Abu Dhabi Commercial Bank PJSC (ADCB) today announced its financial results for the third quarter and nine-month period of 2025 (Q3’25 and 9M’25).
Profit before tax has risen for 17 consecutive quarters, propelled by robust top-line growth momentum and a significant 460 basis points year-on-year improvement in the cost-to-income ratio, now at 27.6 percent in Q3’25.
According to a statement from ADCB, the group has made remarkable strides in the third quarter of 2025, marking 17 consecutive quarters of growth in profit before tax and demonstrating clear progress against its five-year strategy.
As a technology-driven organization at the forefront of a new era in financial services, the Bank is executing transformation swiftly, merging disciplined performance with structural changes that are redefining its operations, enhancing service excellence, and creating long-term value.
In the nine-month period, profit before tax grew by 18 percent year-on-year, reaching AED9.108 billion ($2.48 billion), with a return on average equity (RoAE) post-tax of 14.7 percent—on track for the full-year 2025 RoAE guidance of approximately 15 percent. In the third quarter alone, profit before tax climbed 18 percent year-on-year to AED3.166 billion. A defining aspect of this performance is the Bank’s ability to foster growth and productivity while simultaneously investing for the future. The cost-to-income ratio improved by 420 basis points year-on-year to 27.7 percent in 9M’25, reflecting sustained gains from digital-driven automation, process optimization, and operational efficiencies.
Surge in non-interest income
ADCB has consistently delivered well-diversified top-line growth, balancing disciplined credit expansion with a wide array of products and services to boost fee income. Notably, non-interest income surged 34 percent year-on-year in the first nine months, while net interest income rose by 12 percent, showcasing strong, broad-based momentum across core businesses.
Operating within a dynamic and resilient economy, the Bank is benefiting from solid fundamentals in the UAE, where ongoing investment in infrastructure, renewable energy, and advanced industries is driving private-sector expansion and robust consumer confidence. Over the past 12 months, net loans increased by AED57 billion (17 percent), surpassing the AED400 billion mark, while customer deposits rose by AED76 billion (19 percent) to AED482 billion, which includes an inflow of AED47 billion in current and savings account (CASA) deposits, highlighting the strength of the ADCB franchise.
The Bank’s loan growth continues to be characterized by a disciplined approach to risk management.
Strong loan and deposit growth
ADCB’s strong franchise propels net loan growth of AED57 billion (+17 percent) and deposit growth of AED76 billion (+19 percent) year-on-year against the backdrop of strong UAE economic fundamentals. Total assets of AED744 billion increased by 17 percent year-on-year and 14 percent year-to-date.
Net loans of AED401 billion were up 17 percent year-on-year (AED57 billion) and 14 percent year-to-date (AED51 billion). Total customer deposits of AED482 billion rose by 19 percent year-on-year (AED76 billion) and 15 percent year-to-date (AED61 billion). Current and savings account (CASA) deposits grew 27 percent year-on-year (AED47 billion) and 16 percent year-to-date (AED30 billion) to AED216 billion at the end of September, accounting for 45 percent of total customer deposits.
Capital adequacy and Common Equity Tier 1 (CET1) ratios stood at 16.00 percent and 12.70 percent, respectively. The liquidity coverage ratio (LCR) was 133.1 percent, while the loan-to-deposit (LTD) ratio was 83.2 percent. The non-performing loans (NPL) ratio improved further to a new record low of 1.86 percent from 3.04 percent at the end of December. The provision coverage ratio increased significantly to 187.3 percent, up from 110.0 percent at December-end, and when factoring in collateral, it reached 289 percent.
Rating upgrade
In March 2025, S&P Global Ratings upgraded Abu Dhabi Commercial Bank’s (ADCB) long-term issuer credit rating from A to A+, maintaining a stable outlook. This upgrade reflects the bank’s robust financial position and high asset quality, ranking ADCB among the top three highest-rated banks in the MENA region according to S&P.
The bank’s strong investment-grade ratings facilitate a favorable cost of capital as it embarks on a new strategy aimed at doubling net profit to AED 20 billion within five years. “Strong earnings generation and high capital retention are fundamental to ADCB’s capitalization, which we view as a key strength. We believe the bank’s asset quality will continue to improve due to the enhancements in its risk management culture and control framework over the past four years,” noted S&P.
ADCB has reduced its exposure to high-risk sectors, particularly real estate and construction, to 14 percent of total exposures by the end of 2024, down from 29 percent at the end of 2020. In contrast, lending to more creditworthy government and public sector entities has risen to 27 percent of total lending, up from 21 percent.
As a key player in the UAE’s dynamic growth, ADCB has significantly enhanced its scale and profitability since launching its previous strategy in 2020. The bank achieved a compound annual growth rate (CAGR) of 28 percent in profit before tax, exceeding AED 10 billion in 2024, a year ahead of schedule. “We see these advancements, along with a more cautious risk appetite, as sustainable, positioning the bank to better navigate economic cycles,” added S&P.
Source: Economy Middle East
