First Abu Dhabi Bank posts 22% jump in Q4 profit, tops estimates

First Abu Dhabi Bank posted a 22 percent year-on-year rise in fourth-quarter net profit to AED 5.1 billion, roughly $1.39 billion, beating analysts’ mean estimate of AED 4.9 billion. The quarter capped a record 2025 for the UAE’s largest bank by assets, with full-year net profit of about AED 21.1 billion and operating income rising to AED 36.68 billion, up 16 percent from a year earlier.

The bank said non-interest income was the standout driver of growth. Fees and commissions climbed 28 percent, while foreign-exchange and investment income expanded about 40 percent, as trading and transaction volumes reached record levels. Non-interest income totaled AED 16.35 billion for the year, a 36 percent increase and equivalent to 45 percent of group revenue. Management framed the shift as a structural change in the bank’s revenue mix. As CFO Lars Kramer put it, “the composition of earnings continued to evolve positively, with a higher contribution from non‑funded income and steady delivery across business lines and geographies.”

Lending and deposit growth were also robust. Loans and advances ended 2025 at AED 616 billion, up 17 percent year-on-year, while customer deposits climbed 7 percent to AED 841 billion. Total assets rose 16 percent to about AED 1.4 trillion. International operations gained traction: international loans jumped 35 percent and international deposits rose 25 percent, with cross-border business contributing 19 percent of group revenue.

The strength in earnings allowed FAB to propose a cash dividend of 80 fils per share and to report industry-leading profitability metrics. Return on tangible equity reached 19.2 percent, and profit before tax for the year was AED 25.20 billion. Capital and liquidity buffers remained robust, with a Common Equity Tier 1 ratio of 13.3 percent and a liquidity coverage ratio of 154 percent at year-end. Asset quality improved, with the gross non-performing loans ratio at an all-time low of 2.2 percent; management cited conservative underwriting and effective risk controls amid rapid loan growth.

CEO Hana Al Rostamani linked the outcomes to execution and strategy, saying the results reflected “the strength of our franchise and the disciplined execution of our strategy throughout the year,” and that FAB enters 2026 “with strong momentum and a focused strategic road map.”

Macro and market context underpinned the performance. Banks across the Gulf have benefited from rising demand for credit as UAE and regional governments accelerate investment in tourism, infrastructure and economic diversification away from oil. The UAE economy is projected to have grown around 5 percent in 2025, supporting corporate and consumer lending and fee-generating capital markets activity.

For investors and policymakers the key takeaway is twofold: FAB has materially diversified revenue away from pure net interest income, reducing sensitivity to short-term rate swings, while maintaining conservative capital and liquidity positions. That combination supports near-term shareholder returns and a sustained lending push. Risks remain, notably the durability of asset quality if credit expands rapidly and whether a future turn in global rates would compress margins despite stronger fee income. With Mubadala as its largest shareholder, FAB’s performance will be watched as a barometer of the UAE banking sector’s ability to finance the country’s economic transition.