Abu Dhabi Islamic Bank (ADIB) Q4 2025 earnings summary

Executive summary

• Completed a five-year strategic cycle, exceeding key targets and strengthening the franchise with disciplined execution, digital transformation, and improved risk and capital discipline.

• Net income before tax reached AED 8.1 billion, up 18% year-on-year; post-tax net profit was AED 7.1 billion, up 16%, with ROE at 28.8%.

• Revenue grew 16% year-on-year to AED 12.3 billion, with non-funded income up 17% and now 39% of total income.

• Added 283,000 new clients in 2025, reflecting strong customer acquisition and franchise expansion.

• Proposed cash dividend of 97 fils per share, up from 83 fils in 2024, representing 50% of net profit.

Financial highlights

• Total assets expanded 24% to AED 281 billion; customer financing increased 27% to AED 181 billion; deposits rose 25% to AED 229 billion.

• Cost-to-income ratio improved to a historic low of 28.6%, down 93 bps year-on-year.

• Earnings per share increased to AED 1.746 from AED 1.493.

• Operating profit before impairment rose 17.3% to AED 8,779.1 million.

• NPL/NPA ratio improved to 2.8%, the lowest in the bank’s history; coverage ratio at 92%.

Outlook and guidance

• Aspires to grow total assets by 1.7-1.9x by 2030, targeting a half-trillion dirham balance sheet.

• Cost-to-income ratio guidance for 2026 is below 30%, with a long-term target of 26%-28%.

• Financing growth guidance for 2026 is 12%-14%; net profit margin expected between 3.8%-4%.

• Cost of risk to remain at 40-60 bps; ROE guidance north of 25%.

• International business contribution expected to remain at 14%-15% of group P&L.