Abu Dhabi Commercial Bank (ADCB) Q4 2025 earnings summary

Executive summary

• Achieved record full-year net profit after tax of AED 11.445 billion for FY'25, up 22% year-over-year, with profit before tax rising to AED 12.8 billion and Q4 net profit up 30% to AED 3.342 billion, marking 18 consecutive quarters of profit growth and a strong start to a new five-year strategy.

• Return on average equity improved to 15.3% for FY'25, reflecting enhanced profitability and capital efficiency.

• Board recommended a cash dividend of AED 0.63 per share for 2025, totaling AED 4.99 billion, or 44% of net profit, subject to shareholder approval.

• Consolidated financial statements for the year ended December 31, 2025, were audited and present a fair view in accordance with IFRS, subject to regulatory and shareholder approval.

• The audit identified key matters: expected credit loss (ECL) allowances on loans and advances, and IT system access controls.

Financial highlights

• Operating income rose 14% year-over-year to AED 22.2 billion, driven by double-digit growth in both net interest income (+11%) and non-interest income (+20%).

• Net loans increased 16% to AED 406 billion; customer deposits up 19% to AED 500 billion, with CASA balances at 46% of total deposits.

• Total assets increased 19% to AED 774 billion.

• Basic earnings per share increased to AED 1.45 from AED 1.17.

• Cost-to-income ratio improved to a record low of 28.2% (from 31.0% in 2024), reflecting strong efficiency gains.

Outlook and guidance

• Five-year strategy targets doubling net profit to AED 20 billion and cumulative dividend payout of AED 25 billion, with annual net profit growth of ~20%.

• 2026 guidance: CET1 ratio >12%, cost of risk <60 bps, ROE >15%, and progressive dividend increases.

• Lending momentum expected to persist, with robust demand in the UAE and continued international expansion.

• The Group is assessing the impact of new IFRS standards effective from 2026 and 2027.

• Strong UAE macroeconomic fundamentals and robust liquidity expected to support continued growth.