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First Abu Dhabi Bank reported a fourth-quarter net profit of 5.1 billion dirhams for 2025, marking a 22 percent increase that exceeded the 4.9 billion dirhams mean estimate compiled by LSEG, a Reuters report stated. The UAE’s largest bank by assets achieved a record full-year net profit of 21.1 billion dirhams, representing roughly 23 percent growth from 17.1 billion dirhams the previous year, an earlier FAB annual report indicated. Revenues rose with a 36 percent jump in non-interest income providing much of the uplift as the lender benefited from sustained business momentum across its operations.
Loans and advances at the group expanded 17 percent to 616 billion dirhams during 2025 while customer deposits climbed 7 percent to 841 billion dirhams, the bank said in its results announcement. These figures helped total assets reach 1.4 trillion dirhams by the end of December. Credit across the UAE banking system grew about 18 percent to 2.57 trillion dirhams over the same period, according to Central Bank of the UAE statistics detailed in a sector review.
Chief Financial Officer Lars Kramer noted that the composition of earnings continued to evolve positively with a higher contribution from non-funded income and steady delivery across business lines and geographies. The bank proposed a cash dividend of 80 fils per share for shareholders. Operating efficiency also strengthened as the cost-to-income ratio improved to 22.4 percent from 24.6 percent a year earlier, a subsequent analysis published by The Asian Banker found.
The UAE banking sector enjoyed robust profitability throughout 2025 supported by rising credit demand from economic diversification into tourism, infrastructure and other non-oil areas. An Alvarez & Marsal review of the first quarter showed aggregate net income for the top 10 listed banks rising 8.4 percent quarter-on-quarter to 22.2 billion dirhams on reduced impairment charges and higher fee income. This momentum carried into later quarters as lending accelerated in corporate and wholesale segments, sector data showed.
With sovereign wealth fund Mubadala as its largest shareholder, FAB reinforced its position as the country’s leading financial institution. The bank reported return on tangible equity consistently above 20 percent through much of the year in quarterly updates. Such metrics highlighted the sector’s resilience even as the introduction of corporate tax affected bottom-line calculations without halting expansion.
The group’s international franchise and diversified revenue streams contributed to the overall performance that saw operating income advance 16 percent to 36.68 billion dirhams for the full year. FAB has invested in artificial intelligence and technology to boost productivity and client services, according to statements from its executives. These initiatives align with broader efforts by UAE banks to enhance operational efficiency amid a competitive landscape.
