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Abu Dhabi Commercial Bank posts record Q1 2026 profit
Lender reports 30% year-on-year rise in Q1 2026 profit before tax to Dh3.78 billion, supported by strong loan growth, higher non-interest income and improved efficiency ratios
- PUBLISHED: Thu 23 Apr 2026, 3:53 PM
Abu Dhabi Commercial Bank (ADCB) on Thursday reported a record profit before tax of Dh3.781 billion in the first quarter of 2026, up 30 per cent year on year, extending its profit growth streak to 19 consecutive quarters as diversified income streams and strong balance sheet growth continued to support performance.
Net profit after tax rose to Dh3.361 billion, translating into a return on average equity of 16.3 per cent, above the bank’s medium-term guidance of more than 15 per cent. Operating income increased 18 per cent year on year to Dh5.934 billion, driven largely by a sharp rise in non‑interest income, which jumped 36 per cent year on year to Dh2.196 billion and accounted for 37 per cent of total operating income.
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ADCB also reported its lowest-ever quarterly cost-to-income ratio of 25.6 per cent, reflecting strong revenue growth and disciplined cost management, with operating expenses falling 8 per cent quarter on quarter.
Ala’a Eraiqat, Group Chief Executive Officer of ADCB, said the performance reflected operational consistency and the bank’s strategic focus. “In the first quarter, the Bank delivered a strong performance, with profit before tax increasing by 30 per cent year on year to a record Dh3.781 billion, marking 19 consecutive quarters of profit growth,” he said.
He added that ADCB had entered the second year of its five-year strategy with a focus on becoming “a technology-driven organisation”, supported by a strong capital and liquidity position and confidence in the UAE’s long-term economic fundamentals.
Balance sheet growth remained robust, with net loans to customers rising by Dh20 billion during the quarter to Dh426 billion, up 18 per cent year on year, supported by expansion across key sectors including government-related entities and financial institutions. Customer deposits increased by Dh23 billion to Dh523 billion, with Dh14 billion coming from current and savings accounts, strengthening the bank’s funding mix.
Asset quality continued to improve, with the non-performing loan ratio falling to 1.76 per cent, compared with 2.24 per cent a year earlier.
Deepak Khullar, Group Chief Financial Officer, said growth was broad-based across ADCB’s core businesses. “A combination of a diversified revenue mix and enhanced efficiency continues to support a high-quality and resilient earnings base,” he said, noting that non-interest income growth and productivity gains had driven the record-low cost-to-income ratio.
Khullar added that the bank’s strong capital position — with a CET1 ratio of 13.82 per cent — and solid credit pipeline provided “clear visibility on future loan growth”, positioning ADCB to navigate an evolving operating environment while remaining on track to meet its financial targets.
ADCB reiterated its full‑year 2026 and medium‑term guidance, citing solid business momentum and confidence in the UAE’s economic fundamentals. The bank expects to sustain returns above 15 per cent and disciplined risk and capital management, supported by a strong balance sheet and diversified income base.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.