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First Abu Dhabi Bank
What is the history of First Abu Dhabi Bank?
First Abu Dhabi Bank (FAB) emerged from a significant merger in April 2017, combining National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB). This event created the largest bank in the UAE and a major player in the MENA region.
FAB's origins lie in its predecessor banks. NBAD was founded in 1968, aiming to be the largest and safest bank in the UAE and GCC. FGB, established in 1979, focused on various banking sectors, including Islamic banking.
The merger aimed to boost growth and enhance customer service by combining NBAD's wholesale banking and international reach with FGB's strong consumer banking. This strategic move positioned FAB for continued success. For a deeper dive into its market positioning, explore the First Abu Dhabi Bank BCG Matrix.
As of June 2025, FAB reported total assets exceeding AED 1.3 trillion (approximately USD 356.6 billion). The bank is recognized for its global presence and strong credit ratings, underscoring its stability and market leadership.
What is the First Abu Dhabi Bank Founding Story?
The formation of First Abu Dhabi Bank (FAB) was not a singular founding event but rather the culmination of a significant merger between two established financial institutions: National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB). This strategic union officially took place on April 1, 2017, creating a powerhouse in the UAE's banking sector.
The Genesis of First Abu Dhabi Bank
The history of First Abu Dhabi Bank is rooted in the legacy of its predecessor banks, NBAD and FGB. The merger was a carefully orchestrated process, beginning with board approvals in mid-2016 and shareholder consent by year-end.
- National Bank of Abu Dhabi (NBAD) was established on February 13, 1968, by decree of the Late Sheikh Zayed Bin Sultan Al Nahyan, aiming to be the leading bank in the UAE and GCC.
- First Gulf Bank (FGB) commenced operations in 1979, headquartered in Abu Dhabi, and focused on a broad spectrum of financial services.
- The merger was finalized on April 1, 2017, through a share swap that resulted in FGB shareholders owning 52% of the new entity.
- The combined bank boasts total assets exceeding AED 670 billion (USD 180 billion), leveraging the strengths of both NBAD's wholesale banking and FGB's consumer banking prowess.
- This strategic integration aimed to enhance customer service and market leadership, reflecting a key milestone in the Mission, Vision & Core Values of First Abu Dhabi Bank.
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What Drove the Early Growth of First Abu Dhabi Bank?
Following its formation in April 2017 from the merger of National Bank of Abu Dhabi and First Gulf Bank, First Abu Dhabi Bank (FAB) embarked on a strategic path of integration and expansion. This pivotal moment established FAB as the largest bank in the UAE and a significant player in the MENA region.
Global Footprint Expansion
Leveraging the extensive international network of its predecessors, FAB continued to grow its global presence. By December 2024, the bank operated in 20 markets worldwide. This strategic expansion saw international franchise loans increase by 28%, contributing 17% to the bank's revenue by June 2025, with key markets including the UK, France, Switzerland, and Saudi Arabia.
Pioneering Payment Systems
FAB made a significant stride in international finance by becoming the first MENA bank to join CIPS (Cross-Border Interbank Payment System) as a direct participant. This move enhanced its capacity to facilitate financial flows between Asia and the East-West corridor.
Product Evolution and Client Growth
The bank focused on enhancing its diverse product offerings across Investment Banking, Corporate and Commercial Banking, Consumer Banking, Private Banking, and Global Markets. In 2024, retail banking experienced a 20% rise in new customers, with lending and deposits growing by 15% and 17% respectively. Private banking assets under management saw a substantial surge of 75% year-on-year in 2024.
Financial Performance and Efficiency Gains
FAB's early growth phase demonstrated strong financial performance, with a net profit of AED 17.1 billion in 2024, a 4% increase year-on-year. Total assets expanded by 4% to AED 1.21 trillion by December 2024. The first quarter of 2025 marked record results, with Group net profit reaching AED 5.13 billion, up 23% year-on-year, and total assets surpassing AED 1.3 trillion. The cost-to-income ratio improved to 22.3% in Q1 2025, reflecting enhanced operational efficiency. Understanding the Target Market of First Abu Dhabi Bank is crucial to appreciating these growth metrics.
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What are the key Milestones in First Abu Dhabi Bank history?
First Abu Dhabi Bank (FAB) has navigated a path marked by significant achievements, strategic innovations, and the inherent challenges of the global financial landscape. Its formation in April 2017 through the merger of National Bank of Abu Dhabi and First Gulf Bank established it as the largest bank in the UAE and a major player in the MENA region. This foundational event set the stage for its subsequent growth and market influence, contributing to the Brief History of First Abu Dhabi Bank.
| Year | Milestone |
|---|---|
| 2017 | Formation of First Abu Dhabi Bank (FAB) through the merger of National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB). |
| 2024 | Achieved a net profit of AED 17.1 billion, with revenue increasing by 15% to AED 31.6 billion. |
| Q1 2025 | Reported a record net profit of AED 5.13 billion, a 23% year-on-year increase, with total assets exceeding AED 1.3 trillion. |
FAB has consistently prioritized digital advancement, aiming to provide 'best in class' technology for its clientele. The bank has also made substantial commitments to sustainability, pledging significant financing for green initiatives by 2030.
Digital Transformation
In 2024, FAB launched FABeAccess for corporate banking and advanced its FAB Business digitalization. The bank is also accelerating its AI adoption, becoming the first in the region to use an AI Agent Board Observer in Q1 2025.
Sustainability Leadership
FAB has pledged to lend, invest, and facilitate AED 500 billion in sustainable and transition financing by 2030, achieving 53% of this goal by the end of 2024. It was also elected Chair of the Steering Group of the Net-Zero Banking Alliance (NZBA) in 2024.
Financial Performance
The bank reported a net profit of AED 17.1 billion in 2024 and a record net profit of AED 5.13 billion in Q1 2025. Its Return on Tangible Equity (RoTE) reached 20.4% in Q1 2025, exceeding its medium-term target.
The banking sector, including FAB, contends with global economic and political uncertainties. However, FAB's strategic diversification of revenue and ongoing investment in technology and innovation are key to navigating these complexities.
Navigating Uncertainty
Global economic and political uncertainties present ongoing challenges for financial institutions. FAB's robust and diversified balance sheet provides a strong foundation for continued growth amidst these external factors.
Strategic Resilience
The bank's ability to overcome challenges is bolstered by its strategic diversification of revenue streams. Continuous investment in technology and innovation further strengthens its market position.
Governance and Growth
FAB's solid corporate governance structure is crucial for driving sustained growth. This framework ensures accountability and supports the bank's long-term strategic objectives.
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What is the Timeline of Key Events for First Abu Dhabi Bank?
The First Abu Dhabi Bank history is marked by significant growth and strategic decisions, notably its formation through a major merger. Understanding the First Abu Dhabi Bank history reveals a journey from its foundational entities to its current status as a leading financial institution.
| Year | Key Event |
|---|---|
| 1968 | The National Bank of Abu Dhabi (NBAD) was established by decree. |
| 1975 | NBAD initiated its international expansion by opening its first overseas branch in Egypt. |
| 1979 | First Gulf Bank (FGB) was founded in Abu Dhabi. |
| July 3, 2016 | The boards of NBAD and FGB unanimously recommended a merger. |
| December 7, 2016 | Shareholders from both banks gave their approval for the merger. |
| April 1, 2017 | The legal merger was finalized, creating First Abu Dhabi Bank (FAB). |
| April 2, 2017 | FAB shares commenced trading on the Abu Dhabi Securities Exchange. |
| 2019 | FAB expanded its operations internationally by entering Saudi Arabia. |
| 2021 | FAB became a signatory to the Net-Zero Banking Alliance (NZBA). |
| 2023 | FAB committed to facilitating over AED 500 billion (USD 136 billion) in sustainable and transition financing by 2030. |
| 2024 | FAB reported a net profit of AED 17.1 billion, with total assets reaching AED 1.21 trillion. |
| October 2024 | FAB Asset Management secured approximately $200 million in assets under management. |
| March 2025 | Shareholders approved a record cash dividend of $2.3 billion for the 2024 financial year. |
| Q1 2025 | FAB achieved a record net profit of AED 5.13 billion, a 23% year-on-year increase, and its total assets surpassed AED 1.3 trillion. FAB also adopted an AI Agent Board Observer. |
| H1 2025 | FAB announced a record net profit of AED 10.63 billion, up 26% year-on-year, with total assets reaching AED 1.34 trillion as of June 2025. |
Economic Growth and FAB's Role
The UAE's economy is projected to grow robustly in 2025, with a GDP growth rate expected to reach 5.6%. This expansion is supported by strategic investments and a thriving non-oil sector.
Digital Transformation and AI Adoption
FAB is enhancing its operations through advanced AI technologies and a modern data platform. This focus aims to boost productivity and improve customer experiences.
International Expansion Strategy
The bank is strategically expanding its global footprint, with a particular emphasis on key growth markets. This expansion aligns with its objective to be a leading international financial institution.
Sustainable Finance Commitment
FAB is a leader in sustainable finance, having achieved 53% of its AED 500 billion target by the end of 2024. The bank is committed to reaching its full target by 2030, demonstrating its dedication to environmental, social, and governance principles. This commitment is a key aspect of the Marketing Strategy of First Abu Dhabi Bank.
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