First Abu Dhabi Bank proposes a rights issue of up to AED15 billion and lifts its return target above 17 percent

First Abu Dhabi Bank's board has approved a proposed rights issue to raise up to AED15 billion ($4.08 billion), in what would be one of the largest in the region in recent years. The UAE's largest bank would issue 1,109,467,456 new shares at AED13.52 each, a 30 percent discount to its closing price on the Abu Dhabi Securities Exchange on 10 November 2026.

Mubadala Investment Company, FAB's largest shareholder with a 37.9 percent stake, intends to subscribe for its full pro-rata entitlement. The proposal goes to shareholders at a General Assembly on 7 December 2026 and still needs regulatory approval; completion is expected in the first quarter of 2027.

HIGHER RETURN TARGETS

Alongside the capital raise, FAB now targets a return on tangible equity above 17 percent through the cycle, up from more than 16 percent, and plans to pay more than AED50 billion in cumulative dividends over the plan period. Loan growth and revenue growth are both targeted at between 10 percent and 15 percent a year.

The framework also sets a cost of risk below 70 basis points and a Group Common Equity Tier 1 ratio, before dividends, above 14 percent, while keeping FAB's AA- credit strength. The proceeds are expected to support deeper client relationships, broader business growth and investment in technology and artificial intelligence.

"We will deploy capital with discipline and focus, pursuing opportunities that deepen our competitive position, expand the scale and reach of our franchise, and deliver superior, sustainable returns for our shareholders," said Hana Al Rostamani, the group chief executive. Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and chairman of FAB, said the rights issue would strengthen the bank's ability to support the UAE's economic ambitions and capture growth opportunities at home and abroad.

A BALANCE SHEET ALREADY GROWING

In the first nine months of 2026, FAB's loans and advances rose 10 percent to AED679 billion and customer deposits rose 5 percent to AED885 billion, while total assets reached AED1.47 trillion at the end of September, up 7 percent since the start of the year. Operating income rose 7 percent to AED29.71 billion and return on tangible equity stood at 18.6 percent.

Between 2020 and 2025, the bank said, total assets grew by more than 50 percent to AED1.4 trillion and net income doubled to AED21.1 billion, and it returned AED44 billion in cash dividends over the same years. The issue comes as conflict in the Middle East continues to rock the region: business in the UAE has largely resumed after strikes against the country earlier in the war, although recovery in hospitality and tourism could take longer.

THE TGB VIEW

First Abu Dhabi Bank tops the TGB Bank Rankings table of the largest banks in the Middle East and North Africa, leading the region with US$382bn and ranked 95th in the world, with QNB Group second. Its ROE in that table is 14.4 percent; FAB's own return on tangible equity, a different measure, was 18.6 percent in the first nine months, so the new goal of above 17 percent asks it to keep returns near current levels on a larger capital base. The first date to watch is the General Assembly on 7 December 2026, with the entitlement ratio and subscription timetable to be announced later.

Related: First Abu Dhabi Bank Issued AED1 Billion Digital Green Bond