First Abu Dhabi Bank Reports 22% Jump in Q4 Profit, Beats Market Expectations

First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates by assets, delivered a strong financial performance in the fourth quarter, reporting a significant increase in net profit that exceeded market expectations. The Abu Dhabi–based bank announced on Wednesday that its fourth-quarter net profit rose by 22% year-on-year to 5.1 billion dirhams (approximately $1.39 billion), highlighting its continued momentum in a competitive banking environment.

According to data compiled by Reuters and LSEG, analysts had expected First Abu Dhabi Bank to post a quarterly profit of around 4.9 billion dirhams. The actual results surpassed these forecasts, reinforcing investor confidence in the bank’s strategy and operational strength. The solid earnings performance reflects FAB’s ability to capitalize on favorable market conditions and diversify its income streams.

The bank attributed the profit growth primarily to sustained business momentum across its core operations, as well as a notable rise in non-interest income. Increased fees, commissions, and other non-interest revenue sources played a key role in boosting overall operating income during the quarter. This diversification has helped First Abu Dhabi Bank reduce its reliance on traditional interest-based lending and improve resilience amid fluctuating interest rate conditions.

In addition to higher non-interest income, the bank’s disciplined cost management and strong balance sheet also supported its quarterly results. FAB has continued to benefit from its scale, regional presence, and focus on digital banking solutions, which have contributed to efficiency gains and customer growth across the UAE and international markets.

Following the announcement of the better-than-expected results, First Abu Dhabi Bank declared a cash dividend of 80 fils per share for its shareholders. The dividend declaration underscores the bank’s strong capital position and commitment to delivering value to investors while maintaining sustainable growth.

As the UAE’s largest lender, First Abu Dhabi Bank’s fourth-quarter earnings performance offers a positive signal for the regional banking sector. With sustained business momentum, rising non-interest income, and a shareholder-friendly dividend policy, FAB appears well-positioned to maintain its growth trajectory in the coming quarters, even amid global economic uncertainties.