UAE’s FAB Beats Profit Estimates on Non-Funded Income Growth

UAE’s FAB Reports Strong Q1 Profit, Driven by Non-Interest Income and Strategic Restructuring

First Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, surpassed analysts’ expectations in its first-quarter financial results, bolstered by a significant growth in non-interest income, particularly fees and commissions.

According to LSEG data, FAB reported a net profit of AED 5.13 billion for the quarter ending March 31, a 23% rise year on year and much higher than the analysts’ projection of AED 4.24 billion.

The strong result was mostly driven by a 22% growth in non-interest income, which reached AED 3.8 billion, while fees and commissions alone increased 23% over the same time last year. Net interest income also increased by 3% to AED 5 billion.

This strong financial performance is in line with FAB’s internal restructuring efforts aimed at improving operational efficiency and increasing shareholder value across the Gulf region. The bank split its operations into four new divisions in the first quarter.

As part of its strategic transformation, FAB appointed former Citi executive Linos Lekkas as the new head of its investment bank. The move follows a number of high-level exits earlier this year, including the previous COO and head of global markets.

Since 2021, FAB has been restructuring its organizational structure, aiming to focus on key growth areas and improve revenue. The bank’s total assets increased by 6% to AED 1.31 trillion, highlighting its leading position in the regional banking sector.