ADCB's Q1'25 Profit Before Tax Jumps 20% YoY to AED 2.907 Billion

Abu Dhabi Commercial Bank (ADCB) reported a robust start to the year, delivering its 15th straight quarter of profit growth. In Q1 2025, profit before tax reached AED 2.91 billion, up 20% year-on-year. This performance reflects strong income diversification and improved efficiency, supported by the solid fundamentals of the UAE economy.

Financial Highlights: Growth Across Key Metrics

Compared to Q1 2024, ADCB recorded:

> Net profit after tax of AED 2.45 billion

> Net interest income rose 3% to AED 3.39 billion

> Non-interest income surged 26% to AED 1.62 billion

> Operating income grew 9% to AED 5.01 billion

> Operating profit before impairments reached AED 3.55 billion (up 12%)

> The cost-to-income ratio improved to 29.2%, down 170 basis points

Expanding Balance Sheet Reflects Lending and Deposit Growth

Total assets increased to AED 680 billion, a 14% rise year-on-year and 4% quarter-on-quarter.

> Net loans climbed to AED 359 billion, up 13% YoY and 3% QoQ

> Customer deposits reached AED 442 billion, up 15% YoY and 5% QoQ

> CASA deposits grew to AED 198 billion, making up 45% of total deposits

> Strengthening Capital and Asset Quality

ADCB maintained a solid capital position:

> Capital adequacy ratio: 16.07%

> CET1 ratio: 12.59%

> Liquidity coverage ratio: 138.6%

> Loan-to-deposit ratio: 81.4%

Credit quality improved:

> Cost of risk dropped to 0.49% from 0.67% a year ago

> NPL ratio improved to 2.24%, down from 3.44% in March 2024

> Provision coverage rose to 150.1%, or 260% including collateral

Strategic Moves and Operational Highlights

In Q1 2025, ADCB continued executing its strategic plan with major developments:

> A new five-year strategy was launched to double net profit to AED 20 billion by 2030

> Focus areas include digital innovation, ESG leadership, and customer-centric services

Other milestones included:

> Full Emiratisation of Al Ain branches—an industry first

> Inclusion in the FTSE4Good Index for ESG excellence

> Long-term credit rating upgraded to ‘A+’ by S&P

> Launch of Meedaf, a financial services platform for GCC banks

> Named UAE’s strongest banking brand, with AED 12.3 billion in brand value

Performance Driven by Digital and Customer Focus

Retail Banking saw strong customer acquisition, with 89,000 new clients onboarded—71% through digital channels. Digital transformation initiatives such as multi-CASA account openings and AI-driven application approvals enhanced efficiency and user experience.

Corporate and Investment Banking Expansion

ADCB’s Corporate and Investment Banking Group added over 100 new large corporate and GRE clients and more than 2,000 mid-sized business relationships. It played lead roles in notable deals, including a USD 500 million green sukuk by Aldar and a USD 1 billion sukuk by Ras Al Khaimah.

Private Banking and Wealth Management on Growth Trajectory

The Bank’s private banking arm posted a 46% annual increase in assets under management. Client base expanded by 7% in Q1 alone, driven by an integrated advisory and banking approach.

Pioneering Innovation with Meedaf

In line with its new strategy, ADCB launched Meedaf in April 2025. Operating out of Abu Dhabi Global Market, the venture is focused on helping regional financial institutions cut costs and boost efficiency through digital innovation.

ESG Leadership and Sustainability Commitments

ADCB released its 2024 ESG Report, conducting its first double materiality assessment aligned with international standards. Recognised with a “Regional top-rated” badge by Sustainalytics, ADCB is also shaping national ESG policy as a knowledge partner to the Global Climate Finance Centre.

Outlook: Positioned for Sustainable Growth

Backed by a strong capital base, prudent risk management, and a dynamic operating environment, ADCB is well-placed to deliver sustainable value. The Bank’s balanced growth strategy, digital investments, and customer-first approach continue to drive performance and support national economic development.