Abu Dhabi Commercial Bank (ADCB) investor relations material

Executive summary

• Profit before tax rose 30% year-on-year to AED 3.781 billion, marking 19 consecutive quarters of profit growth, driven by diversified revenue streams, disciplined strategy execution, and robust UAE economic activity.

• Net profit after tax reached AED 3.361 billion, with return on average equity at 16.3%.

• Operating income increased to AED 5.934 billion, supported by higher net interest and non-interest income.

• Total assets surpassed AED 800 billion, with net loans at AED 426 billion and deposits at AED 523 billion, both up 18% YoY and 5% QoQ.

• CASA deposits rose 24% YoY, supporting a favorable funding mix.

Financial highlights

• Operating profit before impairment increased 24% YoY to AED 4.42 billion.

• Net interest income grew 10% YoY to AED 3.74 billion, with NIM at 2.32% despite lower rates.

• Non-interest income surged 36% YoY and 27% QoQ, now 37% of total operating income.

• Cost-to-income ratio improved by 360 bps YoY to a record low of 25.6%.

• Net profit up 37% YoY to AED 3.361 billion; basic EPS AED 0.40 vs AED 0.30 in Q1'25.

Outlook and guidance

• Full-year 2026 and medium-term guidance reiterated, targeting CET1 ratio >12%, cost of risk <60 bps, and ROE >15%.

• Five-year strategy aims to double net profit to AED 20 billion and pay out AED 25 billion in dividends.

• Risk-adjusted net interest margin expected to hold steady for the year; no further rate cuts anticipated.

• Management applied forward-looking adjustments to expected credit loss models due to ongoing geopolitical risks.