FAB lifts nine-month pre-tax profit 5 per cent to AED 20.22 billion
Return on tangible equity was 18.6 per cent against guidance of over 16, while impairment charges rose 33 per cent and net profit grew 3 per cent.
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First Abu Dhabi Bank said on 29 October that profit before tax rose 5 per cent to AED 20.22 billion in the first nine months of 2026, on operating income of AED 29.71 billion, up 7 per cent from a year earlier.
Net profit attributable to shareholders grew more slowly, by 3 per cent to AED 16.46 billion, because impairment charges and taxes rose faster than income. Return on tangible equity was 18.6 per cent, against 20.0 per cent a year earlier and the bank's medium-term guidance of over 16 per cent.
Interest income carries the nine months
Net interest income, which includes income from Islamic financing, rose 11 per cent to AED 16.98 billion for the nine months. Non-interest income was AED 12.73 billion, up 3 per cent, and made up 43 per cent of operating income. Net fees and commissions rose 19 per cent on the year, which the bank tied to loan origination.
Operating expenses grew 5 per cent to AED 6.40 billion, so operating profit rose 8 per cent to AED 23.32 billion. The cost-to-income ratio improved to 21.5 per cent from 22.0 per cent.
The third quarter on its own was flatter at the pre-tax line. Profit before tax was AED 7,014 million, 9 per cent above the AED 6,417 million of the third quarter of 2025 but 1 per cent below the second quarter's AED 7,078 million. Quarterly net interest margin was 1.85 per cent, down 14 basis points from the second quarter and up 3 basis points on a year earlier. The nine-month margin was 1.93 per cent, 5 basis points higher than in 2025. Group Chief Financial Officer Lars Kramer said in the results report that FAB "delivered another strong quarter in Q3", with third-quarter operating profit up 11 per cent on the year to AED 8.06 billion.
The quarterly pattern is in the bank's first-half report, which gave pre-tax profit of AED 6.12 billion for the first quarter and AED 7.08 billion for the second, and said that first-half profit included management overlays. Excluding them, the bank said then, pre-tax profit had risen 8 per cent on the year.
Impairments and tax take a larger share
The net impairment charge was AED 3.10 billion for the nine months, up 33 per cent. For the third quarter it was AED 1.05 billion, up 24 per cent on the year and 11 per cent on the second quarter, which the bank said mainly reflected lower recoveries than in the previous quarter. Cost of risk was 62 basis points for the nine months, against 55 a year earlier.
The bank's reviewed interim financial statements add that management recorded an expected credit loss overlay of AED 350 million for the nine months, which it said reflects uncertainty in credit risk arising from the ongoing regional conflict. PricewaterhouseCoopers, the bank's reviewer, said in its report dated 28 October that nothing had come to its attention suggesting the information was not prepared in accordance with IAS 34. The report is a review, not an audit.
Income tax expense in the statements rose to AED 3.70 billion from AED 3.20 billion. Set against pre-tax profit, that is an effective rate of 18.3 per cent against 16.6 per cent a year earlier, a Data Desk calculation from the statements' figures. It explains most of the gap between 5 per cent growth in pre-tax profit and 3 per cent growth in net profit.
Loans grow faster than deposits
Total assets were AED 1.47 trillion at 30 September, up 7 per cent since the end of 2025. Net loans and advances rose 10 per cent over the same period to AED 679 billion, including a 14 per cent increase in Islamic financing, while customer deposits grew 5 per cent to AED 885 billion. Current and savings account balances, at AED 387 billion, were 1 per cent lower than at the year end.
Asset quality improved on the bank's own measures. The gross non-performing loan ratio fell to 2.1 per cent from 2.6 per cent a year earlier, which the bank attributed to write-offs and subdued formation of new non-performing loans, and provision coverage rose to 114 per cent from 106 per cent. The common equity tier 1 ratio was 14.0 per cent, up from 13.7 per cent, while the liquidity coverage ratio was 140 per cent against 158 per cent a year earlier.
By division, Wholesale Banking revenue rose 13 per cent to AED 5.14 billion, Investment Banking and Markets revenue rose 4 per cent to AED 9.33 billion, and the personal, business and wealth group's revenue rose 4 per cent to AED 10.00 billion. International revenue rose 31 per cent and made up 22 per cent of group revenue.
Provisions also feature in our reports on Emirates NBD's nine-month results and on National Bank of Kuwait's. Chief Executive Hana Al Rostamani said the performance reflected "sustained growth across our businesses."