Today's Edition
ABU DHABI (ALETIHAD)
Abu Dhabi Commercial Bank (ADCB) reported a record profit after tax of Dh11.445 billion for the full year 2025, marking a 22% year-on-year increase, supported by strong income growth, improved efficiency and accelerated balance sheet expansion, according to its fourth-quarter and full-year earnings statement released on Thursday.
Profit before tax rose 21% year on year to Dh12.843 billion in FY25, extending the bank’s streak to 18 consecutive quarters of growth in profit before tax. In the fourth quarter alone, profit before tax climbed 30% year on year to Dh3.736 billion, while net profit after tax rose 30% to Dh3.342 billion, reflecting continued momentum into year-end.
ADCB delivered return on average equity (ROAE) of 15.3% for FY25, up from 13.5% a year earlier, underlining improved profitability and efficient capital utilisation. Earnings per share stood at Dh1.45, while the bank proposed a cash dividend of Dh0.63 per share, equivalent to a total payout of Dh4.985 billion, subject to shareholder and regulatory approvals.
Operating income increased 14% year on year to Dh22.183 billion, driven by double-digit growth in both net interest income and non-interest income. Net interest and Islamic financing income rose 11% to Dh14.688 billion, while non-interest income grew 20% to Dh7.495 billion, accounting for 34% of total operating income. The bank’s cost-to-income ratio improved to a record low of 28.2%, from 31.0% in 2024, reflecting sustained cost discipline and efficiency gains from digital and AI-led initiatives.
On the balance sheet, total assets expanded 19% year on year to Dh774 billion at end-December 2025. Net loans increased 16% to Dh406 billion, supported by healthy demand across retail and corporate portfolios, while customer deposits rose 19% to Dh500 billion, with current and savings accounts accounting for 46% of total deposits, providing a stable funding base.
ADCB’s capital and liquidity positions strengthened further during the year. The common equity tier-1 (CET1) ratio improved to 13.79%, up from 12.56% in 2024, bolstered by retained earnings and the successful completion of a Dh6.1 billion rights issue. The bank maintained robust liquidity, with a liquidity coverage ratio of 131.3% and a loan-to-deposit ratio of 81.2% at year-end.
Asset quality metrics also improved, with the non-performing loan (NPL) ratio declining to 1.83% from 3.04% a year earlier, while provision coverage increased to 146.4%, underscoring conservative risk management and strong recovery efforts.
Commenting on the results, Chairman Khaldoon Khalifa Al Mubarak said the bank’s 2025 performance underscored its pivotal role in supporting the UAE’s economic growth and reflected its continued commitment to disciplined, sustainable expansion aligned with national priorities. He added that ADCB remains focused on long-term value creation through targeted investments that strengthen resilience, productivity and competitiveness.
Group Chief Executive Officer Ala’a Eraiqat said ADCB’s record performance in 2025 was the outcome of a clear strategy and disciplined execution over the past five years. He noted that the bank achieved 18 consecutive quarters of growth in profit before tax, supported by broad-based income growth and efficiency gains, while continuing to expand its franchise through close customer engagement, strong loan and deposit growth and ongoing digital transformation. He added that ADCB enters 2026 with a fortified balance sheet, total assets exceeding Dh770 billion and capital ratios above regulatory requirements, positioning it well to sustain strong performance and deliver long-term value to shareholders, customers and communities.
