1Q 2025 Earnings Presentation
Analyst & Investor Conference Call
ADIB IR Website
Abu Dhabi, 24 April 2025
IR App Download link:
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Key Highlights
1Q 2025 Earnings Presentation
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Financial highlights
A record-breaking start to 2025 driven by strategic execution and strong client activity
Record 1Q 2025 performance with net income before tax of AED 1.9bn up 18% YoY and up 18% | 1Q'25 Net Income growth YoY | |
+18% +18% | ||
compared to Q4 2024 driven by accelerated revenue momentum, translating to ROE of 28.8% | ||
Before tax | After tax | |
Revenue up 14% YoY to AED 2.9bn reflecting strong business volumes and improved revenue mix with higher non-funded income contribution
Cost / Income ratio dropped to 28.9% an improvement of 151bps YoY helped by strong revenue growth and continued cost discipline
ADIB strong franchise continued to attract new customers with 67,000 joining ADIB in 1Q 2025
Total assets crossed AED 244bn driven by 28% growth in customer financing that were efficiently funded by YoY deposits growth of 25% which crossed AED 200bn milestone
Maintained robust fundamentals through solid asset quality with an improvement in the NPA ratio to reach 3.7% lowest since 4Q 2016 and increased coverage ratio to 83%
1Q'25 Cost / Income ratio
28.9%
1Q'25 ROE
28.8%
1Q'25 Net financing growth YoY
+28%
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Outlook and Guidance
UAE economic resilience, the solid financial & strategic foundations drive promising outlook for the rest of 2025
Market Outlook
Resilient growth reflecting strong momentum in non-oil sector
Real GDP growth (%)
3.4%3.9%4.7%
2023 | 2024 | 2025 |
Oil prices adjusting to market dynamics but remain supportive
Brent Price / Barrel (avg) (USD)
82 | 81 | 68 |
2023 | 2024 | 2025 |
Moderate inflation supporting economic stability & consumer confidence
UAE Inflation (avg) (%)
1.6%1.7%2.0%
2023 | 2024 | 2025 |
Stable government spending supporting UAE's long term diversification plan
Government expenditure % of GDP (%)
26%27%27%
2023 | 2024 | 2025 |
Management Guidance | 1Q 2025 Actual | FY 2025 Guidance | ||
Gross Financing Growth | ||||
Customer financing momentum in both retail | 27% YoY | 12% to 14% | ||
and corporate expected to remain robust, | ||||
supported by a resilient economic backdrop | ||||
Net Profit Margin | 4.31% | 4% to 4.25% | ||
NPM to stabilise in 4% to 4.25% range for FY | ||||
2025 | ||||
Cost of Risk | ||||
CoR to remain at healthy level due to better asset | 0.37% | 0.40% to 0.60% | ||
quality and effective risk management supported by | ||||
continuous build-up of provisioning | ||||
Cost to Income Ratio | ||||
Opex growth to support business expansion | 28.9% | < 30% | ||
moderated by disciplined management and | ||||
digital efficiencies with overall positive "jaws" | ||||
Return on Equity | ||||
Solid expected profit growth and focus on | 28.8% | > 25% | ||
capital-efficient income growth expected to | ||||
drive continued superior returns
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1 | |
Financial Performance | 2 |
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3 | |
1Q 2025 Earnings Presentation | 5 |
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Financial Performance Highlights
Record profitability in 1Q 2025 driven by growth across core businesses in line with strategy to increase market share
Strong YoY Growth in Profitability | Robust Balance Sheet Growth YoY | Strong Capital Position and Return YoY | ||
1.9bn244bn 16.2%
Net Income before tax | Total Assets | CAR |
+18% | +25% | -93bps |
2.9bn155bn28.8%
Revenues | Gross Customer Financing | Return on Equity |
+14% | +27% | +182bps |
0.8bn 200bn 28.9%
Expenses | Deposits | Cost to Income Ratio | |
+8 | +25% | -151bps | |
% | |||
All figures in AED | 7 |
Key financial metrics - 1Q 2025 vs 1Q 2024
Record set of results with ROE reaching 28.8% driven strong commercial momentum, diversified revenue streams and cost discipline
1Q 2024 | 1Q 2025 | 1Q 2025 vs 1Q 2024 | ||||
Amount | % | |||||
Profitability (AED mn) | Revenue | 2,517 | 2,871 | 354 | 14% | |
Expenses | -765 | -830 | -64 | 8% | ||
Margin | 1,752 | 2,042 | 290 | 17% | ||
Cost of Credit | -109 | -106 | 4 | -3% | ||
Net Income before Tax | 1,643 | 1,936 | 293 | 18% | ||
Tax | -192 | -226 | -34 | 18% | ||
Net Income after Tax | 1,451 | 1,710 | 259 | 18% | ||
Balance Sheet (AED bn) | Total Assets | 194.6 | 243.5 | 48.9 | 25% | |
Gross Financing Assets | 121.4 | 154.5 | 33.1 | 27% | ||
Risk Weighted Assets | 142.3 | 169.1 | 26.8 | 19% | ||
Customer Deposits | 160.3 | 200.1 | 39.8 | 25% | ||
Investments | 26.3 | 32.2 | 5.9 | 22% | ||
Key Ratios | Cost to Income | 30.4% | 28.9% | -1.51% | ||
Return on Equity | 27.0% | 28.8% | 1.82% | |||
NPA Coverage | 73.0% | 82.8% | 9.8% | |||
NPA | 5.5% | 3.7% | -1.7% | |||
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Income Statement
Strong YoY net income growth of 18% driven by strong revenue momentum, revenue diversification and balance sheet growth
Net Income (AEDmn)
Net Income before Tax Movement YoY (AEDmn)
1,777
1,643
1,578 |
1,451
1,936
1,804
1,645
1,710 1,605
1,467
1,643 61
+18%
293 | 4 | 1,936 |
-64 |
1Q 24 | 2Q 24 | 3Q 24 | 4Q 24 | 1Q 25 |
Net income before tax | Net income after tax | |||
Net income | Funded income | Non-funded income | Expenses | Impairments | Net income |
before tax | before tax | ||||
1Q 24 | 1Q 25 | ||||
+4% | +35% | +8% | -3% |
Income Statement Highlights
AED (mn) | 1Q 2025 | 1Q 2024 | Δ% | 4Q 2024 | Δ% |
Funded income | 1,752 | 1,690 | +4% | 1,663 | +5% |
Non-funded income | 1,120 | 827 | +35% | 974 | +15% |
Revenues | 2,871 | 2,517 | +14% | 2,637 | +9% |
Operating expenses | (830) | (765) | +8% | (821) | +1% |
Provision for impairment | (106) | (109) | -3% | (172) | -39% |
Net Income before tax | 1,936 | 1,643 | +18% | 1,645 | +18 |
Net Income after tax | 1,710 | 1,451 | +18% | 1,467 | +17% |
Revenue Movement by Segment YoY (AEDmn)
+14% | |||||||
2,517 | 56 | 102 | 1 | 76 | 41 | 82 | 2,871 |
-3 |
Revenue Retail | Wholesale | Private | Treasury | Real estate | Associates | Other Revenue |
1Q 24 | and subs | 1Q 25 | ||||
+4% | +26% | +1% | +123% | -11% | +10% | +34% |
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Funded Income
Stabilized margins, strong volume growth and disciplined balance sheet management, drove a 4% increase in funded income
Net Profit Margin (%) | 7.47% | |
7.41% | 7.40% | |
7.37% | ||
4.60% | 4.46% | 4.35% |
4.67% | ||
2.49% | 2.60% | 2.63% |
2.43% |
Net Profit Margin Movement YoY (%)
7.37%
-37bps | ||||
4.67% | 0.11% | 0.05% | 4.31% | |
4.31% | ||||
2.58% | -0.05% | -0.33% | -0.14% | |
1Q 24 | 1H 24 | 9M 24 | FY 24 | 1Q 25 | Net profit | Retail financing Wholesale | Interbank Cost of funding | Other | Net profit | |||
Gross margin | Net profit margin | Cost of funding | margin | financing | placements | margin | ||||||
1Q 24 | 1Q 25 | |||||||||||
Funded Income Composition (AEDmn)
Net Revenue from Funding Activities Movement YoY (AEDmn)
Associates and subs 20.1%
352mn
Treasury | 1Q 25 | |
1,752mn | ||
-20.9% | ||
-367mn |
Other 12.9% 226mn
Retail 67.3% 1,178mn
170
1,690
+4%
55
1,752
-163 -1
Private |
3.5% |
62mn |
Wholesale 17.1% 300mn
Funded income | Retail | Wholesale | Cost of funding | Others | Funded income |
1Q 24 | 1Q 25 | ||||
+17% | +10% | +28% | -0% |
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