First Abu Dhabi Bank: profit up 6.5% as net interest income growth accelerates to 7.9%

First Abu Dhabi Bank reported results for the third quarter of 2026. Net profit came in at AED 5,735 mn, up 6.5% year on year, while net interest income reached AED 9,162 mn and its annual growth accelerated to 7.9% from 5.4% in the second quarter. With a trailing-twelve-month P/E of 9.4 and a return on equity of 15.7%, the share looks attractive: the portal's model puts its upside to fair value at +11%.

Key takeaways

— Net profit rose 6.5% to AED 5,735 mn, the strongest quarter in the last four

— Net interest income growth accelerated to 7.9% from 5.4% in the second quarter

— A 15.7% return on equity at a P/E of 9.4 leaves 11% upside to fair value

— Net interest income has held above AED 9 bn for two consecutive quarters

— Capital expenditure of AED 102 mn does not divert profit from capital

Attractiveness

Key figures, AED bn

Net profit rose 6.5% to AED 5,735 mn, the strongest quarter in the last four

In the third quarter of 2026, First Abu Dhabi Bank's net profit reached AED 5,735 mn, up 6.5% from the same quarter a year earlier. This is the highest quarterly result in the last four quarters: profit was AED 5,715 mn in the second quarter, AED 5,011 mn in the first, and AED 5,091 mn in the fourth quarter of 2025.

Profit has grown year on year for four consecutive quarters, and the current level exceeds the third-quarter 2025 result by AED 348 mn. The resilience of the result is supported by net interest income, which has stayed above AED 9 bn for two quarters in a row.

Net interest income growth accelerated to 7.9% from 5.4% in the second quarter

Net interest income in the third quarter of 2026 reached AED 9,162 mn, and its annual growth accelerated to 7.9% from 5.4% in the second quarter. A quarter earlier the figure was AED 9,218 mn, a decline of AED 56 mn, or 0.6%, quarter on quarter.

Accelerating annual growth against a slight quarterly decline means the year-earlier base was lower. In the third quarter of 2025, net interest income was AED 8,492 mn, and the current level exceeds it by AED 670 mn. Net interest income remains the bank's main revenue source and the foundation of profit.

A 15.7% return on equity at a P/E of 9.4 leaves 11% upside to fair value

First Abu Dhabi Bank's return on equity stands at 15.7%, and its trailing-twelve-month P/E is 9.4. Profit over the last twelve months was AED 21,552 mn, and market capitalisation is AED 202,392 mn.

On the portal's model, which compares return on equity with the price-to-book ratio, the share's upside to fair value is estimated at +11%. This is our own estimate, not a market consensus or a target price. A combination of double-digit profitability and a single-digit P/E leaves room if profit holds at the current level.

Net interest income has held above AED 9 bn for two consecutive quarters

In the second and third quarters of 2026, net interest income exceeded AED 9 bn – AED 9,218 mn and AED 9,162 mn respectively. For comparison, the figure was AED 8,235 mn in the first quarter and AED 8,075 mn in the fourth quarter of 2025.

Holding income above AED 9 bn for two consecutive quarters suggests the growth was not one-off. Annual growth accelerated to 7.9% in the third quarter, confirming that the net interest income base is expanding. This metric determines the bank's ability to generate profit under its current balance-sheet structure.

Capital expenditure of AED 102 mn does not divert profit from capital

Capital expenditure in the third quarter of 2026 was AED 102 mn, the lowest level in recent quarters. It was AED 190 mn in the second quarter, AED 649 mn in the fourth quarter of 2025, and AED 111 mn in the third quarter of 2025.

For a bank, capital expenditure is not a primary expense line, and its decline to AED 102 mn frees up funds for capital. Against net profit of AED 5,735 mn, the outlay is less than 2% of the quarterly result. It does not change the profit picture but confirms that investment is not eroding the 15.7% return on equity.

Valuation on the latest reported figures

Bottom line

The report's strong point was net profit of AED 5,735 mn – the best quarter in the last four – and the acceleration of net interest income growth to 7.9%. A 15.7% return on equity at a P/E of 9.4, with 11% upside to fair value on the portal's model, supports the share's attractiveness. The key question for a holder is whether net interest income holds above AED 9 bn, since profit depends on it. Verdict: attractive.