ABU DHABI (ALETIHAD)
Abu Dhabi Commercial Bank (ADCB) reported a net profit after tax of Dh8.1 billion for the first nine months of 2025, an 18% increase from the same period a year earlier, driven by broad-based income growth, improved efficiency, and disciplined risk management.
Profit before tax for the nine-month period rose 18% year on year to Dh9.1 billion, marking the 17th consecutive quarter of profit-before-tax growth.
The bank’s return on average equity (post-tax) stood at 14.7%, keeping ADCB on track to achieve its full-year 2025 guidance of around 15%. Total operating income for the first nine months climbed 19% year on year to Dh16.6 billion, supported by higher interest and non-interest income.
Net interest income rose 12% to Dh10.9 billion, while non-interest income surged 34% to Dh5.8 billion, accounting for over one-third of total operating income.
ADCB’s cost-to-income ratio improved significantly to 27.7%, down 420 basis points year on year, reflecting continued investment in digitalisation, automation, and process optimisation.
Operating profit before impairment charges grew 26% to Dh12 billion, even as the bank increased provisions on a small number of legacy corporate accounts. Total impairment charges stood at Dh2.9 billion in the first nine months, compared with Dh1.9 billion a year earlier, while the cost of risk remained contained at 0.73%, underscoring the bank’s prudent credit management.
The balance sheet continued to strengthen, with total assets reaching Dh744 billion at the end of September 2025, up 17% year on year and 14% year to date.
Net loans and advances grew 17% to Dh401 billion, while customer deposits increased 19% to Dh482 billion. Current and savings account (CASA) deposits rose 27% to Dh216 billion, representing 45% of total deposits, underscoring ADCB’s strong funding base.
The non-performing loan (NPL) ratio improved to a record low of 1.86%, down from 3.04% at the end of 2024, with a provision coverage ratio of 187% and 289% including collateral.
Capital and liquidity positions remained robust, with a Common Equity Tier 1 (CET1) ratio of 12.7%, a capital adequacy ratio of 16.0%, and a liquidity coverage ratio of 133.1%. The loan-to-deposit ratio was 83.2%, reflecting a comfortable funding position. The bank also noted that it has launched a rights issue of up to Dh6.1 billion, approved earlier this month, to support future growth and enhance capital buffers.
ADCB’s performance was underpinned by steady expansion across both retail and corporate businesses.
The Retail Banking Group continued to focus on premium customer segments, with 67% of 80,000 new customers onboarded digitally in Q3. The Corporate and Investment Banking Group deepened relationships with government-related entities, multinationals, and SMEs, while also expanding its international lending footprint, which now comprises 25% of gross loans.
For the third quarter of 2025, ADCB reported a net profit after tax of Dh3.09 billion, up 29% year on year, and a profit before tax of Dh3.17 billion, up 18%. Operating income for the quarter stood at Dh5.9 billion, an increase of 25% compared with the same period last year, while the cost-to-income ratio improved to 27.6%.
ADCB said it remains committed to its five-year strategy to double net profit to Dh20 billion through sustained growth, efficiency gains, and technological transformation.
Its newly announced AI transformation programme aims to unlock Dh4 billion in financial value by enhancing revenue, cost management, and risk resilience, reinforcing ADCB’s position as one of the UAE’s leading data-driven financial institutions.