FAB Q3 profit up 6% as nine-month earnings hit AED16.46bn

FAB Q3 profit increased 6% year on year, the UAE’s largest bank said on Thursday, boosted by higher lending and fee income in the quarter to 30 September.

Quarterly net profit was about AED5.74 billion ($1.56 billion), up from AED5.39 billion in the same quarter last year, Reuters reported. Profit before tax rose 9% to AED7.01 billion ($1.91 billion), First Abu Dhabi Bank said in a statement to the Abu Dhabi Securities Exchange.

Nine-month net profit for 2026 rose 3% to AED16.46 billion ($4.48 billion). Group operating income grew 7% to AED29.71 billion ($8.09 billion) and profit before tax increased 5% to AED20.22 billion ($5.51 billion).

Lending growth lifts interest income

Net interest income increased 11% year on year to AED16.98 billion ($4.62 billion) for the nine months, driven by a net interest margin of 1.93%, an increase of 5 basis points. Non-interest income grew 3% to AED12.73 billion ($3.47 billion), representing 43% of total operating income.

Loans and advances grew 10% year to date to AED679 billion ($184.9 billion) and customer deposits increased by 5% to AED885 billion ($241 billion). Total assets grew to AED1.47 trillion ($400 billion), up 7% year to date. International assets stood at AED437 billion ($119 billion), representing 30% of the group’s total assets.

Nine-month net impairment charges increased by 33% to AED3.10 billion ($844 million), Reuters reported, a rise the bank attributed to its prudent risk management approach in an evolving risk environment. The ratio of non-performing loans nonetheless decreased to 2.1% from 2.6% year on year.

FAB Q3 profit keeps returns above guidance

Nine-month return on tangible equity was 18.6%, compared with 20.0% in the prior-year period and above the bank’s medium-term guidance of over 16%. The common equity tier 1 ratio was 14.0%, compared with 13.7% at September 2025. The liquidity coverage ratio was 140%.

Group chief executive Hana Al Rostamani said the performance reflected “the strength of our franchise and the consistent execution of our strategy”. Group chief financial officer Lars Kramer said operating profit for the quarter was up 11% year on year and that margins “remained resilient”.

Revenue from investment banking and markets rose 4% to AED9.33 billion ($2.54 billion), benefiting from a 22% increase in loans year to date. Revenue in wholesale banking climbed 13% to AED5.14 billion ($1.40 billion). Personal, business, wealth and privileged client banking income amounted to AED10.00 billion ($2.72 billion), up 4%. The international franchise increased revenue by 31% to represent 22% of group income.

Why it matters for UAE banking

FAB is the UAE’s biggest bank by assets and is almost 40% owned by Abu Dhabi sovereign wealth fund Mubadala, according to LSEG data cited by Reuters. The First Abu Dhabi Bank results cap a mixed quarterly performance for the country’s largest lenders, with Abu Dhabi Commercial Bank posting a 15% increase in third-quarter profit and Emirates NBD’s quarterly profit unchanged.

They also come as the UAE economy faces a challenging backdrop. Reuters reported that the International Monetary Fund has forecast that the UAE economy will contract by 3.9% in 2026 before rebounding in 2027, after regional tensions curtailed activity this year. The higher impairment charge reflects FAB provisioning more against that uncertainty.

Al Rostamani said the bank’s focus remains on “translating structural opportunities into sustainable, high-quality growth”, pointing to UAE investment programmes, economic diversification and expanding trade as sources of financing demand. FAB has also set an AED100 billion ($27.2 billion) blue finance target for 2026 to 2035 and said it had facilitated AED417 billion ($113.5 billion) of sustainable and transition financing, or 83% of its AED500 billion goal for 2030.

Investors will look to the fourth quarter for confirmation that the FAB Q3 profit momentum and loan growth of 10% can be sustained and that impairments stabilise as activity in the UAE normalises. The full nine-month results statement is available on FAB’s website.