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Earnings Report

Abu Dhabi Islamic Bank

Q1 26 BULLISH HIGH Impact

1. Company Overview & Earnings Context

Abu Dhabi Islamic Bank (ADIB) reported its Q1 2026 results, delivering a strong and stable performance, supported by balance sheet expansion and sustained profitability.

2. Financial Performance Snapshot

  • Revenue: AED 3.2B (+12% YoY)

  • Funded income: AED 2.0B (+17% YoY)

  • Net profit before tax: AED 2.1B (+8% YoY)

  • Net profit after tax: AED 1.8B (+7% YoY)

  • ROAE / ROE: 27.1% (industry-leading)

  • Cost-to-income ratio: 29.6% (slightly higher YoY)

  • Net profit margin: 3.91% (−40 bps YoY)

  • Non-funded income: AED 1.2B (+4% YoY; 36% of operating income)

3. Operational Highlights & Key Metrics

  • Customer financing: AED 198B (+28% YoY)

  • Deposits: AED 239B (+20% YoY)

  • CASA ratio: 67% of deposits (strong funding mix)

  • NPA ratio: 2.6% (improved from 3.7%)

  • Cost of risk: 0.48% (within guidance)

  • CET1 ratio: 12.0% (well-capitalized)

  • Total assets: AED 287B (+18% YoY)

4. Key Performance Drivers

ADIB’s Q1 performance was primarily driven by strong financing growth and balance sheet expansion, which supported both revenue and funded income growth. Continued customer acquisition (66,000 new customers) and deeper relationships helped diversify income streams, with non-funded income contributing meaningfully. At the same time, cost discipline remained intact despite higher investments in technology and expansion. Margin pressure was visible with a slight decline in net profit margin, while improving asset quality and lower NPA ratio reflected prudent risk management.

5. Outlook & Forward Guidance

Management maintains a positive and stable outlook, supported by a strong balance sheet, healthy liquidity, and capital levels above regulatory requirements. The bank continues to focus on sustainable growth, revenue diversification, and digital expansion, while keeping cost of risk within guidance and maintaining high returns.

6. ???? Investor Takeaway

ADIB’s Q1 2026 results highlight strong balance sheet-driven growth with high profitability, supported by solid asset quality and disciplined execution.