Abu Dhabi Commercial Bank's nine-month profit rises 27% to 10.296 billion dirhams
Key Facts
Abu Dhabi Commercial Bank reported a 27% rise in net profit after tax to 10.296 billion dirhams for the first nine months of 2026 compared with the same period a year earlier, according to its official earnings statement. Profit growth was driven by higher operating income and lower impairment charges, despite continued pressure on the net interest margin. Profit before tax reached a record 11.670 billion dirhams in the period ended September, up 28% year on year. For the third quarter of 2026, net profit after tax stood at 3.559 billion dirhams. Quarterly profit rose 15% from the corresponding quarter a year earlier, a slower pace than the growth recorded for the year to date.
The interim financial statements showed operating income for the first nine months of 2026 rose to 18,306 million dirhams, compared with 16,616 million dirhams in the corresponding period of 2025. Non-interest income rose 21% year on year, according to the investor earnings presentation. It reached 6,964 million dirhams, compared with 5,761 million dirhams a year earlier. The bank attributed revenue diversification to growth in "fees and trading income", according to the earnings statement, while saying increased lending supported business growth across a range of economic sectors. Revenue grew faster than operating expenses during the period, according to the investor presentation. The cost-to-income ratio consequently improved by 40 basis points year on year to 27.3%.
The net interest margin, however, fell to 2.16% in the third quarter of 2026, according to the investor earnings presentation. The margin declined by 29 basis points from the same quarter a year earlier and by 4 basis points from the preceding quarter. The bank attributed the pressure on the margin to earlier interest rate cuts and an increased share of term deposits in its funding mix. Impairment charges recorded in the first nine months of 2026 fell to 1,646 million dirhams, according to the interim financial statements. Those charges had stood at 2,920 million dirhams in the corresponding period of 2025. By the end of September 2026, the non-performing loan ratio had fallen to a record low of 1.60%, according to the investor presentation.
The bank's business expansion extended to its lending portfolio, with net loans and advances to customers reaching 468,987 million dirhams at the end of September 2026, according to the interim financial statements. That compares with 403,031 million dirhams at the end of December 2025. Alongside the increase in loans, customer deposits rose to 558,155 million dirhams at the end of September. Deposits had stood at 499,775 million dirhams at the end of the previous year. Customer deposits remained above net loans and advances, with both increasing during the period. The bank's total assets reached 889,991 million dirhams at the end of September 2026, compared with 773,654 million dirhams at the end of December 2025.
The latest performance follows the bank's net profit of 11.445 billion dirhams for the full year 2025, according to the chairman's letter in the annual report. The current expansion was preceded by the completion of a 6.1 billion dirham capital increase through a rights issue. The bank said in its previous year's earnings statement that the issue was completed after the subscription period closed on 4 December 2025. As part of its strategic direction outlined in the annual report, the bank aims to "embed artificial intelligence across all its functions". For 2026 and its five-year strategy, the bank lowered its cost-of-risk guidance to below 50 basis points, according to the investor earnings presentation. The new guidance replaces the previous ceiling of below 60 basis points.