Abu Dhabi Islamic Bank (ADIB) reported a year of exceptional financial performance for the full year ended 31 December 2025, delivering record profitability, strong balance sheet growth and industry-leading returns.
ADIB recorded net profit before tax of AED 8.1 billion, an 18% increase compared to 2024. Net profit after tax rose 16% to AED 7.1 billion, supported by broad-based growth across all business segments, sustained customer acquisition, disciplined cost management and continued balance sheet expansion.
Key Financial Highlights
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Net profit before tax: AED 8.1 billion, up 18%
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Net profit after tax: AED 7.1 billion, up 16%
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Return on equity: 28.8%
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Total operating income: AED 12.3 billion, up 16%
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Total assets: AED 281 billion, up 24%
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Gross customer financing: AED 186 billion, up 26%
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Customer deposits: AED 229 billion, up 25%
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Cost-to-income ratio: 28.6%, improved by 93 basis points
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Non-performing asset ratio: 2.8%, improved from 4.0%
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Common Equity Tier 1 ratio: 12.0%
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Total capital adequacy ratio: 15.7%
Strong Revenue Momentum and Diversified Income Streams
Total operating income grew 16% year on year to AED 12.3 billion, supported by growth in both funded and non-funded income.
Funded income increased 15% to AED 7.6 billion, driven by higher financing volumes and effective balance sheet deployment. Non-funded income grew 17% to AED 4.8 billion, reflecting strong performance across fees and commissions, investment income, and foreign exchange activities. Non-funded income now represents 39% of total operating income, underscoring the bank’s continued progress in revenue diversification.
Efficiency Gains Amid Continued Investment
Operating expenses rose 12% to AED 3.5 billion, reflecting continued investments in talent, technology, digital platforms, and growth initiatives. Despite increased spending, ADIB achieved further efficiency gains, with the cost-to-income ratio improving by 93 basis points to 28.6%.
Strong Asset Quality and Risk Profile
ADIB maintained a disciplined approach to risk management throughout 2025. Impairment charges increased 9% to AED 678 million, translating to a cost of risk of 44 basis points, in line with guidance.
The non-performing asset ratio improved to a record low of 2.8%, supported by portfolio remediation and prudent underwriting standards. Provision coverage including collateral strengthened to 172.5%.
Balance Sheet Expansion Driven by Financing and Deposits Growth
Total assets increased 24% year on year to AED 281 billion, driven by strong growth in customer financing and the investment portfolio.
Gross customer financing rose 26% to AED 186 billion, reflecting market share gains across retail, government-related entities, and corporate banking. Customer deposits increased 25% to AED 229 billion, supported by strong inflows into current and savings accounts. CASA balances grew 14%, accounting for 64% of total deposits, contributing to a healthy funding mix and margin resilience.
Robust Capital and Liquidity Position
ADIB ended the year with a strong capital position, with a Common Equity Tier 1 ratio of 12.0% and a total capital adequacy ratio of 15.7%, well above regulatory requirements.
Liquidity metrics also strengthened, with the advances to stable funding ratio improving to 84.1% and the eligible liquid asset ratio increasing to 19.4%. Total equity increased 14% to AED 32.4 billion, driven by strong earnings generation.
Proposed Dividend Reflects Strong Shareholder Returns
In recognition of the bank’s strong performance and capital position, ADIB’s Board has proposed a final cash dividend of 97 fils per share, bringing the total dividend payout for 2025 to AED 3.5 billion, equivalent to 50% of net profit, subject to shareholder approval.
Strategic Transition Under Vision 2035
2025 marks the successful completion of ADIB’s five-year strategic cycle, with all key financial and operational targets achieved. The bank has now entered the next phase of growth under its Vision 2035 strategy, focusing on building a future-ready Islamic bank through AI-powered transformation, enhanced digital capabilities, superior customer experience, and embedded sustainability, aligned with the UAE’s long-term economic ambitions.
