ADCB posts strong Q3 earnings, launches AI transformation to drive future growth

Abu Dhabi Commercial Bank PJSC (ADCB) on Monday reported a net profit of Dh3.09 billion for Q3 2025, marking a 29 per cent year-on-year increase, while profit before tax rose 18 per cent to Dh3.17 billion. For the nine-month period, net profit reached Dh8.1 billion, up 18 per cent from the same period last year, with profit before tax climbing to Dh9.1 billion.

ADCB’s performance was driven by strong top-line growth, with operating income for Q3 rising 25 per cent year-on-year to Dh5.88 billion. Non-interest income surged 32 per cent to Dh2.07 billion, while net interest income grew 21 per cent to Dh3.81 billion. The bank’s cost-to-income ratio improved significantly to 27.6 per cent, reflecting gains from digital automation and operational efficiencies.

Recommended For You

Celebrating 25 years of Ahmed Al Maghribi Perfumes

Emaar Properties  records Dh61b in 9-month sales as backlog crosses Dh150b

Why Zohran Mamdani's election as New York City mayor resonates in Dubai

UAE inflation holds steady amid global uncertainty, GCC follows suit

Salman Khan flaunts his ripped body after a workout session

 

The bank’s balance sheet also showed strength, with total assets reaching Dh744 billion, up 17 per cent year-on-year. Net loans grew 17 per cent to Dh401 billion, and customer deposits rose 19 per cent to Dh482 billion, supported by a 27 per cent increase in current and savings account (CASA) deposits.

ADCB’s capital adequacy ratio stood at 16 per cent, with a Common Equity Tier 1 (CET1) ratio of 12.7 per cent. The non-performing loan (NPL) ratio improved to a record low of 1.86 per cent, while provision coverage rose to 187.3 per cent.

In a strategic move to support future growth, ADCB launched an AI transformation programme aimed at unlocking Dh4 billion in financial value through enhanced revenue, cost efficiencies, and risk management. The initiative will also bolster customer experience, fraud detection, and cybersecurity.

The bank’s retail and corporate banking divisions continued to perform strongly. Retail banking added over 80,000 new customers in Q3, with 67 per cent acquired digitally. CASA deposits in retail rose Dh18 billion year-on-year, while Islamic financing accounted for 59 per cent of new loan acquisitions. Corporate and investment banking expanded its international footprint, with loans outside the UAE rising 35 per cent year-to-date.

ADCB also announced a rights issue to raise up to Dh6.1 billion, approved by shareholders earlier this month. Mubadala Investment Company PJSC, the bank’s majority shareholder, confirmed its full participation in the offering.

ADCB Egypt contributed significantly to the group’s performance, posting a net profit of EGP 3.86 billion for 9M 2025, up 31 per cent year-on-year, with loan growth of 50 per cent.

The bank’s commitment to sustainability and national priorities was reflected in its 2025 Green Bond Report, which showed a 19 per cent increase in its Eligible Green Loan Portfolio. ADCB also received the Nafis Diamond Award for its Emiratisation efforts, with UAE nationals comprising 40 per cent of its workforce and 98 per cent of branch managers.

Looking ahead, ADCB remains focused on its five-year strategy to double net profit to Dh20 billion, targeting a return on equity of around 15 per cent for the full year. With continued investment in digital and AI capabilities, the bank is positioning itself as a data-led institution ready to deliver long-term value for shareholders and contribute to the UAE’s dynamic economy.

Somshankar Bandyopadhyay

• 

somshankar@khaleejtimes.com

Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.