Latest news with #FirstAbuDhabiBank
Arabian Business
4 days ago
- Business
- Arabian Business
Smart Capital, Smarter Homes: FAB new services offer business-minded investors a strategic edge
First Abu Dhabi Bank (FAB) offers a timely solution for professionals, investors, and high-net-worth individuals seeking efficient and cost-conscious conventional and Islamic home financing in a rising interest/profit rate environment and an increasingly competitive property market. Through its FAB Elite Mortgage and FAB Islamic Elite home finance options, the bank delivers financial products that appeal to the bottom line, without compromising flexibility or compliance preferences. Real estate remains a cornerstone of long-term wealth accumulation, and in the UAE's dynamic property landscape, buyers are increasingly looking for tailored financial solutions. FAB understands this demand and has launched exclusive mortgage and Islamic home finance offers that not only support ownership of premium properties but also enhance one's broader investment strategy. Whether it's purchasing a high-end residence, completing a developer handover, or planning to expand your real estate portfolio, FAB Elite home financing's fixed-rate options, starting at 3.99% deliver a rare mix of stability and value with a variety of rewards. Mortgage and finance clients can save up to AED 25,000 in processing and associated fees, an enticing incentive for first-time buyers or investors targeting luxury units. For those refinancing or transferring an existing loan/finance, the perks are just as compelling. Clients can avail up to 180 days of grace before their first payment. They are also eligible for refunds on processing and valuation fees with no early settlement charges and a full waiver on mortgage or home finance buyout fees. These benefits ensure that both new and existing property owners can optimize their financial planning while securing high-value assets. Favourable rates and cost savings are not the only benefits of the new services. FAB is raising the stakes with an extraordinary incentive: a chance to win up to 1.5 KG of gold. Every eligible mortgage or home finance application is automatically entered into this exclusive draw, adding an exciting layer of reward to an already interesting opportunity. For those seeking Islamic finance options, FAB Islamic's Elite Home Finance also offers competitive offerings. Clients enjoy the same fixed profit rate of 3.99%, identical savings, and gold giveaway eligibility, all within a fully Shariah-compliant framework. The tailored service includes access to exclusive Islamic credit card products that align with your lifestyle and ethical values, underscoring FAB Islamic's commitment to principled yet powerful financial solutions. Every investor receives dedicated support from FAB's expert mortgage and home finance advisors, professionals skilled in navigating the complexities of property transactions and optimising high-value deals. Whether acquiring a luxury holiday home, diversifying a global portfolio, or preparing to transfer wealth across generations, FAB ensures every step is strategically sound. With up to five years of fixed-rate certainty, investors can lock in today's attractive rates and ride out potential fluctuations in future financing costs, securing both peace of mind and long-term profitability. In an age where informed property investment is a mark of true financial acumen, FAB's Elite Mortgage and Elite Home Finance go beyond traditional lending. They represent a gateway to wealth preservation, lifestyle enhancement, and unique rewards, gold included. For discerning investors who demand more than just a home, FAB delivers property finance with the polish, precision, and prestige they deserve.
Zawya
5 days ago
- Business
- Zawya
Mideast Stocks: Gulf markets dip as trade uncertainty, mixed earnings weigh on sentiment
Gulf stocks edged lower in choppy trading on Thursday as investors weighed a raft of corporate earnings and monitored U.S. trade negotiations ahead of a tariff deadline. While recent developments, including Washington's deal with Tokyo to lower tariffs on Japanese imports and signs of potential agreement with the European Union, appeared constructive, market participants remained cautious, awaiting clarity on the direction of global trade policy. Saudi Arabia's benchmark index eased 0.2%, with index heavyweight Al Rajhi Bank losing 0.5%, while Alinma Bank declined 1.6%, despite reporting a rise in second-quarter earnings. The Abu Dhabi index fell 0.1%, as a flurry of upcoming earnings kept the investors on the sidelines, with the country's biggest lender First Abu Dhabi Bank retreating 1.2%, a day after jumping 5% on upbeat earnings. Shares of Bank of Sharjah fell more than 2% as traders locked in profits following a two-digit percentage rally in the previous session on strong half-year results. Dubai's main share index was little changed in narrow trade, as a 2.3% drop in Emirates NBD weighed on sentiment. The top lender reported a 9% decline in first-half profit, hit by lower recoveries and a higher tax rate, making financials the worst-performing sector on the index. Qatar stock index was marginally down, but held near a two-and-a-half-year high. (Reporting by Amna Mariyam and Ateeq Shariff in Bengaluru; Editing by Mrigank Dhaniwala)
Yemen Online
5 days ago
- Business
- Yemen Online
FAB's Record H1 2025 Earnings: A Strategic Case for Undervalued Growth in the UAE Banking Sector
First Abu Dhabi Bank (FAB) has shattered expectations with its record-breaking first-half 2025 financial performance, posting a net profit of AED 10.63 billion—a 26% year-on-year increase—and a Return on Tangible Equity (RoTE) of 20.5%. These figures not only outpace industry benchmarks but also underscore FAB's emergence as a leader in AI-driven innovation and diversified revenue generation. For investors, this represents a compelling opportunity to capitalize on a bank that is redefining the UAE banking sector's growth trajectory while trading at a discount to its intrinsic value. FAB's strategic embrace of artificial intelligence (AI) has positioned it as a pioneer in digital banking. The deployment of a foundational Agentic AI platform, coupled with the rollout of Microsoft MSFT -0.28% 365 Copilot for all employees, has streamlined operations and enhanced decision-making. Innovations such as the Board AI Observer—a tool that analyzes boardroom discussions to optimize governance—and Voice Concierge, which personalizes customer service, have significantly improved operational efficiency. These advancements have reduced the cost-to-income ratio to 22.3% in Q1 2025 (down from 24% a year earlier), while boosting customer satisfaction and retention. The integration of AI into credit analytics and onboarding processes has further strengthened FAB's risk management framework. By automating underwriting and fraud detection, the bank has reduced loan impairments and accelerated customer acquisition. This technological edge is not just a cost-saving measure—it's a revenue driver. For instance, FAB's AI-powered investment banking division secured a landmark deal to finance one of the region's largest data center projects, contributing to a 17% year-on-year revenue increase in its global markets segment. FAB's revenue model is increasingly resilient, with non-interest income surging 41% to AED 8.35 billion in H1 2025. This growth was fueled by a 25% rise in fees and commissions and a 30% increase in foreign exchange and investment income. The bank's non-interest income now accounts for 46% of total revenue—a stark contrast to the UAE banking sector's average of 38%. This diversification insulates FAB from interest rate fluctuations and positions it to thrive in a low-rate environment. Geographic diversification further amplifies this resilience. FAB's international operations, spanning 16 countries, contributed 30% year-on-year revenue growth in H1 2024. Its recent membership in the Cross-Border Interbank Payment System (CIPS) as the first bank FRBA -- in the MENA region has unlocked new cross-border transaction opportunities, particularly in China and Asia. Domestically, FAB's expansion into wealth management, personal banking, and corporate finance has driven 12% revenue growth in these segments.
Khaleej Times
6 days ago
- Business
- Khaleej Times
First Abu Dhabi Bank crosses Dh10b in H1 profit on strong growth
First Abu Dhabi Bank (FAB), the UAE's largest lender and one of the world's top-rated financial institutions, has reported a record net profit of Dh10.63 billion for the first half of 2025, marking a 26 per cent year-on-year increase and crossing the Dh10 billion milestone for the first time in a six-month period. The remarkable performance was underpinned by broad-based growth across business lines, accelerated customer acquisition, and expanding regional and global connectivity, the lender said in a statement. Total operating income rose 16 per cent year-on-year to Dh18.31 billion, driven by diversified revenue streams. Net interest income edged up two per cent to Dh9.96 billion, while non-interest income surged by 41 per cent to Dh8.35 billion, fueled by strong deal origination, rising fee and commission income, and robust foreign exchange and investment activity. Profit before tax reached Dh12.83 billion, a 29 per cent rise from the year-ago period. Return on Tangible Equity (RoTE) stood at 20.5 per cent, well above the bank's medium-term guidance of over 16 per cent. Earnings per share increased by 27 per cent to Dh0.93. Net profit for the second quarter alone rose 29 per cent year-on-year to Dh5.51 billion, reflecting the bank's consistency in delivering growth at scale. FAB's balance sheet remains a pillar of strength, with total assets growing 11 per cent year-to-date to Dh1.34 trillion. Loans and advances increased seven per cent to Dh568 billion, while customer deposits climbed four per cent to Dh813 billion, showing healthy traction across both wholesale and retail segments. Asset quality improved, with the non-performing loan ratio declining to a multi-year low of 2.84 per cent. FAB's Common Equity Tier 1 (CET1) ratio was a solid 13.4 per cent, and its liquidity coverage ratio stood at 152 per cent. The bank also continues to hold the strongest combined credit ratings in the region (AA- or equivalent). Group CEO Hana Al Rostamani said the exceptional results reinforce FAB's status as the UAE's global bank and a trusted partner in national development. 'We achieved new highs in the first half of 2025, driven by scale, connectivity, and AI-powered innovation. We are embedding AI into every aspect of our operations — from client onboarding and credit analytics to customer engagement and internal processes,' she said. Notably, FAB rolled out Microsoft 365 Copilot across the organisation, introduced tools like Voice Concierge and AI-driven financial planning platforms, and launched a Board AI Observer. These initiatives, according to the CEO, are already delivering measurable improvements in efficiency and client satisfaction. FAB also became the first Mena bank to join China's Cross-border Interbank Payment System (CIPS) as a direct participant, a move expected to deepen its East-West connectivity and enable new corridors for cross-border flows. Group CFO Lars Kramer said FAB's consistent and disciplined execution, supported by diversified growth, robust risk management, and targeted AI investments, has positioned the bank for long-term success. 'We delivered double-digit revenue growth across all divisions, showing strong client engagement in a dynamic market. We're also proud to have launched the region's first blockchain-based digital bond, further underlining our role in shaping the future of capital markets,' Kramer said. The bank's divisions recorded solid performances. Investment Banking and Markets saw a 17 per cent increase in revenue, backed by leadership in capital markets and landmark transactions, including financing one of the region's largest data centre projects. Wholesale Banking revenue rose 12 per cent, driven by increased activity across key economic sectors and new mandates. Personal, Business, and Wealth Banking delivered 12 per cent growth, with assets under management in private banking and wealth rising 61 per cent. Internationally, FAB's franchises in the UK, France, Switzerland, and Saudi Arabia posted strong performance, with loans and deposits growing 28 per cent and 24 per cent year-on-year, respectively. On the ESG front, the bank facilitated Dh318 billion in sustainable and transition finance by mid-2025, achieving 64 per cent of its Dh500 billion 2030 target. It maintains top-tier ESG ratings (MSCI AA, Refinitiv top 6 per cent globally).
Arabian Business
6 days ago
- Business
- Arabian Business
First Abu Dhabi Bank's H1 2025 profit jumps 26% to record AED10.63bn on strong non-interest income
First Abu Dhabi Bank (FAB) on Tuesday reported a 26 per cent year-on-year rise in first-half net profit to AED 10.63 billion ($2.90 billion), its highest ever for a six-month period, boosted by strong fee and trading income and steady loan growth. The UAE's largest lender said operating income for the six months to June 30 rose 16 per cent to AED 18.31 billion, while profit before tax increased 29 per cent to AED 12.83 billion. Earnings per share rose 27 per cent to AED 0.93. Return on tangible equity reached 20.5 per cent, up from 17.3 per cent a year earlier and above the bank's medium-term guidance of over 16 per cent. Net interest income for the period grew 2 per cent year-on-year to AED 9.96 billion, while non-interest income surged 41 per cent to AED 8.35 billion, driven by a 25 per cent rise in fees and commissions and a 30 per cent increase in foreign exchange and investment income. Chief Executive Hana Al Rostamani said the bank's record performance 'reinforces FAB's position as the UAE's global bank,' citing the lender's 'scale, connectivity, and innovation, with AI increasingly embedded in how we operate and how we serve our clients.' First Abu Dhabi Bank's second-quarter net profit rose 29 per cent year-on-year to AED 5.51 billion, with all business divisions delivering double-digit revenue growth. Loans and advances at the end of June were AED 568 billion, up 7 per cent since December, while customer deposits grew 4 per cent to AED 813 billion. Total assets rose 11 per cent year-to-date to AED 1.34 trillion. The non-performing loan ratio improved to 2.84 per cent, and the common equity tier-1 (CET1) ratio stood at 13.4 per cent. The liquidity coverage ratio was 152 per cent. Chief Financial Officer Lars Kramer said the results reflected 'diversified revenue growth, resilient margins, prudent risk management, and targeted investments in technology and AI.' He also highlighted the bank's issuance of the region's first blockchain-based digital bond as 'a milestone that underscores FAB's leadership in shaping the future of capital markets in the region.' First Abu Dhabi Bank's investment banking and markets revenue rose 17 per cent year-on-year, underpinned by strong origination and leadership in MENA capital markets. Wholesale banking revenue grew 12 per cent, and personal, business, wealth, and privileged client banking revenue rose 12 per cent, with a 61 per cent increase in private banking and wealth assets under management. Internationally, loans and deposits rose 28 per cent and 24 per cent, respectively, led by growth in the UK, France, Switzerland, and Saudi Arabia. The bank also became the first in the MENA region to join China's Cross-border Interbank Payment System (CIPS) as a direct participant. First Abu Dhabi Bank said it has facilitated AED 318 billion in sustainable and transition financing to date — 64 per cent of its AED 500 billion target for 2030 — and has maintained its AA- or equivalent credit rating, the strongest combined rating among MENA banks.
