ADIB Posts $520 Million Profit Before Tax in Q1-25

In a record breaking start to 2025, Abu Dhabi Islamic Bank (ADIB) on Wednesday said that the net profit before tax increased by 18% y-o-y to $520 million reflecting a strong balance sheet growth, coupled with increased business momentum and a sustained customer growth.

The revenue for the first quarter of 2025 improved by 14% to $790 million compared with $680 million for the corresponding period last year.

This exceptional growth reflected broad-based performance across all key segments and was supported by an increase in both, income from financing activities and non-funding income. The strong business volumes along with continued strength in fee-based businesses, played a significant role in this improvement.

The bank’s total assets increased by 25% y-o-y to reach $66.43 billion. This growth was driven by financing growth in both retail and corporate banking, as well as an expansion in the investment portfolio, ADIB said.

Customer financing grew by 28% y-o-y, representing $8.98 billion increase compared with last year and $2.18 billion increase year to date. This reflects market share gains across key segments and wholesale banking closing landmark deals.

Even customer deposits rose by 25% y-o-y to $54.45 billion, compared with $43.56 billion during the same period in 2024. This growth maintained a healthy funding mix, with a 12% y-o-y growth in Current and Savings Accounts (CASA), which now comprise 69% of total deposits.

Provisions and Asset Quality

The bank said that the impairments decreased by 3% to $28.86 million during Q1 of 2025, translating to a cost of risk (CoR) of 37bps and the non-performing asset ratio improved to 3.7%, its lowest level since Q4 of 2016, due to active remediation of our legacy portfolio coupled with strong underwriting standards.

The provision coverage ratio, including collaterals, improved by 16.6 percentage points to 161.3% and excluding collaterals, it improved to 82.8% from 73.0% y-o-y, ADIB said.

ADIB Chairman Jawaan Awaidah Al Khaili said that the bank started the year with a strong performance, continuing the positive trajectory built over previous quarters. The results are a clear reflection of bank’s ability to grow profitably and execute the management’s strategy with discipline, he said.

“This outstanding performance was underpinned by strong revenue growth across all segments, improved cost efficiency and the best asset quality metrics we’ve seen to date,” he added.

ADIB Group CEO Mohamed Abdelbary said that building upon the achievements of 2024, the bank has successfully carried forward their momentum into the new year, establishing new benchmarks with an ROE of 29% and delivering a commendable performance across all their business segments. “The UAE market conditions remain resilient, and our franchise is well positioned to capture business opportunities,” he added.