24/04/2026 03:36 AST
ADCB, a leading UAE banking group, has delivered record profit before tax of AED3.781 billion in Q1'26, up 30% year on year, extending profit growth track record to 19 consecutive quarters.
Strong first quarter performance was delivered by the effective implementation of strategy, resilient business model and operational continuity through the period, it said.
Net profit after tax of AED3.361 billion translated to a RoAE of 16.3%.
Increasingly diversified revenue streams drove 18% YoY and 7% QoQ growth in operating income, with higher contribution from non-interest income, which was up 36% YoY and 27% QoQ, on higher fee and trading income.
The bank achieved lowest quarterly cost to income ratio of 25.6% resulting from top-line growth and sustained efficiencies, with operating expenses 8% lower QoQ.
It saw a significant increase in net loans to customers of AED20 billion during the quarter to AED426 billion, up 5% QoQ and 18% YoY, characterised by a high-quality, well-diversified portfolio.
ADCB franchise drove customer deposit growth of AED23 billion in the quarter to AED523 billion, up 5% QoQ and 18% YoY, with net inflow of AED14 billion CASA (current and savings account) deposits inQ1'26, supporting a favourable funding mix.
Strong capital and liquidity position, with CET1 ratio of 13.82% and liquidity coverage ratio (LCR) of 124.2%, underpinning a resilient balance sheet and supporting the Bank's ability to navigate an evolving operating environment and capitalise on the UAE's long-term fundamentals.
Income statement highlights
Profit before tax: AED3.781 billion (up 30% YoY)
Net profit after tax : AED3.361 billion
Return on average equity (RoAE) post tax1: 16.3%
Operating income: AED5.934 billion (up 18% YoY)
Non-interest income: AED2.196 billion (up 36% YoY)
Cost-to-income ratio: 25.6% (improvement of 360 bps YoY)
Balance sheet highlights
Total assets: AED809 billion (up 19% YoY and 5% QoQ)
Net loans to customers: AED426 billion (up 18% YoY and 5% QoQ)
Customer deposits: AED523 billion (up 18% YoY and 5% QoQ)
CET1 ratio: 13.82% (vs 12.59% in March'25 and 13.79% in December'25)
Liquidity coverage ratio (LCR): 124.2% (vs 131.3% in December'25)
Non-performing loan (NPL) ratio: 1.76% (vs 2.24% in March'25 and 1.83% in December'25)
Ala'a Eraiqat, Group Chief Executive Officer of ADCB, said: "Guided by the UAE's leadership, the country has demonstrated resilience, supporting continuity of economic activity, and reinforcing confidence in long-term stability. In this context, ADCB has maintained consistent operational delivery, with uninterrupted branch operations and high service standards across all customer touchpoints. The Bank also introduced targeted measures for individuals providing essential frontline services in appreciation of their invaluable contributions. In parallel, the Bank launched a suite of banking solutions for corporates designed to strengthen financial resilience and support business continuity.
"We have entered the second year of our five-year strategy with a clear focus on transforming ADCB into a technology-driven organisation. In the first quarter, the Bank delivered a strong performance, with profit before tax increasing by 30% year on year to a record AED3.781 billion, marking 19 consecutive quarters of profit growth.
"This sustained performance, together with the Bank's strong capital and liquidity position, provides a platform for the Bank to continue its growth trajectory. The UAE's long-term fundamentals are well established, and ADCB remains focused on delivering a high-quality customer experience and enabling strategic investment in priority sectors across the economy."
Deepak Khullar, Group Chief Financial Officer of ADCB, said: "ADCB's strong performance in the first quarter of 2026 was driven by growth across all core business segments. A combination of a diversified revenue mix and enhanced efficiency continues to support a high-quality and resilient earnings base. Non-interest income increased significantly to account for 37% of total operating income, up from 32% a year earlier, while the cost-to-income ratio improved to a record low of 25.6%, driven by strong top-line growth, productivity gains and disciplined cost management."
"The bank delivered robust balance sheet growth during the quarter. Net loans increased by AED20 billion, or 5% sequentially, with broad-based expansion across key sectors and AED10 billion of gross loans extended to government-related entities. The credit pipeline remains solid providing clear visibility on future loan growth. Strong confidence in the ADCB franchise drove an AED23 billion net inflow of customer deposits during the quarter, up 5% sequentially. This included AED 14 billion of current and savings account (CASA) deposits, representing 47% of total deposits.
"The Bank remains resilient, underpinned by its strong capital and liquidity position. To date, ADCB has not utilised any of the facilities prudently made available by the UAE Central Bank under its 'Proactive Financial Institution Resilience Package'. We remain confident in our ability to navigate an evolving operating environment and are on track to deliver against our short and medium-term financial targets."
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