First Abu Dhabi Bank: 2Q26 results: Strong revenue and lower provisioning drive beat

Research evidence excerpt

First Abu Dhabi Bank: 2Q26 results: Strong revenue and lower provisioning drive beat

Update

July 23, 2026 06:30 AM GMT

Morgan Stanley & Co. International plc (DIFC Branch)+MFirst Abu Dhabi Bank | Europe Shabbir Malik

Equity Analyst

2Q26 results: Strong revenue Shabbir.Malik@morganstanley.com +971 4 709-7057

First Abu Dhabi Bank (FAB.AD, FAB DH)

EEMEA - Banks & Fintech | United Arab Emiratesand lower provisioning drive

Stock Rating Equal-weight

Industry View In-Line

Price target AED 17.60beat Shr price, close (Jul 22, 2026) AED 17.88

52-Week Range AED 20.74- 15.32

Mkt cap, curr (mn) AED 197,531

AlphaSignals Earnings Reaction Net debt (12/26e) (mn)* AED 14,428

EV, curr (mn)* AED 197,718

Unchanged Modest upside Modest revision higher

Impact to our thesis Financial results versus consensus Direction of next 12-month * = GAAP or approximated based on GAAP

consensus EPS

Source: Company data, Morgan Stanley Research

2Q26 profit beats estimates: FAB's 2Q26 profit was AED5.72bn (EPS: AED0.50),

+14% QoQ and +4% YoY. Earnings were 13% ahead of our estimate, and 11% ahead

of consensus estimates on stronger revenue and lower provisioning. The bank's

ROTE was 20.3% in 2Q26, up from 17.8% in the preceding quarter. The group's 1H26

profit came in at AED10.7bn, stable YoY, as stronger NII was balanced by higher

provisioning charges. Results call to take place at 3pm UAE time.

Wider NIM and strong other income drives revenue: Revenue rose 9% QoQ with

NII up 5% and Non-II up 16% QoQ. The bank's NIM surprised positively as it widened

c27bps QoQ to 1.99%. Mgmt. comments suggest that the improvement was driven

by a combination of repricing efforts, liquidity optimisation and reversal of

suspended interest. While fees were down 9% QoQ, other income rose c40%

sequentially.