Abu Dhabi Commercial Bank

1. Company Overview & Earnings Context

Abu Dhabi Commercial Bank (ADCB) is one of the UAE's leading banking institutions, listed on the Abu Dhabi Securities Exchange (ADX). The bank provides retail, corporate, commercial, investment and Islamic banking services, serving individuals, businesses and institutions across the UAE and international markets.

For the nine months ended September 30, 2026, ADCB delivered strong financial performance, with operating income increasing 10% year-on-year to AED 18.31 billion and net profit rising 27% to AED 10.30 billion. Growth was supported by expanding lending activity, higher non-interest income, improved operating efficiency and lower impairment charges. The bank also reported its 21st consecutive quarter of year-on-year profit growth.

2. Financial Performance Snapshot

• Operating Income: AED 18.31 billion (+10% YoY)

• Net Interest and Islamic Financing Income: AED 11.34 billion (+4%)

• Non-Interest Income: AED 6.96 billion (+21%)

• Net Fees and Commission Income: AED 3.37 billion (+24%)

• Net Trading Income: AED 2.89 billion (+39%)

• Operating Profit Before Impairment: AED 13.30 billion (+11%)

• Operating Expenses: AED 5.01 billion (+9%)

• Impairment Charges: AED 1.65 billion (-44%)

• Profit Before Tax: AED 11.67 billion (+28%)

• Income Tax Expense: AED 1.37 billion (+37%)

• Net Profit: AED 10.30 billion (+27%)

• Basic EPS: AED 1.25, compared with AED 1.02 in 9M 2025

3. Operational Highlights & Key Metrics

• Total Assets: AED 889.99 billion (+20% YoY)

• Net Loans and Advances: AED 468.99 billion (+18%)

• Customer Deposits: AED 558.16 billion (+16%)

• Total Equity: AED 91.08 billion

• Net Interest-Earning Assets: AED 737.82 billion (+18%)

• Return on Average Equity (ROAE): 16.2%, compared with 14.7%

• Net Interest Margin: 2.22%

• Risk-Adjusted Net Interest Margin: 1.89%

• Cost-to-Income Ratio: 27.3%, improving by 40 basis points

• Non-Performing Loan Ratio: 1.60%, a record low

• Cost of Risk: 0.36%, compared with 0.73%

• Provision Coverage Ratio: 156.0%

• Capital Adequacy Ratio: 16.54%

• CET1 Capital Ratio: 13.79%

• Liquidity Coverage Ratio: 116.8%

• CASA Deposits: 45.0% of total customer deposits

• Loan-to-Deposit Ratio: 84.0%

ADCB also reported AED 66 billion in net loan growth and AED 58 billion in customer deposit growth during the first nine months of 2026, reflecting sustained demand for financing and the strength of its banking franchise.

4. Key Performance Drivers

ADCB's earnings growth was supported by strong lending momentum, diversified revenue streams and improved credit quality. Net loans increased 16% year-to-date, driven by expansion across personal banking, government and public-sector financing, financial institutions, trading and energy.

Non-interest income increased 21% to AED 6.96 billion, representing 38% of total operating income. This growth was supported by higher loan processing fees, trade finance activity, card-related income and trading gains.

Operating efficiency also improved, with the cost-to-income ratio declining to 27.3%, despite continued investment in technology, artificial intelligence, talent and digital capabilities.

Asset quality remained strong, with impairment charges declining 44% to AED 1.65 billion. The non-performing loan ratio improved to a record low of 1.60%, while the cost of risk declined to 36 basis points, contributing significantly to higher profitability.

5. Outlook & Forward Guidance

ADCB remains focused on executing its five-year growth strategy, supported by continued lending expansion, revenue diversification, disciplined cost management and investments in artificial intelligence and digital banking.

Following strong asset quality performance, management revised its full-year 2026 cost-of-risk guidance to below 50 basis points, compared with its previous guidance of below 60 basis points.

The bank also reaffirmed its broader strategic objectives, including maintaining a CET1 capital ratio above 12%, achieving return on equity above 15% and doubling annual net profit to AED 20 billion within five years, representing approximately 20% annual growth.

ADCB continues to target progressive year-on-year dividend growth, with a cumulative dividend payout objective of approximately AED 25 billion over its five-year strategy period, subject to the necessary approvals.

6. Investor Takeaway

ADCB delivered a strong 9M 2026 performance, with operating income rising 10% to AED 18.31 billion and net profit increasing 27% to AED 10.30 billion. Profit before tax reached AED 11.67 billion, supported by diversified income growth, lower impairment charges and improved operating efficiency.

The bank's balance sheet continued to expand, with total assets approaching AED 890 billion, net loans reaching AED 469 billion and customer deposits increasing to AED 558 billion. Asset quality also strengthened, with the non-performing loan ratio declining to a record low of 1.60%.

Going into Q4 2026, key areas to monitor include lending and deposit growth, non-interest income, net interest margins, credit quality, capital adequacy and progress toward ADCB's five-year profitability and dividend objectives.