FAB posts $4.5bn nine-month profit as impairment charges climb 33%
Higher operating income carried First Abu Dhabi Bank through the first nine months of 2026, even as provisions for credit losses rose and return on tangible equity slipped.
First Abu Dhabi Bank earned $4.5 billion (AED 16.46 billion) in the first nine months of 2026, 3% more than in the same stretch a year earlier, as stronger operating income absorbed a heavier charge for bad loans.
Operating income for January to September reached $8.1 billion (AED 29.71 billion), up 7% from $7.5 billion (AED 27.65 billion). Net interest income, which includes Islamic financing and investment products, grew 11% to $4.6 billion. Fees and commissions brought in $1.1 billion (AED 4.2 billion), a 19% increase. Pre-tax profit rose 5% to $5.5 billion (AED 20.22 billion), and the cost-to-income ratio tightened to 21.5% from 22%.
Provisions rise against a harder regional backdrop
Impairment charges climbed 33% to $844.1 million (AED 3.1 billion), driven by higher credit-risk provisions as the region's outlook darkened. FAB also booked an extra $95.3 million (AED 350 million) as an overlay in its interim statements, covering credit exposure tied to the ongoing regional conflict that its models may not fully capture.
The bank said it will keep revisiting credit classifications, borrower restructuring arrangements and expected credit losses as economic conditions and regulatory guidance shift. It flagged impairment charges and interest margins as the two figures that will shape its fourth-quarter result.
Return on tangible equity fell to 18.6% from 20% a year earlier but held above the medium-term guidance of more than 16%. The non-performing loan ratio improved to 2.1% from 2.6%. Common equity Tier 1 capital stood at 14%, and the liquidity coverage ratio was 140%, against 158% in September 2025.
Third quarter
For the three months to September, profit rose 6% to $1.6 billion (AED 5.74 billion), and quarterly operating profit was up 11% at $2.2 billion (AED 8.06 billion). Non-interest income gained 13% to $1.3 billion (AED 4.71 billion) on higher fees and investment-related activity. The net interest margin narrowed to 1.85% from 1.99% in the preceding quarter.
Balance sheet and the international arm
Net loans and advances ended September at $184.9 billion (AED 678.9 billion), 10% above the December 2025 level. Customer deposits rose 5% to $241 billion (AED 884.9 billion), and total assets were 7% higher at $400.8 billion (AED 1.47 trillion). The UAE accounted for 70% of group assets.
International banking revenue jumped 31% year on year and made up 22% of group revenue, while global markets transaction volumes rose 45%.
AI workflows, green notes and rankings
FAB counted more than 6,000 AI agents built by employees and reported cutting trade-document processing times by over 70% through AI-enabled workflows. In October it issued $272.3 million (AED 1 billion) in digitally native green notes, following its expansion into tokenized deposit transactions through Swift Ledger. Sustainable and transition financing reached $113.5 billion (AED 417 billion), equal to 83% of a $136.1 billion (AED 500 billion) target for 2030.
Under the Central Bank of the UAE's Financial Institution Resilience Package, now extended to January 15, 2027, the bank continues to run temporary restructuring and payment-relief measures for affected borrowers.
The bank placed ninth on a 2026 ranking of the Middle East's 100 most valuable companies. Group CEO Hana Al Rostamani took 11th place on a 2026 Top 100 CEOs list and first in the banking category of a 2026 sustainability leaders ranking.
The arithmetic behind the headline is a familiar trade: the loan book grew twice as fast as the deposit base, and margin paid for some of it. Net interest margin slipped to 1.85% while provisions rose by a third. How much more of the conflict's credit damage lands on the books before December will decide whether the fourth quarter closes that gap.
