12:56 PM EDT, 10/30/2026 (MT Newswires) -- BofA Global Research is optimistic on First Abu Dhabi Bank's (ADX:FAB) growth after the United Arab Emirates-based lender delivered a better-than-expected attributable net profit in the third quarter. The bank's net profit attributable to shareholders rose 6.5% on a yearly basis to 5.74 billion Emirati dirhams, beating consensus and BofA's estimates by 3% and 1.2%, respectively, according to a Friday note. "FAB's 3Q26 results reinforce our view of its profitable growth potential. Although NII missed expectations, stronger non-interest income, continued balance-sheet growth and the prospect of NIM recovery in 4Q26E and 2027E support the outlook," analysts said. "We continue to see durable high-teens ROTE potential in 2026-28E, with 18.2% average ROTE. We see earnings growth support from: 1) NIM stability (1.9%avg in 2026-28E), 2) A rising non-interest income contribution, 3) Continued cost efficiency with cost to income down 2ppt in 2026-28E, and strong volume growth (13-14% in 2026-27E)." Taking this into account, the research firm lifted its EPS forecasts for 2026 through 2028 by between 0.2% and 0.8%, while net interest income projections were nudged 0.3% to 0.4% lower. Meanwhile, the price objective was reduced by 1% to 22.9 dirhams, mainly due to a higher cost of equity following a rise in the risk-free rate. The stock's buy rating was maintained.

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