ADIB posts record 2025 profit as assets, financing and deposits surge

Dubai: Abu Dhabi Islamic Bank (ADIB) reported record financial results for 2025, supported by double-digit growth in profit, revenues and balance sheet size, as financing activity and customer acquisition accelerated across retail and corporate banking.

The lender said net profit before tax rose 18% year on year to AED 8.1 billion, while net profit after tax increased 16% to AED 7.1 billion, reflecting higher business volumes, broader revenue streams and sustained operating momentum.

ADIB also delivered a strong fourth quarter, with net profit before tax rising 25% year on year to AED 2.05 billion. Net profit after tax for the quarter reached AED 1.75 billion, up 20% from the same period last year.

ADIB’s board proposed a final dividend of 97 fils per share. This brings total dividend distribution for the year to AED 3.5 billion, an increase of AED 495 million from the previous payout. 

Chairman Jawaan Awaidah Al Khaili said the bank delivered record profitability and balance sheet growth in 2025 as it completed its previous strategic cycle.

“2025 marked another year of exceptional performance for the group, as we delivered record profitability, strong balance sheet growth and industry-leading returns,” he said. “We are now entering the next phase of the journey as part of the ADIB 2035 Vision, with a five-year plan to drive the next phase of growth, transformation, and long-term value creation.”

ADIB said both revenue and profit reached record levels during the year, supported by strong customer activity and the addition of 283,000 new customers. The bank said its next five-year strategy aligns with the UAE’s long-term economic agenda and its focus on expanding Islamic financial assets.

Total revenue for 2025 increased 16% year on year to AED 12.3 billion, compared with AED 10.6 billion in 2024. The bank said growth was supported by expansion across key business segments, higher customer activity and rising fee-based income.

Funded income rose 15% to AED 7.6 billion, driven by higher financing volumes and balance sheet expansion, partly offsetting the impact of rate cuts since September 2024. The net profit margin reached 4.11%, reflecting business volume growth and funding mix efficiency.

Non-funded income increased 17% to AED 4.8 billion, up from AED 4.1 billion a year earlier. Fee-based revenues rose 16% across retail and corporate products, lifting non-funded income to 39% of operating income.

ADIB said cost discipline and revenue growth improved operating efficiency during the year. The cost-to-income ratio declined to 28.6% from 29.6% in 2024.

Operating expenses rose 12% year on year to AED 3.5 billion. The bank said the increase reflected continued investment in staff, digital platforms and technology infrastructure. 

Impairment charges increased 9% to AED 678 million in 2025, translating to a cost of risk of 44 basis points, in line with guidance.

The non-performing asset ratio improved to 2.8%, the lowest level recorded by the bank. Provision coverage, including collateral, rose to 172.5%, while coverage excluding collateral increased to 92.0% from 81.5% a year earlier.