ADIB records higher nine-month earnings as financing expands

Abu Dhabi Islamic Bank reported a 6 per cent rise in nine-month profit before tax to Dh6.4 billion, supported by expanding customer financing, higher income and improving credit quality.

Net profit after tax reached Dh5.6 billion in the nine months ended 30 September 2026, also increasing 6 per cent from a year earlier. Revenue rose 6 per cent to Dh9.7 billion, while the bank reported a return on equity of 28 per cent.

Gross customer financing climbed 25 per cent year on year to Dh218 billion, adding Dh43 billion over 12 months. The portfolio expanded by Dh33 billion, or 18 per cent, since December, with growth spanning retail and wholesale banking. The bank said financing expansion was running ahead of its full-year guidance.

Customer deposits increased 17 per cent from a year earlier to Dh259 billion, including Dh30 billion added during 2026. Total assets reached Dh318 billion at the end of September, an 18 per cent annual increase. ADIB also attracted more than 200,000 new customers during the nine months.

The stronger balance sheet was accompanied by improved asset quality. Non-performing assets declined to 2 per cent of the financing portfolio from 3.3 per cent a year earlier, a level the bank described as a record low. Impairment charges dropped 12 per cent to Dh451 million, while the cost of risk stood at 30 basis points.

Provision coverage excluding collateral rose to 114.3 per cent from 89.3 per cent, indicating a larger cushion against impaired financing. Including collateral, coverage stood at 183.3 per cent. The improvement came despite rapid growth in customer financing, an important measure of the bank’s ability to expand without a corresponding deterioration in its loan book.

Funded income advanced 11 per cent to Dh6.1 billion as financing volumes increased. The net profit margin stood at 3.64 per cent. Non-funded income was broadly unchanged at Dh3.6 billion and accounted for approximately 37 per cent of total revenue, reflecting contributions from fees and other banking activities.

Net fee and commission income reached Dh591 million in the third quarter, rising 9 per cent year on year, supported partly by card activity and processing fees. Operating expenses increased 9 per cent to Dh2.8 billion as the lender invested in technology, employees and business expansion. Its cost-to-income ratio stood at 29.1 per cent.

The results come ahead of a planned Dh1.75 billion rights issue intended to strengthen ADIB’s capital base and finance expansion under its Vision 2035 strategy. Shareholders approved the capital increase on 6 October, and the bank subsequently announced the timetable after securing the required regulatory approvals.

The transaction involves issuing up to 106.383 million new ordinary shares at Dh16.45 each, comprising Dh1 in nominal value and Dh15.45 as a premium. Eligible shareholders will be determined on 2 November, with rights trading scheduled for 4 to 16 November and subscriptions open from 10 to 24 November. Trading in the new shares is scheduled to begin on 18 December.

ADIB’s common equity tier one capital ratio stood at 12.4 per cent at the end of September. Total equity rose 11 per cent to Dh34 billion. The proposed share issue is designed to provide additional capacity for financing growth while supporting the bank’s regulatory capital position.

Chairman Jawaan Awaidah Al Khaili said the combination of financing growth, customer acquisition and stronger asset quality supported the next phase of the bank’s Vision 2035 programme. Group chief executive Mohamed Abdelbary pointed to continued business momentum and a healthy pipeline across retail and wholesale operations.

The capital raising programme will increase the bank’s issued share capital from Dh3.632 billion to approximately Dh3.738 billion if fully subscribed. The new shares will rank alongside existing ordinary shares, while the tradable rights structure allows eligible investors to subscribe or sell their entitlements during the designated trading window. The bank has positioned the transaction as an important component of its long-term expansion strategy.

Current and savings accounts represented 60 per cent of total customer deposits, with balances rising 2 per cent year on year. This funding mix provides a substantial source of comparatively low-cost deposits as the bank expands financing activity.

ADIB also reported that sustainable finance mobilisation had reached Dh23.3 billion by September, against its target of Dh60 billion by 2030. Earnings per share for the nine-month period increased 5 per cent to Dh1.38.