Abu Dhabi Islamic Bank Reports Record Profits for 2025, Recommends AED 3.5 Billion Cash Dividends

Abu Dhabi | EcoPulse24

Abu Dhabi Islamic Bank (ADIB) posted exceptional financial results for 2025, recording pre-tax profits of AED 8.1 billion, an 18% year-on-year increase. Net profit after tax reached AED 7.1 billion, up 16% from 2024, driven by strong operational momentum, balanced revenue growth, and an expanding customer base.

The Board recommended a final cash dividend of 97 fils per share for 2025, totaling AED 3.5 billion - 50% of net profits and AED 495 million higher than the previous distribution - subject to shareholder approval.

Strong Fourth Quarter Growth

In Q4 2025, pre-tax profits rose 25% year-on-year to AED 2.05 billion, with net profit after tax at AED 1.75 billion, a 20% increase, reflecting accelerating performance at year-end.

Revenue and Operational Efficiency

Total revenues reached AED 12.3 billion in 2025, up 16% year-on-year. Financing income grew to AED 7.6 billion (+15%), while non-financing income rose to AED 4.8 billion (+17%), accounting for 39% of total operating income.

Operating expenses were AED 3.5 billion, up 12%, contributing to an improved cost-to-income ratio of 28.6%, down 93 basis points, indicating operational efficiency despite ongoing investments in talent and digital initiatives.

Asset Quality and Liquidity

ADIB continued to enhance asset quality, with non-performing assets declining to 2.8%, a record low; coverage ratio improved to 92% (172.5% including collateral). Provisions for financing and investment losses were AED 678 million, with a stable risk cost of 0.44%.

Balance Sheet and Capital Strength

Total assets rose to AED 281 billion, up 24% year-on-year; customer financing grew to AED 186 billion (+26%), and customer deposits reached AED 229 billion (+25%), with current and savings accounts representing 64% of total deposits.

The bank maintained a robust capital base, with a capital adequacy ratio of 15.71% and return on equity of 28.8%, among the highest in the sector.

Customer Base Expansion and Digital Transformation

In 2025, approximately 283,000 new customers joined ADIB. Continued investment in digital transformation led to 80% of customers being digitally active, with the bank’s app topping UAE app store rankings.

Management Statements

Jouan Awad Saheel Al Khaili, Chairman, stated that 2025 marked a pivotal year of record profitability and growth, signaling a new phase under ADIB Vision 2035. Mohamed Abdelbary, Group CEO, added that the strong performance reflects the resilience of the business model and revenue diversification, with ongoing commitments to efficiency and risk management.