ADCB Posts Record Profit As Growth Accelerates Across Lending, Deposits And Digital Transformation

(MENAFN- Khaleej Times) Abu Dhabi Commercial Bank (ADCB) delivered a record financial performance in 2025, reporting its strongest-ever profit as loan growth, rising fee income and improved efficiency helped the lender extend an 18‐quarter run of earnings expansion.

The UAE's third-largest bank by assets said profit before tax climbed 21 per cent year on year to Dh12.843 billion in 2025, while net profit after tax rose 22 per cent to Dh11.445 billion. The results capped a strong finish to the year, with fourth-quarter net profit up 30 per cent year on year at Dh3.342 billion.

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Total assets expanded 19 per cent to Dh774 billion, supported by double-digit growth in both loans and deposits. Net loans grew 16 per cent to Dh406 billion, while customer deposits rose 19 per cent to Dh500 billion, reflecting what the bank described as“healthy credit demand across retail and corporate portfolios”.

Chairman Khaldoon Khalifa Al Mubarak said the results underscored ADCB's role in supporting the UAE's economic agenda as the bank marked its 40th anniversary.“ADCB's 2025 results underscore the Bank's pivotal role in supporting the UAE's economic growth and reflect our continued commitment to disciplined, sustainable expansion,” he said.“As we mark the Bank's 40th anniversary, ADCB remains firmly aligned with the UAE's national vision – financing priority sectors, investing in innovation, and contributing to inclusive and long-term prosperity.”

Profitability improved further during the year, with return on average equity rising to 15.3 per cent from 13.5 per cent in 2024. The bank also delivered a sharp improvement in efficiency, cutting its cost-to-income ratio to a record low of 28.2 per cent, down from 31 per cent a year earlier.

Operating income increased 14 per cent to Dh22.183 billion, driven by an 11 per cent rise in net interest income and a 20 per cent increase in non-interest income, which now accounts for 34 per cent of total operating income. Fee and commission income benefited from higher client activity, while trading income rose on the back of stronger foreign exchange and derivatives gains.

Group chief executive Ala'a Eraiqat attributed the performance to disciplined execution of ADCB's five‐year strategy and accelerating digital transformation.“ADCB's record performance in 2025 is the result of a clear vision and disciplined execution of our five‐year strategy,” he said.“The Bank achieved 18 consecutive quarters of growth in profit before tax, reaching Dh12.843 billion for FY'25, up 21 per cent year on year, driven by strong, broad‐based income growth.”

Eraiqat said efficiency gains were increasingly underpinned by technology and artificial intelligence.“Our cost to income ratio fell to a record low of 28.2 per cent, supported by sustained efficiency gains from our digital and AI‐powered transformation,” he said.

The bank continued to expand its balance sheet while maintaining strong funding metrics. Current and savings account (CASA) deposits rose by Dh46 billion during the year, accounting for 46 per cent of total deposits and helping to support margins amid a lower interest rate environment.

Asset quality also improved significantly. The non-performing loan ratio declined to 1.83 per cent from 3.04 per cent in 2024, while provision coverage increased to 146.4 per cent, reflecting what the bank described as“conservative risk management and strong recovery efforts”.

Capital strength was reinforced during the year through a Dh6.1 billion rights issue completed in December, the largest of its kind on the Abu Dhabi Securities Exchange. The move lifted the bank's common equity tier 1 ratio to 13.79 per cent, up from 12.56 per cent a year earlier.

Looking ahead, ADCB's board recommended a cash dividend of Dh0.63 per share for 2025, equivalent to a total payout of Dh4.985 billion, or 44 per cent of net profit, subject to regulatory and shareholder approval.

“With a technology‐driven model and a clear five‐year roadmap, the Bank is well positioned to sustain strong performance and create long‐term value for our shareholders, customers and communities,” Eraiqat said.

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