First Abu Dhabi Bank Q1 Net Profit Jumps 23%, Beats Estimates
Strong Profit Growth
First Abu Dhabi Bank reported a Q1 2025 net profit of AED 5.13 billion. The profit rose 23% year-on-year and beat analysts’ estimate of AED 4.24 billion. FAB remains the UAE’s largest lender by market capitalisation and continues to outperform expectations. This performance reflects the bank’s strong management and diversified revenue base across all business segments.
Earnings Per Share Increases
Earnings per share rose to AED 0.44, up from AED 0.35 in Q1 2024. The bank delivered strong returns amid challenging market conditions and new tax policies. Shareholders benefited from consistent growth and efficient cost management strategies by the bank.
Operating Income Rises
First Abu Dhabi Bank’s operating income grew 11% to AED 8.81 billion. Lars Kramer, CFO of FAB, said the bank offset higher UAE corporate taxes with growth. FAB achieved this despite rising cost pressures and macroeconomic uncertainties during the quarter.
Non-Interest Income Drives Performance
Non-interest income surged 22% to AED 3.8 billion during the quarter. Net fee and commission income rose to AED 1.2 billion from AED 981 million. FAB posted a 3% rise in net interest income, reaching AED 5 billion. Growth came from stronger investment banking, markets, and robust client activity.
Improving Asset Quality
Impairment charges dropped 29%, boosting bottom-line performance and reflecting better asset quality.
Chiradeep Ghosh of SICO Bank noted stronger fee income and improving loan quality as key drivers.
Loan and Deposit Growth
Loans increased 8% year-on-year while deposits grew 4% during the quarter. The growth reflects solid demand and strong customer confidence in First Abu Dhabi Bank.
Balance Sheet Milestone
First Abu Dhabi Bank’s total assets crossed AED 1.3 trillion for the first time. The bank achieved a 6% year-on-year rise in total assets, marking a major milestone.
Conclusion
First Abu Dhabi Bank delivered a strong Q1 2025 performance with growth across all key metrics. The bank remains on track to sustain growth while adapting to regulatory and market changes. FAB continues to lead regional peers through resilience, innovation, and customer-focused strategies.