First Abu Dhabi Bank’s profit for the first quarter of 2025 goes up 23% to $1.4 billion thanks to strong global growth

First Abu Dhabi Bank’s profit for the first quarter of 2025 goes up 23% to $1.4 billion thanks to strong global growth

First Abu Dhabi Bank (FAB) said on Tuesday that its net profit for the first quarter rose by 23% compared to the same time last year, reaching $1.4 billion (AED 5.1 billion). This increase was driven by strong growth in all parts of its business and its international operations.

First-Quarter Performance

FAB (First Abu Dhabi Bank) reported a strong start to 2025. In the first quarter, its total income rose by 11% to $2.4 billion (AED 8.8 billion), according to a report filed with the Abu Dhabi Exchange (ADX).

FAB kept its top position in the Middle East and North Africa. Its Investment Banking & Markets division did well, with revenue growing 15% from last year and 22% from the previous quarter, reaching $834.2 million (AED 3 billion). The Wholesale Banking division saw a 12% increase in revenue compared to last year, but a 5% drop from the last quarter, earning $391.2 million (AED 1.4 billion).

The Personal, Business, Wealth, and Privileged Client Banking division also performed well, with revenue going up 11% from last year and 7% from the previous quarter, reaching $856.2 million (AED 3.1 billion).

Operating costs increased by 3% year-on-year to $544.5 million (AED 2 billion). FAB said this was because of ongoing investments, while still keeping operations efficient.

FAB’s total assets grew 6% from last year to $356.6 billion (AED 1.3 trillion) during the quarter.

Revenue from its UAE operations rose 25% to $1.9 billion (AED 7.3 billion). However, revenue from its international business dropped 29% to $408 million (AED 1.5 billion).

FAB said that 70% of its assets are in the UAE, with the remaining 30% abroad. Even though international revenue fell, loans and deposits in those regions grew by 19% and 13% year-on-year, thanks to growth in different countries.

Other Key Highlights

FAB saw growth in major financial areas:

• Net loans, advances, and Islamic financing grew 8% from last year to $149.2 billion (AED 548 billion).

• Deposits went up 4% to $228.4 billion (AED 839 billion), helped by strong lending in retail and other areas.

• Investments increased 12% to $71.6 billion (AED 263 billion), as FAB focused more on fixed income and managing its balance sheet well.

• Over 70% of FAB’s investments are in high-quality securities (rated ‘A’ or higher).

Customer deposits also rose 4% year-on-year to $228.4 billion (AED 839 billion), supported by strong inflows from both business and personal banking. Balances in current and savings accounts grew 10% to $102.3 billion (AED 376 billion), now making up 45% of total deposits.

FAB said it is on track to meet its 2025 target of more than 16% return on tangible equity.

Key Quote

“We are using innovation and AI to improve productivity, make better predictions, and offer better customer service. This year, we even used an AI agent in our first board meeting,” said FAB CEO Hana Al Rostamani.

Published: 30th April 2025

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