Abu Dhabi Islamic Bank (ADIB) posted a strong set of first‑quarter results for 2026, supported by balance sheet expansion, resilient income growth and disciplined risk management. The bank reported net profit before tax of AED 2.1 billion, marking an 8 percent year‑on‑year increase, while maintaining sector‑leading profitability metrics.
Total operating income rose 12 percent year‑on‑year to AED 3.2 billion, underpinned by growth across both funded and non‑funded income streams. Funded income increased 17 percent to AED 2.0 billion, reflecting higher financing volumes and favourable repricing, while non‑funded income reached AED 1.2 billion, representing 36 percent of total income. Net profit after tax stood at AED 1.8 billion, up 7 percent year‑on‑year, with earnings per share rising to AED 0.44.
The bank continued to deliver strong balance sheet momentum during the quarter. Total assets increased 18 percent year‑on‑year to AED 287 billion, driven by robust financing activity across retail, government‑related entities and large corporate segments. Gross customer financing grew 28 percent year‑on‑year to AED 198 billion, while customer deposits rose 20 percent to AED 239 billion, supported by a healthy inflow of low‑cost funds. CASA balances accounted for 67 percent of total deposits, reinforcing ADIB’s strong liquidity profile.
Asset quality trends continued to improve, with the non‑performing asset ratio declining to a record low of 2.6 percent, down 1.1 percentage points compared to the same period last year. Provision coverage strengthened further, with coverage excluding collateral increasing to 98.8 percent, and coverage including collateral reaching 178.3 percent. The cost of risk remained contained at 48 basis points, highlighting the bank’s conservative underwriting approach and proactive risk management.
Profitability remained robust despite ongoing margin pressures across the sector. Return on equity for the quarter stood at 27.1 percent, while the cost‑to‑income ratio was maintained at a disciplined 29.6 percent, reflecting continued operational efficiency alongside targeted investments in digital platforms, data, technology and human capital.
ADIB’s capital and liquidity positions remained well above regulatory requirements. The advances‑to‑stable‑funding ratio stood at 87.6 percent, while the eligible liquid assets ratio reached 13.6 percent, providing ample balance sheet flexibility to support future growth.
During the quarter, the bank continued to expand its customer base, adding approximately 66,000 new customers, supported by ongoing digital enhancements and product innovation. Management reiterated its focus on sustainable growth, value‑accretive financing opportunities and disciplined capital deployment as ADIB continues to execute against its long‑term strategic objectives.
