Abu Dhabi Commercial Bank (ADCB) Q1 2025 earnings summary

Executive summary

• Achieved 15th consecutive quarter of profit growth, with Q1 2025 profit before tax up 20% year-on-year to AED 2.907 billion and net profit after tax at AED 2.446 billion, ROE at 13.7%.

• Launched a five-year strategy aiming to double net profit to AED 20 billion by 2030, focusing on digital innovation, customer experience, sustainability, and enhanced returns.

• S&P upgraded long-term credit rating to A+; included in FTSE4Good Index and recognized for ESG leadership.

• Total assets increased to AED 679.7 billion as of March 31, 2025.

• Deloitte review found no material misstatements in interim financials.

Financial highlights

• Operating income rose 9% year-on-year to AED 5.013 billion; operating profit before impairment up 12% to AED 3.548 billion.

• Net interest income increased 3% year-on-year to AED 3.394 billion; non-interest income surged 26% to AED 1.619 billion, now 32% of operating income.

• Cost-to-income ratio improved 170 bps year-on-year to 29.2%; operating expenses down 6% sequentially.

• Net loans and advances up 13% year-on-year to AED 359 billion; customer deposits up 15% to AED 442 billion.

• Investment securities portfolio increased 13% year-on-year to AED 150 billion, 99% in bonds.

Outlook and guidance

• Five-year plan targets doubling net profit to AED 20 billion by 2030, with c.20% annual growth, ROE >15%, cost of risk <60 bps, and CET1 >12%.

• Loan growth expected in low double digits for 2025, with growth to accelerate in coming quarters.

• Risk-adjusted NIM expected to remain stable for the year despite rate cuts.

• Progressive dividend increases planned, with a targeted AED 25 billion payout over five years.

• Management is assessing the impact of new tax regulations (DMTT) effective from 2025.