The Bank reports net profit after tax(1) of 8.104 Dhs bn in 9M’25 and 3.090 Dhs bn in Q3’25
Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the third quarter and nine-month period 2025 (Q3’25 and 9M’25).
| Selected financial metrics for 9M’25 | ||
| 9.108bn Profit before tax (AED) | 8.104bn Net profit after tax (AED) | 14.7% Return on average equity (post tax) |
| 27.7% Cost to income ratio | +57 bn Net loan growth YoY (AED) | +76 bn Customer deposit growth YoY (AED) |
| 0.73% Cost of risk | 1.86% Non-performing loan ratio | 12.70% CET1 ratio |
Profit before tax increases for 17 consecutive quarter(2), driven by strong top-line growth momentum combined with significant 460 bps YoY improvement in cost to income ratio to 27.6% in Q3’25
Key highlights – 9M’25 vs. 9M’24
- Profit before tax of AED 9.108 bn increased 18%
- Net profit after tax(1) of AED 8.104 bn increased 18%
- Net interest income of AED 10.854 bn increased 12%
- Non-interest income of AED 5.761 bn increased 34%
- Operating income of AED 16.616 bn increased 19%
- Cost to income ratio of 27.7% improved by 420 basis points
- Operating profit before impairment charge of AED 12.016 bn increased 26%
Key highlights – Q3’25 vs. Q3’24
- Profit before tax of AED 3.166 bn increased 18%
- Net profit after tax(1) of AED 3.090 bn
- Net interest income of AED 3.806 bn increased 21%
- Non-interest income of AED 2.068 bn increased 32%
- Operating income of AED 5.875 bn increased 25%
- Cost to income ratio of 27.6% improved by 460 basis points
- Operating profit before impairment charge of AED 4.251 bn increased 33%
- The Group continues to assess the implications of the Domestic Minimum Top-up Tax (DMTT) across all jurisdictions of operation, including eligibility for the Initial Phase of International Activity Exclusion (IAE), which, if applicable, reduces the statutory tax rate from 15% to 9%. Based on its assessment as at 30 September 2025 and projections to year-end, the Group expects to meet the IAE eligibility criteria and has accordingly applied a statutory tax rate of 9% for the quarter. In Q3’25,
the Group has also reversed the excess tax provision recognised in the first half of 2025, which was based on the DMTT rate of 15%. Q3’25 year on year and quarter on quarter comparisons are therefore not on a like-for-like basis
ADCB’s strong franchise drives net loan growth of AED 57 bn (+17%) and deposits growth of AED 76 bn (+19%) YoY against backdrop of strong UAE economic fundamentals
- Total assets of AED 744 bn increased 17% YoY and 14% YTD
- Net loans of AED 401 bn were up 17% YoY (AED 57 bn) and 14% YTD (AED 51 bn)
- Total customer deposits of AED 482 bn increased 19% YoY (AED 76 bn) and 15% YTD (AED 61 bn)
- Current and savings account (CASA) deposits increased 27% YoY (AED 47 bn) and 16% YTD (AED 30 bn) to AED 216 bn at September-end, accounting for 45% of total customer deposits
- Capital adequacy and Common Equity Tier 1 (CET1) ratios were 16.00% and 12.70% respectively
- Liquidity coverage ratio (LCR) stood at 133.1%, while loan to deposit (LTD) ratio was 83.2%
- The NPL ratio improved further to a new record low of 1.86% from 3.04% at December-end. Provision coverage ratio increased significantly to 187.3%, up from 110.0% at December-end, and, when including collateral, it was 289%
Commentary on Q3/9M 2025 financial results
ADCB Group delivered strong progress in the third quarter of 2025, marking 17 consecutive quarters of profit-before-tax growth(1) and clear delivery against its five-year strategy. As a technology-driven organisation at the forefront of a new era in financial services, the Bank is executing transformation at pace, combining disciplined performance with structural changes that are reshaping how it operates, delivers service excellence and creates long-term value.
Nine-month profit before tax increased 18% year on year to reach AED 9.108 billion, with a return on average equity (RoAE) post tax of 14.7% – on track for full-year 2025 RoAE guidance of c.15%. Third quarter profit before tax increased 18% year on year to AED 3.166 billion. A defining feature of this performance is the Bank’s ability to drive growth and productivity, while investing for the future. The cost to income ratio improved by 420 basis points year on year to 27.7% in 9M’25, reflecting sustained gains from digital-driven automation, process optimisation and operational efficiencies.
ADCB continued to deliver well diversified top-line growth, combining disciplined credit expansion with a broad product and service offering to drive higher fee income. Notably, non-interest income surged 34% year on year in the first nine months, while net interest income increased 12%, reflecting strong broad-based momentum across the core businesses.
Operating within a dynamic and resilient economy, the Bank is benefitting from strong fundamentals in the UAE, where sustained investment in infrastructure, renewable energy and advanced industries is stimulating private-sector expansion and robust consumer confidence. Over the last 12 months, net loans have increased AED 57 billion (17%) to cross the AED 400 billion mark, while customer deposits rose AED 76 billion (19%) to AED 482 billion, including an inflow of AED 47 billion of current and savings account (CASA) deposits, reflecting the strength of the ADCB franchise.
The Bank’s loan growth continues to be characterised by a disciplined approach to risk management. Impairments recorded in Q3’25, primarily stem from a build-up of provisions on a small number of legacy corporate accounts. Consequently, five-year cost of risk guidance remains unchanged at below 60 basis points, while full-year guidance for 2025 has been updated to the 63-68 bps range. These levels reflect strong underlying credit quality and a well-diversified exposure profile.
Strategic capital raise in the context of strong organic growth
In this context of strong organic growth, ADCB has launched a rights issue to raise up to AED 6.1 billion following approval by shareholders on 13 October 2025. This represents a decisive step to deliver long-term shareholder value creation by enhancing capacity to achieve significant asset growth, whilst remaining ahead of evolving regulatory requirements. In recognition of the Bank’s rapid growth and stature among the country’s largest financial institutions, higher capital buffers have recently been introduced for ADCB as a Domestic Systemically Important Bank (D-SIB). The capital increase will uplift the Common Equity Tier 1 (CET1) ratio and Capital Adequacy Ratio (CAR) by c.120 bps from June 2025 levels, positioning ADCB well ahead of the new requirements.
Mubadala Investment Company PJSC, ADCB’s majority shareholder, has confirmed that it plans to exercise all of its rights to subscribe in full for its proportional entitlement of the new shares offered. (For further details on the rights issue, please visit adcb.com/rightsissue)
Launch of AI transformation programme
ADCB’s new strategy, adopted in January 2025, provides a roadmap to double net profit to AED 20 billion within five years. Alongside its third-quarter results, the Bank has announced an artificial intelligence (AI) transformation programme as a catalyst for delivery of this strategy, aiming to unlock AED 4 bn in financial value over the next few years through additional revenue generation, cost efficiencies and risk management. The programme is designed to deliver enhanced customer experience, while also strengthening compliance and risk capabilities, including fraud detection, cybersecurity and operational resilience. (For further details, please visit adcb.com/AI)
Core businesses focused on earnings quality
The Retail Banking Group is maintaining a disciplined focus on premium customer segments, while driving digital engagement and expanding fee-generating income streams, particularly in wealth solutions and foreign exchange. Digital acquisition continues to play a key role, accounting for 67% of the 80,000+ new customers in Q3’25 and spearheading the c.55,000 credit cards sourced during the quarter. Digital engagement is driving both productivity and quality in customer experience, with 92% of customers registered on ADCB’s digital platforms(1) and 97% of retail financial transactions conducted through self-service channels.
Building on this strong digital foundation, the Bank continues to introduce enhancements such as fully digital loan journeys and new virtual investment capabilities through ADCB Securities. Strong customer engagement has also driven an increase in retail CASA deposits of AED 18 billion (28%) over the last twelve months, while ADCB’s Islamic financing offerings continue to gain strong traction, accounting for 59% of new loan acquisition in Q3’25.
The Corporate and Investment Banking Group (CIBG) delivered another strong quarter underpinned by deepening client relationships. Lending momentum remained solid, driven by broad-based growth reflecting healthy demand from GREs, multinationals and SMEs and supported by the establishment of 1,800 new client relationships in Q3’25. CIBG also continued to expand its international footprint, with loans outside the UAE rising 35% year to date and now comprising 25% of gross loans, as ADCB accompanies major UAE and regional clients expanding internationally and multinational corporates deepening their presence across the GCC.
(1) ADCB UAE operations, including Al Hilal Bank
Corporate CASA deposits increased AED 21 billion (23%) over the last year, reflecting strong client engagement and a growing share of cash management and transaction banking activity.
The Bank reinforced its position as a leading investment banking franchise, continuing to rank among the top 10 arrangers in the CEEMEA G3 Bonds League table. The CIBG team executed 17 debt capital markets transactions in Q3’25 valued at USD 15.6 billion, including a dual-tranche bond offering for the Government of Abu Dhabi and a dual-tranche sukuk offering for Saudi Aramco. In equity capital markets, ADCB played key roles in significant transactions such as the public offering of Du shares by Mubadala and the IPO of Alec Holdings by Investment Corporation of Dubai, while also serving as lead manager and bookrunner for the ADCB rights issue.
ADCB’s Private Banking and Wealth Management business is benefitting from significant client inflows. With an expanding suite of investment and advisory solutions, assets under management have increased 47% over the last 12 months, reinforcing ADCB’s position as a leading wealth management platform.
ADCB Egypt delivered resilient growth over the last nine months, with net profit of EGP 3.856 billion(1) 31% higher year on year, representing a return on equity of 36%. This strong performance was supported by loan growth of 50% year on year, accompanied by increased digital adoption that enhanced efficiency and customer experience.
Meedaf gaining momentum through strategic partnerships
Meedaf, a wholly owned ADCB subsidiary licensed by ADGM, is gaining momentum since its launch in April 2025. Established to diversify the Bank’s
income streams and provide financial, automation and operational solutions to institutions across the GCC, Meedaf is expanding its platform through strategic partnerships. Following its collaboration with Brink’s to deliver advanced cash management services, Meedaf has formed a strategic partnership with InDebted, the global leader in AI-powered collections infrastructure, which includes an investment in InDebted’s UAE entity to support the expansion of its regional operations.
NAFIS award reflects leadership in Emiratisation
Across the Group, ADCB is contributing to national priorities that support a sustainable, future-ready economy. The Bank was honoured with the 2025 Nafis Diamond Award “Entities Category – Exceptional Efforts in Emiratisation” for its achievements in Emiratisation, with UAE nationals now representing 40% of the total employee base, 98% of branch managers and 40% of leadership positions. This has led to ADCB exceeding its Emiratisation targets across senior management and internal governance committees.
At the same time, ADCB is stepping up financing of the UAE’s low-carbon transition, with the recently published 2025 Green Bond Report recording a
19% year on year increase in the Eligible Green Loan Portfolio as at 30 June 2025. Proceeds have been directed towards a number of initiatives including renewable energy, sustainable real estate and water management projects.
Entering the final quarter of 2025, ADCB stands as a fast-moving, data-led institution driven by a clear strategic direction. Through disciplined execution, continued investment in digital and AI capabilities and an unwavering focus on customer experience, the Bank is well positioned to sustain profitable growth, contribute to the UAE’s dynamic economy and deliver long-term value for shareholders.
| Deepak Khullar Group Chief Financial Officer | Ala’a Eraiqat Group Chief Executive Officer |
