ADCB Credit Rating Upgraded to 'A+' by S&P Reflecting Strong Financial Health

Abu Dhabi Commercial Bank (ADCB) has secured an upgrade in its long-term issuer credit rating from ‘A’ to ‘A+’ with a ‘stable’ outlook by S&P Global Ratings. This improvement reflects the bank’s robust financial health and high asset quality, placing ADCB among the top three highest-rated banks in the MENA region.

Enhancing Stability and Growth Strategy

With its solid investment-grade rating, ADCB benefits from a competitive cost of capital, reinforcing its ability to execute a strategic plan aimed at accelerating growth. The bank is targeting a substantial increase in net profit, aiming to reach AED 20 billion within the next five years.

In a research update, S&P said: “Sound earnings generation and high capital retention still underpin ADCB’s capitalisation, which we view as a key rating strength.”

The rating agency added: “We believe the Bank’s asset quality will continue to benefit from the strengthening of its risk management culture and control framework over the past four years. We view these improvements, along with a more contained risk appetite, as enduring and therefore positioning the Bank to better navigate economic cycles.”

Transformational Growth Since 2020

As a key financial institution contributing to the UAE’s economic expansion, ADCB has experienced a remarkable transformation in scale and profitability. Since launching its previous strategy in 2020, the bank has recorded a 28% compound annual growth rate (CAGR) in pre-tax profit, surpassing AED 10 billion in 2024—a milestone achieved a year ahead of schedule.

Expanding Market Presence and Financial Strength

ADCB’s solid market position has fuelled significant balance sheet growth, with total assets rising by 59% since 2020 to exceed AED 650 billion in 2024. Net loans have expanded at a 10% CAGR, supported by a strategic shift in lending priorities. Notably, the bank’s exposure to government-related entities (GREs) has grown from 21% of gross loans in 2020 to 27% in 2024. Simultaneously, ADCB’s strong brand and customer trust have driven deposit inflows at a 14% CAGR over the same period.