Post by : Bianca
Haleem
First Abu Dhabi Bank (FAB.AD), the UAE's biggest bank by assets, reported a 4% increase in its net profit for the second quarter of 2026, driven by growth in operating income.
The bank said its net profit for the three months ended June 30, 2026, reached AED 5.72 billion (US$1.56 billion). During the same period last year, the bank recorded a net profit of AED 5.51 billion, reflecting steady year-on-year growth in earnings.
Shares Gain Following Quarterly Results
Investors responded positively to the financial results. Following the announcement, FAB's shares rose 2.3%, helping push Abu Dhabi's main stock market index up 0.4% during early trading on Thursday.
The market reaction came after the bank reported stronger earnings and continued growth across its core banking operations.
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Operating Income and Net Interest Income Show Strong Growth
FAB reported that its operating income increased by 7% year-on-year to AED 10.17 billion during the second quarter.
The bank also recorded a 15% rise in net interest income, making it one of the key contributors to the overall improvement in quarterly profitability.
These results highlight stronger income generation during the reporting period while supporting the bank's overall financial performance.
Impairment Charges Rise Compared With Last Year
Alongside higher earnings, the bank also reported an increase in impairment charges.
Net impairment charges reached AED 950 million during the second quarter, compared with AED 752 million recorded in the corresponding quarter a year earlier.
Customer Deposits and Lending Continue to Expand
FAB continued to report growth in its balance sheet during the quarter.
Customer deposits stood at AED 853 billion at the end of June, representing a 5% increase from the previous year.
At the same time, net loans and advances grew by 16% to AED 661 billion, reflecting continued expansion in the bank's lending activities.
Regional Challenges Continue to Affect the Banking Environment
The ongoing Iran war has caused major disruptions to travel and supply chains across the region.
In response to these challenges, UAE authorities have introduced several economic measures, including actions by the country's central bank to support liquidity within the banking sector.
Financial Times Report Mentions Property Exposure
Last month, the Financial Times reported that First Abu Dhabi Bank had exposure to the insolvencies of properties linked to mortgage lender Market Financial Solutions.
The report highlighted the bank's connection to those property-related insolvencies, although FAB did not provide additional details in its quarterly earnings announcement.
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