<p><strong>First Abu Dhabi Bank (FAB)</strong>, the UAE&rsquo;s largest financial institution, has posted <strong>strong third-quarter earnings</strong>, surpassing market expectations and signaling renewed strength in the region&rsquo;s banking sector.</p>

<p>FAB&rsquo;s <strong>net profit</strong> for Q3 2025 rose by <strong>8.4% year-on-year</strong> to AED 4.5 billion, exceeding analysts&rsquo; projections of AED 4.1 billion. The gains were attributed to higher <strong>net interest income</strong>, steady growth in <strong>corporate lending</strong>, and a surge in <strong>fee-based income</strong> from investment banking and wealth management services.</p>

<p>The bank&rsquo;s <strong>total assets</strong> increased to AED 1.3 trillion, maintaining its position as the largest lender in the UAE and one of the most stable banks in the Middle East. FAB&rsquo;s <strong>capital adequacy ratio</strong> remained strong at <strong>15.9%</strong>, well above regulatory requirements, underscoring the institution&rsquo;s robust financial health.</p>

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<p>&ldquo;Our Q3 results demonstrate FAB&rsquo;s ability to navigate global economic challenges while continuing to deliver solid returns to shareholders,&rdquo; said <strong>Hana Al Rostamani</strong>, Group Chief Executive Officer of FAB. &ldquo;Our diversified business model and disciplined risk management are enabling sustainable growth as we look toward 2026.&rdquo;</p>
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<p>Shares of FAB <strong>rose 2.8% on the Abu Dhabi Securities Exchange (ADX)</strong> following the announcement, marking one of the strongest single-day gains for the bank this year. Analysts say the upbeat results reflect both effective interest-rate management and an improving outlook for the UAE&rsquo;s non-oil economy.</p>

<h3><strong>Key Drivers of Growth</strong></h3>

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	<li>
	<p><strong>Higher Interest Rates:</strong> FAB benefited from elevated global interest-rate levels, which expanded the bank&rsquo;s net interest margin by 0.5 percentage points compared to the same period last year.</p>
	</li>
	<li>
	<p><strong>Corporate Lending Expansion:</strong> The bank recorded a 6% rise in corporate loan demand, particularly in infrastructure, green energy, and trade finance.</p>
	</li>
	<li>
	<p><strong>Fee-Based Income:</strong> Investment banking and treasury operations contributed significantly, reflecting strong performance across international markets.</p>
	</li>
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	<p><strong>Digital Transformation:</strong> FAB continued to enhance its digital services, with mobile transactions growing by 18% year-on-year, and a 25% increase in new digital customer acquisitions.</p>
	</li>
</ol>

<p>The bank&rsquo;s management highlighted its continued investment in <strong>sustainability-linked financing</strong>, noting that ESG-related loans now represent <strong>AED 28 billion</strong> of its total portfolio. FAB recently participated in several green financing initiatives supporting clean-energy projects in the UAE and Saudi Arabia.</p>

<p>Economists say FAB&rsquo;s performance is a positive sign for the broader Gulf banking industry, which has faced mixed results amid global inflation and shifting oil prices. The UAE&rsquo;s diversified economy, supported by robust trade and tourism sectors, has provided a steady backdrop for financial institutions to thrive.</p>

<p><strong>Mohammed Al Suwaidi</strong>, an independent financial analyst, noted that FAB&rsquo;s performance could encourage more international investment into UAE banking stocks:</p>

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<p>&ldquo;FAB&rsquo;s strong results reaffirm investor confidence in the UAE&rsquo;s financial stability and strategic role as a global banking hub.&rdquo;</p>
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<p>Looking ahead, FAB expects continued growth in <strong>retail lending</strong>, digital banking expansion, and regional mergers &amp; acquisitions. The bank also aims to enhance its presence in Asia and Europe through strategic partnerships and cross-border lending.</p>

<p>With the UAE economy forecast to grow by over 4% in 2025, FAB&rsquo;s strong Q3 results have positioned it as a bellwether for regional financial performance, reflecting the country&rsquo;s resilience and evolving role in global finance.</p>