Abu Dhabi Islamic Bank (ADIB) Q1 2025 earnings summary

Executive summary

• Achieved record net income before tax of AED 1.9bn in 1Q 2025, up 18% year-over-year and sequentially, with ROE reaching 28.8% driven by strong revenue momentum and client activity.

• Net profit after tax for the three months ended 31 March 2025 reached AED 1,710 million, up from AED 1,451 million year-over-year.

• Revenue rose 14% YoY to AED 2.9bn, reflecting higher business volumes and improved revenue mix, especially from non-funded income.

• Earnings per share rose to AED 0.417 from AED 0.346 year-over-year.

• Customer base expanded by 67,000 in 1Q 2025; total assets surpassed AED 244bn, with customer financing up 28% YoY and deposits up 25% YoY, crossing AED 200bn.

Financial highlights

• Net income before tax: AED 1.9bn (+18% YoY); net income after tax: AED 1.71bn (+18% YoY).

• Revenues: AED 2.9bn (+14% YoY); operating income: AED 4,117 million (+17.9% YoY); expenses: AED 0.8bn (+8% YoY).

• Total assets: AED 243.5bn (+25% YoY); gross customer financing: AED 154.5bn (+27% YoY); deposits: AED 200.1bn (+25% YoY).

• Cost of risk at 0.37%, with provisions at AED 106mn (-3% YoY); net impairment charges for the quarter were AED 105.6 million, down from AED 109.1 million YoY.

• Cash dividends of AED 3,030 million (83.43% of paid-up capital) were paid in 2025 for the prior year.

Outlook and guidance

• Customer financing growth for FY 2025 guided at 12–14%, with 1Q 2025 actual at 27% YoY.

• Net profit margin expected to stabilize between 4% and 4.25% for FY 2025.

• Cost of risk projected to remain healthy at 0.40–0.60% due to strong asset quality.

• Cost/income ratio expected to stay below 30%; ROE guidance above 25%.

• Management notes that results for the three months ended 31 March 2025 are not necessarily indicative of the full year ending 31 December 2025.