First Abu Dhabi Bank (FAB.AD): Data Update: Minor estimate revisions

First-page research excerpt

Equity Research

29 July 2026 | 7:30PM GST

First Abu Dhabi Bank (FAB.AD): Data Update: Minor estimate revisions

Estimate changes

We update our estimates post FAB’s 2Q26 results. Our 2026-28 EPS estimates

increase by c.2% on average, mainly driven by higher NII and fees, along with lower

credit costs, partially offset by other NIR. On the back of our estimate changes, our

new 12-month price target is AED22.0 (from AED21.0).

Valuation and key risks

We are Buy rated on FAB with a 12-month price target of AED22.0. We value the

bank using a ROTE/COE methodology on 2027E ROTE to arrive at our price target.

Key downside risks to our view and price target include: (1) lower-than-expected

NIMs, (2) regulatory changes impacting revenue and capital, (3)

worse-than-expected asset quality, and (4) value-dilutive capital deployment.

FAB.AD

12m Price Target: AED22.00

Price: AED18.90

+971(4)214-9958 |

Goldman Sachs International

Ashwath P T, CFA

Goldman Sachs International

Gokul Vinayak L

Goldman Sachs India SPL

Upside: 16.4%

Buy

GS Forecast

Market cap:

AED208.8bn / $56.9bn

3m ADTV: NA

United Arab Emirates

CEEMEA Financials

Tang. equity/tang. assets (%): 8.1

M&A Rank: 3

Net inc. (AED mn)

12/25

20,431.0

12/26E

20,834.9

12/27E

23,005.3

12/28E

25,201.4

Tang. BVPS (AED)

10.19

11.25

12.43

13.73

EPS (AED) New

1.85

1.89

2.08

2.28

EPS (AED) Old

1.85

1.87

2.04

2.23

DPS (AED)

0.80

0.82

0.90

0.98

GS ROTE (%)

19.2

17.6

17.4

P/E (X)

8.5

10.0

9.1

8.3

Dividend yield (%)

5.1

4.3

4.8

5.2

CET1 ratio (%)

13.3

13.4

13.8

14.4

3/26

6/26

9/26E

12/26E

0.43

0.50

0.46

0.49

EPS (AED)

Kazim Andac

Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 28 Jul 2026 close.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors

should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.

Investors should consider this report as only a single factor in making their investment decision. For Reg AC