Abu Dhabi Islamic Bank (ADIB) Q1 2026 earnings summary

Executive summary

• Net profit before tax reached AED 2.1 billion, up 8% year-on-year, with profit after tax at AED 1.8 billion, up 7% year-on-year.

• Revenue grew 12% year-on-year to AED 3.2 billion, with underlying growth closer to 19% when normalizing for rate impacts.

• Customer base expanded by 66,000 new clients in Q1, reflecting strong acquisition momentum and franchise strength.

• Balance sheet assets rose to AED 287 billion, an 18% increase year-on-year.

• Maintained high asset quality, with NPA ratio improving to 2.6% and strong liquidity and capital positions.

Financial highlights

• Gross customer financing reached AED 198 billion, up 28% year-on-year, with retail portfolio surpassing AED 100 billion.

• Customer deposits grew 20% year-on-year to AED 239 billion; CASA deposits increased by AED 15.5 billion, now 67% of total deposits.

• Non-funded income rose 4% year-on-year, now 36% of total income, driven by investment income and steady client activity.

• Cost-to-income ratio at 29.6%, within sub-30% guidance; return on equity at 27%.

• Provisions increased 58% year-on-year to AED 158 million, mainly from wholesale portfolio normalization.

Outlook and guidance

• Full-year and medium-term guidance reiterated, with gross financing growth expected at 12%-14% for FY 2026 and net financing margin guidance at 3.8%-4%.

• Cost of risk guidance maintained at 40-60 basis points; cost-to-income ratio to remain below 30%.

• Management remains cautiously optimistic about exceeding loan growth guidance, with a potential update after Q2.

• Revenue growth expected to accelerate as client sentiment and activity normalize.

• Return on equity expected to remain above 25% on continued profit growth and capital efficiency.