Abu Dhabi Commercial Bank (ADCB) Q3 2025 earnings summary

Executive summary

• Q3 2025 profit before tax rose 18% year-on-year to AED 3.166 billion, marking 17 consecutive quarters of growth, with nine-month profit before tax at AED 9.108 billion and net profit after tax at AED 8.1 billion, ROAE at 14.7%.

• Total assets increased to AED 744.3 billion, reflecting robust balance sheet expansion.

• Rights issue of up to AED 6.1 billion launched to support asset growth and capital buffers, with full support from majority shareholder Mubadala.

• AI transformation program launched, targeting AED 4 billion in value and aiming to double net profit to AED 20 billion in five years.

• Statutory tax rate reduced from 15% to 9% for 9M'25 due to International Activity Exclusion, with reversal of excess tax provisions.

Financial highlights

• Operating income for the first nine months grew 19% year-on-year to AED 16.62 billion, with operating profit before impairment up 26%.

• Net interest income for 9M'25 was AED 10.85 billion, up 12% year-on-year; non-interest income rose 34% to AED 5.76 billion, now 34.7% of total operating income.

• Q3 operating income increased 25% year-on-year to AED 5.9 billion, with operating profit before impairment up 33%.

• Cost-to-income ratio improved to 27.7% for 9M'25, a 420 bps year-on-year improvement.

• Net loans grew 17% year-on-year to AED 401 billion, and customer deposits increased 19% to AED 482 billion.

Outlook and guidance

• Full-year 2025 cost of risk guided at 63–68 bps; five-year guidance remains below 60 bps.

• On track to achieve 15% ROE for full year 2025 and targeting AED 20 billion net profit within five years.

• Dividend policy targets AED 25 billion payout over five years, with progressive dividends and lower payout ratio.

• Loan growth expected to end in the late teens percentage, above initial expectations.

• The Group expects to maintain a 9% UAE tax rate for 2025, pending final confirmation.