Abu Dhabi Islamic Bank

1. Company Overview & Earnings Context

Abu Dhabi Islamic Bank (ADIB) is an Abu Dhabi Securities Exchange (ADX)-listed Islamic financial institution providing Sharia-compliant retail, corporate, business and investment banking services. The bank serves individuals, businesses and institutional customers through its expanding banking network and digital platforms.

For the nine months ended September 30, 2026, ADIB delivered strong financial performance, with operating revenue increasing 6% year-on-year to AED 9.71 billion and net profit rising 6% to AED 5.61 billion. Growth was supported by expanding customer financing, higher funded income, improved asset quality and continued customer acquisition. The bank also announced an AED 1.75 billion rights issue to support its long-term growth strategy under Vision 2035.

2. Financial Performance Snapshot

• Total Operating Revenue: AED 9.71 billion (+6% YoY)

• Net Funded Income: AED 6.11 billion (+11%)

• Non-Funded Income: AED 3.60 billion (-0.5%)

• Net Fees and Commission Income: AED 1.64 billion (+0.4%)

• Operating Expenses: AED 2.83 billion (+9%)

• Net Impairment Charges: AED 450.63 million (-12%)

• Profit Before Tax: AED 6.43 billion (+6%)

• Income Tax Expense: AED 823.85 million (+12%)

• Net Profit: AED 5.61 billion (+6%)

• Net Profit Attributable to Shareholders: AED 5.26 billion (+5%)

• EPS: AED 1.38, compared with AED 1.31 (+5%)

Compared with 9M 2025:

• Operating revenue increased from AED 9.15 billion to AED 9.71 billion.

• Net funded income increased from AED 5.53 billion to AED 6.11 billion.

• Operating expenses increased from AED 2.59 billion to AED 2.83 billion.

• Impairment charges declined from AED 511 million to AED 451 million.

• Profit before tax increased from AED 6.05 billion to AED 6.43 billion.

• Net profit increased from AED 5.32 billion to AED 5.61 billion.

3. Operational Highlights & Key Metrics

• Total Assets: AED 317.64 billion (+18% YoY)

• Gross Customer Financing: AED 218 billion (+25%)

• Net Customer Financing: AED 214.55 billion (+26%)

• Customer Deposits: AED 258.73 billion (+17%)

• Total Equity: AED 33.80 billion (+11%)

• Investment Portfolio: AED 35.72 billion (+3%)

• CASA Deposits: AED 155 billion, representing 60% of deposits

• Return on Average Equity: 27.5%

• Return on Average Assets: 2.55%

• Net Profit Margin: 3.64%

• Cost-to-Income Ratio: 29.1%

• Non-Performing Asset Ratio: 2.0%, compared with 3.3%

• NPA Coverage Ratio: 114.3%

• NPA Coverage Including Collateral: 183.3%

• Cost of Risk: 0.30%

• Capital Adequacy Ratio: 15.6%

• CET1 Capital Ratio: 12.4%

• Financing-to-Deposit Ratio: 82.9%

• Advances-to-Stable-Funding Ratio: 86.9%

• Eligible Liquid Asset Ratio: Approximately 15%

• New Customers Acquired: Over 200,000

• Net Cash Generated from Operating Activities: AED 7.54 billion

ADIB also reported strong growth across retail and wholesale banking, with retail financing increasing 21% year-on-year to AED 109 billion and wholesale financing rising 29% to AED 86 billion.

4. Key Performance Drivers

ADIB's earnings growth was primarily supported by strong customer financing expansion and higher funded income. Gross customer financing increased 25% year-on-year to AED 218 billion, driven by sustained demand across retail, government-related entities and corporate banking. Net funded income increased 11% to AED 6.11 billion, while non-funded income remained broadly stable at AED 3.60 billion.

Operating expenses increased 9% to AED 2.83 billion, reflecting continued investment in employees, technology, digital banking and business expansion. Despite higher costs, ADIB maintained a cost-to-income ratio of 29.1%, demonstrating continued operating efficiency.

Asset quality improved significantly, with the non-performing asset ratio declining to a record low of 2.0% from 3.3%. Net impairment charges decreased 12% to AED 451 million, while the cost of risk improved to 30 basis points. Strong customer acquisition, with more than 200,000 new customers, also supported deposit growth and business expansion.

5. Outlook & Forward Guidance

ADIB remains focused on executing its Vision 2035 strategy, which aims to accelerate growth across retail banking, wholesale banking, wealth management and digital financial services. The bank continues to invest in artificial intelligence, digital onboarding, customer experience and technology-driven banking solutions.

The announced AED 1.75 billion rights issue is expected to strengthen ADIB's capital position and provide additional capacity for future financing growth. Management highlighted continued opportunities from the UAE's economic diversification, infrastructure investments and growing private-sector activity.

ADIB also remains committed to expanding its sustainable finance portfolio, having mobilised and facilitated AED 23.3 billion by September 2026 toward its AED 60 billion target by 2030. The bank continues to prioritise disciplined risk management, customer acquisition and diversified revenue growth.

6. Investor Takeaway

ADIB delivered strong 9M 2026 financial results, with operating revenue increasing 6% to AED 9.71 billion and net profit rising 6% to AED 5.61 billion. Profit before tax reached AED 6.43 billion, supported by higher financing income, expanding business volumes and lower impairment charges.

The bank's balance sheet continued to strengthen, with total assets reaching AED 317.64 billion, gross customer financing increasing 25% to AED 218 billion and customer deposits rising 17% to AED 258.73 billion. Asset quality also improved, with the non-performing asset ratio declining to a record low of 2.0%.

Looking ahead, investors should monitor financing and deposit growth, net profit margins, operating efficiency, capital adequacy, asset quality and the impact of the AED 1.75 billion rights issue as ADIB continues executing its Vision 2035 growth strategy.