Abu Dhabi Islamic Bank (ADIB) has reported another year of exceptional financial performance, delivering record earnings in 2025 on the back of strong balance sheet expansion, rising business momentum and sustained customer acquisition across key segments.

The bank recorded a year-on-year increase of 18% in net profit before tax, which reached a new high of AED8.1 billion ($2.205 billion) for the full year. 

ADIB also posted a robust performance in the fourth quarter of 2025, with net profit before tax rising 25% year on year to AED2.05 billion, reflecting continued growth across its core businesses.

Net profit after tax for the full year stood at AED7.1 billion, marking a 16% increase compared to 2024, while net profit after tax for the fourth quarter reached AED1.75 billion, up 20% year on year.

Total revenue for 2025 increased to AED12.3 billion from AED10.6 billion in 2024, representing a year-on-year growth of 16%. The strong performance was driven by broad-based expansion across all key business segments, supported by a diversified income base, higher business volumes and continued growth in fee-based activities.

OTHER HIGHLIGHTS

• Funded income rose to AED 7.6 billion in 2025, a 15% year-on-year increase compared to AED 6.6 billion last year, driven by higher financing volumes and the bank’s ability to generate sustainable returns, partially offsetting the impact of rate cuts since September 2024.

• The net profit margin reached 4.11%, reflecting strong business volumes, an efficient funding mix, and effective asset and liability management. 

• Non-funded income grew by 17% year on year to reach AED 4.8 billion in 2025, compared to AED 4.1 billion in 2024. This growth reflects continued strength in fee-generation revenues, which increased 16% from various product sales across retail and corporate, driven by increased customer activity and successful cross-sell efforts. Non-funded income now accounts for 39% of operating income, compared to 38% last year, underscoring the sustained focus on revenue diversification.

Expenses 

• ADIB achieved a strong improvement in the cost to income ratio, reaching 28.6% in 2025, a decline of 93 basis points compared to 29.6% for 2024, driven by higher revenues combined with sustained productivity management.

• Operating expenses for 2025 reached AED 3.5 billion, a 12% year-on-year increase driven by ongoing investments in our people, digital initiatives, and new technology. 

Provisions and asset quality 

• ADIB has maintained a disciplined approach to risk management, focusing on high credit quality and proactive risk controls.

• Impairments increased by 9% to AED 678 million during 2025, translating to a cost of risk of 44 basis points in line with our guidance.

• The non-performing asset ratio continued to improve to 2.8%, a record low for the bank, due to the remediation of our legacy portfolio and stringent underwriting standards.

• The provision coverage ratio, including collaterals, improved by 15.1 percentage points to 172.5%. The provision coverage ratio (excluding collaterals) further improved to 92.0% from 81.5% a year ago.

Balance sheet 

• Total assets increased by 24% year-on-year to reach AED 281 billion. This growth was driven by financing growth in both retail and corporate banking, as well as by an expansion of the investment portfolio.

• Customer financing grew by 26% year on year, representing an AED 38 billion increase compared to last year, reflecting market share gains across key segments and wholesale banking closing landmark deals.

• Customer deposits climbed 25% year on year to AED 229 billion, compared to AED 183 billion on 31 December 2024. This growth maintained a healthy funding mix, with a 14% year-on-year growth in current and savings accounts (CASA), which now comprise 64% of total deposits. 

Liquidity and capital

• ADIB maintained a robust capital position with a Common Equity Tier 1 ratio of 12.02% and a total capital adequacy ratio of 15.71%. 

• The bank’s liquidity position was healthy and within regulatory requirements, with advances in the stable funding ratio to 84.1% and the eligible liquid asset ratio to 19.4%.

• Total equity experienced a 14% increase year on year to AED 32 billion, led by growth in earnings.

• The return on equity (ROE) stood at 28.8% for 2025.

Dividends

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

Exceptional achievements

“2025 marked another year of exceptional achievements for the group, as we continued to build momentum across all key segments, delivering record profitability, robust balance sheet growth and industry-leading returns of 29%," said Jawaan Awaidah Al Khaili, ADIB Chairman. "Our results reflect disciplined execution across the franchise, continued strength in customer activities and ongoing investments in innovative products, digital platforms, and AI, supported by the UAE’s thriving economy."

"As ADIB advances its Vision 2035, we remain committed to building a stronger, more diversified, and future-ready Islamic financial institution. Our disciplined focus on capital optimisation and revenue diversification will continue to drive sustainable growth and long-term value for our shareholders as we strengthen our unique market position,” he said.

“We reported another year of robust performance. Every business line performed exceptionally well, driven by heightened client activity and increased demand for financing. The steady growth in both funded and non-funded income underscores the strength of our diversified revenue streams and the effectiveness of our enhanced cross-sell initiatives,” said Mohamed Abdelbary, Group Chief Executive Officer (GCEO).

Since the launch of our five‑year plan in 2020, ADIB has delivered strong and consistent growth across all key metrics, achieving and exceeding all financial and operational target set at the start of the cycle. Profitability increased at a CAGR of 18%, the balance sheet expanded at a CAGR of 17% and return on equity improved significantly to 29%, he said. 

"Building on this momentum, ADIB is now entering a new strategic phase guided by our Vision 2035, a long‑term roadmap to scale our franchise, deepen our leadership in Islamic banking, and build a more diversified, technology‑enabled, customer‑centric organisation. The strategy is anchored on leveraging Gen AI and emerging technologies, revolutionising customer experience, and advancing sustainability across the business—while remaining firmly rooted in our values," he added. - TradeArabia News Service