abu Dhabi Bank (FAB) Q4 2025 earnings summary

Executive summary

• Net profit for FY 2025 reached AED 21.11 billion, up 24% year-on-year, with revenue at AED 36.68 billion, up 16% year-on-year, reflecting consistent progress in scale and value creation.

• Return on tangible equity (RoTE) was 19.2%, exceeding medium-term guidance, and all elements of FY 2025 guidance were surpassed.

• The board recommended a record cash dividend of 80 fils per share (AED 8.84 billion total), subject to shareholder approval.

• Broad-based growth was achieved across all divisions, with significant advances in AI deployment and digital transformation.

• Strong balance sheet fundamentals and robust capital position support sustained growth.

Financial highlights

• Profit before tax grew 27% year-on-year to AED 25.2 billion; net profit rose 24% to AED 21.11 billion, absorbing the impact of corporate tax increases.

• Operating income increased 16% to AED 36.68 billion, with net interest income up 4% and non-interest income up 36%.

• Lending grew 17% and customer deposits rose 7% year-on-year; cost-to-income ratio improved to 22.4%.

• Q4 2025 net profit was AED 5.09 billion, up 22% year-on-year; operating income up 17%.

• Net impairment charges fell 17% year-on-year to AED 3.28 billion, supported by improved asset quality.

Outlook and guidance

• Loan growth for 2026 is guided at low- to mid-teens, building on 2025 momentum.

• Cost of risk expected below 70 basis points, with provision coverage above 90%.

• Medium-term RoTE reaffirmed above 16%; CET1 guidance maintained above 13.5%.

• UAE real GDP growth forecasted at 5.6% for 2026, with a constructive macro backdrop and up to 50bps Fed rate cuts anticipated.