ADCB Reports Record Q1 2026 Profit of AED 3.781 Billion, Up 30% Year-on-Year

ADCB Q1 2026 earnings delivered record profit before tax of AED 3.781 billion in the first quarter of 2026, representing a 30 percent increase year-on-year and extending its profit growth streak to 19 consecutive quarters. Net profit after tax reached AED 3.361 billion, translating to a return on average equity of 16.3 percent.

The bank’s strong performance reflects effective strategy implementation and a resilient business model. Operating income grew 18 percent year-on-year to AED 5.934 billion, driven by increasingly diversified revenue streams. Non-interest income surged 36 percent year-on-year and 27 percent quarter-on-quarter to AED 2.196 billion, now representing 37 percent of total operating income compared to 32 percent a year earlier.

Cost Efficiency and Balance Sheet Strength

ADCB achieved its lowest quarterly cost-to-income ratio of 25.6 percent, improving 360 basis points year-on-year. Operating expenses declined 8 percent quarter-on-quarter to AED 1.519 billion, reflecting sustained operational efficiencies and disciplined cost management. The bank’s balance sheet expanded significantly, with total assets reaching AED 809 billion, up 19 percent year-on-year and 5 percent quarter-on-quarter.

Net loans to customers increased AED 20 billion during the quarter to AED 426 billion, representing 5 percent quarter-on-quarter growth and 18 percent year-on-year expansion. The loan portfolio remained well-diversified across key economic sectors, including government-related entities, financial institutions, trading, and manufacturing. Customer deposits grew AED 23 billion to AED 523 billion, with current and savings account deposits contributing AED 14 billion of net inflow.

Capital Position and Asset Quality

The bank maintained a strong capital and liquidity position, with a Common Equity Tier 1 ratio of 13.82 percent and a liquidity coverage ratio of 124.2 percent. Asset quality continued to improve, with the non-performing loan ratio declining to 1.76 percent from 2.24 percent a year earlier. Provision coverage increased to 151.8 percent, while total coverage including collateral reached 256 percent.

Ala’a Eraiqat, Group Chief Executive Officer of ADCB, said: “ADCB has maintained consistent operational delivery with uninterrupted branch operations and high service standards across all customer touchpoints. We have entered the second year of our five-year strategy with a clear focus on transforming ADCB into a technology-driven organisation. 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.”

Business Segment Performance

Corporate banking delivered strong loan growth across key sectors, supported by expanded client relationships and capital markets strength. ADCB completed a landmark USD 3.5 billion dual-tranche SEC-registered bond issuance for the Republic of Türkiye, marking the first international conventional bond mandate awarded to a GCC bank. The bank added 289 new banking relationships during the quarter.

The retail franchise attracted over 57,000 new customers through targeted acquisition strategies, with digital origination of personal loans increasing year-on-year. The bank sourced over 52,000 new cards in the quarter, with acquisition focused on targeted customer segments. Private banking and wealth management delivered strong growth, with the client base increasing 7 percent during the quarter and assets under management within investment and advisory solutions rising 7 percent.

Technology and Sustainability Initiatives

ADCB made significant progress embedding artificial intelligence across the organisation during Q1 2026. The bank expanded AI use cases into new business areas and began scaling selected early pilots toward deployment. Previously introduced use cases focused on enhancing productivity are being rolled out at larger scale, including an internal enterprise knowledge platform, AI-enabled software engineering, and AI assistants for board and senior management members.

The bank published its 2025 sustainability disclosures in an Integrated Report informed by IFRS S1 and S2 standards. Sustainable finance commitments reached AED 71.9 billion as of December 31, 2025, representing 58 percent progress toward the 2030 target and exceeding the interim 2025 target of AED 50 billion. ADCB earned the Regional ESG Leader Badge from Sustainalytics in 2026, while its FTSE Russell ESG score increased to 4.0 from 3.7.

Subsidiary Performance and Outlook

ADCB Egypt reported net profit of EGP 1.1 billion in Q1 2026 with a return on equity of 24 percent. Loans and customer deposits increased 28 percent and 27 percent year-on-year respectively to EGP 77.6 billion and EGP 158 billion. The subsidiary introduced Apple Pay and achieved 31 percent year-on-year growth in digital subscribers and active users, with digital transactions exceeding 500,000 in the quarter.

Al Hilal Bank welcomed over 15,000 new customers during the quarter through fully digital onboarding, with 90 percent of credit card applications approved through straight-through processing. The bank consolidated debit and credit cards onto a single Mastercard platform and expanded partnerships with leading UAE retailers. ADCB reiterated its full-year 2026 guidance, targeting a CET1 ratio above 12 percent, cost of risk below 60 basis points, and return on equity above 15 percent.