ADIB nine-month profit rises 6% to Dh5.6 billion as financing jumps 25%

Dubai: Abu Dhabi Islamic Bank (ADIB) reported a 6% increase in net profit after tax to Dh5.6 billion for the first nine months of 2026, supported by strong customer financing growth, higher revenues and improving asset quality.

Profit before tax rose 6% year-on-year to Dh6.4 billion, while total revenue increased by the same percentage to Dh9.7 billion. The bank reported a return on equity of 28%.

Customer financing grew 25% year-on-year, adding Dh43 billion over the past 12 months, as demand increased across retail and wholesale banking. Financing also rose 18%, or Dh33 billion, since the beginning of the year.

ADIB added more than 200,000 customers during the nine-month period, supporting further expansion of its banking operations.

Deposits rise to Dh259 billion

Total assets increased 18% year-on-year to Dh318 billion at the end of September, while customer deposits climbed 17% to Dh259 billion, including Dh30 billion added since the start of 2026.

Current and savings accounts accounted for 60% of total deposits, providing the bank with a substantial base of relatively low-cost funding.

Funded income rose 11% to Dh6.1 billion, supported by higher financing volumes, while the net profit margin stood at 3.64%.

Non-funded income reached Dh3.6 billion, representing 37% of total revenue. Net fee and commission income increased 9% year-on-year to Dh591 million in the third quarter, driven partly by higher card income and processing fees.

Operating expenses rose 9% to Dh2.8 billion as ADIB continued investing in technology, staffing and business expansion. Its cost-to-income ratio stood at 29.1%.

Bad loans decline

The bank reported further improvement in credit quality, with its non-performing asset ratio falling to a record low of 2%.

Impairment charges declined 12% year-on-year to Dh451 million, while the cost of risk stood at 30 basis points.

Provision coverage excluding collateral improved to 114.3%, compared with 89.3% a year earlier, indicating stronger provisions against troubled financing.

Total equity increased 11% to Dh34 billion, while the bank's common equity tier 1 (CET1) capital ratio stood at 12.4% at the end of September.

ADIB said its Dh1.75 billion rights issue would further strengthen its capital position and support expansion under its Vision 2035 strategy.

Mohamed Abdelbary, Group Chief Executive Officer of ADIB, said: “Our performance reflects the broad-based growth across ADIB, with strong profitability, continued customer and financing growth, and robust asset quality.” He added that a healthy pipeline across retail and wholesale banking would support the bank's growth plans.