First Abu Dhabi Bank: Comprehensive Financial Performance Analysis 2025

First Abu Dhabi Bank was established in 2017 as a result of the merger of two of the oldest Emirati banks: First Gulf Bank and National Bank of Abu Dhabi. This merger was part of a national Emirati strategy to enhance the banking sector and make it more competitive regionally and internationally. This merger marked a turning point in the UAE banking market, combining a massive customer base, substantial capital, and a wide branch network. The bank's headquarters is located in Abu Dhabi, and it is today the largest financial institution in the UAE in terms of assets and capital. First Abu Dhabi Bank has a prominent regional and global presence, with branches and offices in Gulf countries, the Middle East, North Africa, Asia, Europe, and America. The bank's success is attributed to a clear management vision focused on smart expansion, sound governance, and the adoption of the latest banking technologies. Additionally, strong government support and institutional trust have helped enhance its stability and leadership position in the Gulf banking sector.

First Abu Dhabi Bank is characterized by a wide regional and international footprint, with branches and offices in the Gulf Cooperation Council countries, North Africa, Asia, Europe, and America. In the UAE, the bank dominates a large segment of the banking market, while it has a strong presence in Egypt through FAB Misr, as well as in India (Mumbai), London, Paris, Singapore, and others. The bank relies on partnership and collaboration strategies with local and regional financial institutions to capitalize on growth opportunities in various markets. First Abu Dhabi Bank regularly participates in financial and investment events in Saudi Arabia, such as the Morgan Stanley Saudi Conference and the Middle East Conference, which enhances its relationships with the Saudi financial sector and allows it to closely monitor developments in the Gulf markets. This international presence gives it the ability to diversify revenue sources and expand its customer base while effectively managing risks associated with market fluctuations.

First Abu Dhabi Bank achieved strong financial results in 2024 and 2025, benefiting from improved regional economic conditions and rising interest rates. The bank's total assets reached approximately AED 2,300 billion by the end of 2024 (about $627 billion), reflecting its position as the largest bank in the UAE. In terms of profits, the bank recorded an annual net profit exceeding AED 17 billion in 2024, compared to around AED 13-14 billion in 2023. This growth is attributed to increased interest income, improved credit portfolio quality, and reduced provisions for non-performing loans. The bank also maintained a high return on equity exceeding 15%, a commendable level within the regional banking sector. These figures reflect the bank's ability to achieve sustainable growth, with effective risk management and optimal capital utilization.

First Abu Dhabi Bank has adopted a regular and attractive annual dividend distribution policy, having approved a distribution of AED 0.71 per share for 2023 and AED 0.75 per share for 2024. Considering the average share price ranged between AED 20 and AED 22 during the same period, the annual yield per share was about 3-4%. This ratio is among the highest among Gulf banks, making the bank's shares attractive to investors seeking stable income distribution. The bank's policy of gradually increasing dividends reflects its financial stability and ability to achieve rising profits. However, it is important to note that future distribution trends depend on business results and market conditions, and it is always advisable to review official data before making any investment decision.

The financial indicators of First Abu Dhabi Bank present a strong and balanced picture. For instance, the price-to-earnings (P/E) ratio in early 2025 was around 8-9 times, reflecting a moderate valuation of the stock compared to its annual earnings. The dividend yield ranged between 3% and 4% during 2024 and 2025, indicating a stable distribution policy. The bank's capital stood at approximately AED 30.8 billion, distributed over 30.8 billion shares, while its market value exceeded AED 600 billion by the end of 2024. The non-performing loan ratio remained relatively low, with improved credit portfolio quality and increased coverage ratios. These indicators reflect the bank's ability to balance growth with prudent risk management, placing it among the major Gulf banks in terms of creditworthiness.

First Abu Dhabi Bank is a key player in the Gulf banking sector, which is witnessing intense competition among major financial institutions such as Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Abu Dhabi Islamic Bank in the UAE. Regionally, its competitors include Saudi banks such as Al Rajhi Bank and National Commercial Bank, as well as Qatari and Bahraini banks. The dynamics of competition are influenced by global economic shifts, rising interest rates, and banks' moves towards digitization and financial technologies. First Abu Dhabi Bank has a competitive advantage characterized by strong capital, high credit ratings, and international reach. It also focuses on developing advanced digital solutions and strategic partnerships to enhance its market position. In this competitive environment, the bank remains committed to accelerating digital transformation and improving the quality of financial services provided to individuals and businesses.

Although First Abu Dhabi Bank is not listed on the Saudi stock market (Tadawul), it has an active presence in the Saudi financial market through its regular participation in financial conferences and events. The bank participated in the Morgan Stanley Saudi Conference and the Middle East Conference in May 2025, underscoring its interest in enhancing cooperation and integration with Saudi financial institutions. The bank also participates in financing joint projects between the UAE and Saudi Arabia, particularly in the energy and infrastructure sectors. These relationships enhance the bank's position as a regional financial institution and enable it to capitalize on growth opportunities in the two largest Gulf economies. On the other hand, Saudi investors monitor First Abu Dhabi Bank's performance as part of their assessment of the broader Gulf banking sector, especially with the convergence of monetary policies and investment trends in the region.

First Abu Dhabi Bank has significantly invested in digital transformation in recent years, launching advanced banking applications that utilize artificial intelligence and chatbot technologies. The bank has also adopted the concept of 'open banking' in collaboration with global tech companies, allowing customers to manage their accounts and connect them with external financial platforms. These initiatives aim to enhance customer experience, accelerate transactions, and reduce operational costs. The bank is also investing in developing digital infrastructure to strengthen cybersecurity and analyze credit risks more efficiently. This digital approach reflects the bank's commitment to keeping pace with the latest global trends in financial services and helps it attract a larger segment of customers, especially from the younger generation and digital users.

First Abu Dhabi Bank focuses on social responsibility and environmental sustainability as part of its corporate strategy. During 2024 and 2025, the bank invested in financing renewable energy projects, sustainable agriculture, and the transition to green energy in the UAE and beyond. It also launched programs to support small and medium enterprises and initiatives to empower women and youth in the labor market. The bank adopts environmental, social, and governance (ESG) standards and works to integrate them into all its financing and investment operations. These efforts enhance the bank's reputation as a socially responsible institution and increase its attractiveness to investors interested in sustainable and responsible investing.

First Abu Dhabi Bank maintains strict risk management policies, focusing on the quality of the credit portfolio and allocating sufficient provisions for non-performing loans. Thanks to these policies, the bank has maintained a low non-performing loan rate and a high coverage ratio with provisions. The bank also enjoys strong credit ratings from global institutions such as Moody’s and Fitch, often at an A level. These ratings reflect the bank's strong financial position, its ability to attract international capital, and its efficiency in managing operational and credit risks. This creditworthiness enables the bank to secure international financing on competitive terms and enhances its credibility with investors and financial institutions worldwide.

Despite notable successes, First Abu Dhabi Bank faces several challenges in a dynamic and changing environment. Among the most significant challenges are fluctuations in global interest rates, intense competition from regional and global banks, and rapid transformations in financial technology. Additionally, international and local banking regulations impose increasing compliance requirements. Conversely, the bank has promising opportunities, such as expanding into emerging markets in Asia and Africa, enhancing partnerships in financing major projects, and continuing to invest in digital transformation. The bank's ability to adapt to these changes will determine the sustainability of its growth and success in the future.

The ownership of First Abu Dhabi Bank is characterized by the dominance of Emirati government institutions, with the Abu Dhabi Sovereign Wealth Fund (ADQ) and Mubadala Investment Fund holding significant stakes in the bank through various investment companies. The government stake exceeds 60%, providing the bank with substantial stability and strategic support in facing challenges. Additionally, the ownership structure includes investment institutions and global and local investment funds, as well as individual shareholders. This diversity in ownership grants the bank flexibility in making strategic decisions and enhances its financial stability and ability to finance future expansions.

In 2024 and 2025, First Abu Dhabi Bank announced strong financial results, with net profits rising and a continued generous dividend distribution policy. In February 2025, the fourth-quarter results for 2024 were published, showing significant profit growth, supported by increased interest margins and reduced loan provisions. The bank also participated in regional and global investment conferences, notably the Morgan Stanley Saudi Conference and HSBC Conference, enhancing its presence in the Gulf and international financial arenas. Additionally, the bank launched new digital initiatives and developed innovative financial solutions to keep pace with technological transformations. Furthermore, the bank continued to expand into emerging markets through strategic partnerships with banks in Asia and Africa and launched campaigns to finance renewable energy and sustainable agriculture projects, reflecting its commitment to sustainability and social responsibility.