ADCB and United Arab Bank see jump in 3Q net income

ABU DHABI COMMERCIAL BANK-

Abu Dhabi Commercial Bank (ADCB) reported a 29% y-o-y increase in net income to AED 3.1 bn in 3Q 2025, according to its financials (pdf) and a separate earnings release (pdf). Operating income rose 25% y-o-y to AED 5.9 bn, supported by a 21% jump in net interest income on the back of higher volumes to AED 3.8 bn and a 32% increase in non-interest income to AED 2.1 bn.

For 9M 2025, net income rose 18% y-o-y to AED 8.1 bn, while operating income grew 19% to AED 16.6 bn. Non-interest income climbed 34% y-o-y to AED 5.8 bn, driven by higher fees, trading income, and gains from loan sales, as well as continued cost discipline and robust core operations. Total assets increased 17% y-o-y to AED 744.2 bn.

REMEMBER- ADCB has been cleaning up its balance sheet: The lender plans to lift its Common Equity Tier 1 ratio by around 120 bps through a AED 6.1 bn rights issue — to which sovereign wealth fund Mubadala intends to fully subscribe — and recently sold USD 1.4 bn in distressed loans to Davidson Kempner. It is also reportedly in talks with advisors to undertake Significant Risk Transfers — transactions that would help offload credit risk ahead of higher regulatory buffers expected next year.

Looking ahead, ADCB said it is embedding artificial intelligence across its operations under a new transformation program (pdf) aimed at unlocking over AED 4 bn in value. The initiative, led by a newly appointed chief AI officer, will integrate more than 150 AI use cases across the bank’s business lines to support its medium-term goal of doubling net income to AED 20 bn within five years.

UNITED ARAB BANK-

United Arab Bank (UAB) reported a 46% y-o-y increase in net income to AED 108 mn in 3Q 2025, according to its financials (pdf) and earnings release (pdf). Operating income for the quarter rose 36% y-o-y to AED 206.8 mn, driven by higher net interest and non-interest income, and supported by continued recoveries and cost control.

For 9M 2025, net income climbed 49% y-o-y to AED 315.6 mn, while total income rose 28% to AED 580.4 mn. Loans and Islamic financing grew 31% y-o-y to AED 14.1 bn, and total assets reached AED 24.5 bn, up 22% y-o-y. The lender said profitability was bolstered by higher asset yields, recoveries, and improved efficiency, with its cost-to-income ratio narrowing to 46.2%.

REMEMBER- UAB also completed a fully subscribed AED 1.03 bn rights issue during the quarter, boosting its capital adequacy ratio to 22.8%.