Abu Dhabi Commercial Bank, headquartered in Abu Dhabi, UAE, is mainly engaged in retail, commercial and Islamic banking, providing products and services provided to over 2.3m customers. As of 2024, ADCB is the third largest bank in the UAE by assets, with a total asset value of AED639bn. The bank also has a selective Middle East presence, with 46 branches in the UAE and 50 in Egypt.

ADCB segments comprise Corporate and Investment Banking, contributing 39% of operating income as of FY24, Retail Banking 27%, Investment and Treasury 25%, Private Banking 8% and Others 1%.

Financial performance trending high overall

Net interest income experienced a CAGR of 14.3% over the last three period from 2021 to 2023, rising from AED8.9bn in 2021 to AED13.2bn in 2024. This growth was driven by 23.1% expansion in net interest income from the Investments and treasury division and a 16.1% growth from the corporate and Investment Banking division.

Additionally, the net interest margin expanded from 2.43% in 2021 to 2.58% in 2024. During this three-year periods, non-interest income also increased from AED3.2bn in 2021 to AED6.2bn in 2024, supported by higher net fees and commission income. Consequently, the net income to the company rose from AED5.3bn in 2021 to AED9.4bn in 2024, demonstrating a positive overall trend.

Furthermore, as of 2024, its balance sheet stands at AED653bn, up from AED440bn in 2021, driven by a CAGR of 14% in deposits and 10% in net loans. Deposits stand at AED421bn as of 2024, while net loans stand at AED351bn. ADCB also improved its asset quality, reducing the NPL ratio from 5.41% in 2021 to 3.04% in 2024, the lowest level since 2020. Also, the bank’s provision coverage ratio stands at 110% as of 2024, up from 93% in 2021.

In comparison, the local peer, First Abu Dhabi Bank, enjoyed a net interest income growth of 24.6% CAGR over the last three-year period, demonstrating a stronger overall top-line performance. However, its net interest margin was lower at 1.8% in 2023, and its NPL ratio stands at 3.9%, higher than ADCB.

In addition, ADCB has consistently paid dividends since 2015 and declared a dividend of AED0.59 per share in 2024, implying a dividend yield of 5% at current prices and a payout ratio of 46%. Moreover, analysts project an average dividend yield of 5% to continue over the next three years, making it an attractive dividend play.

New five-year strategy

On its 40th anniversary, ADCB has launched a visionary growth strategy aligned with the UAE's economic goals. The strategy aims to significantly increase the bank's scale and reach. In the new five-year plan ADCB targets doubling its profit to AED20bn by 2030, achieving a CAGR of around 20%. The bank also aims to increase its total dividend payout to approximately AED25bn.

Additionally, ADCB aims to deliver an annual ROE exceeding 15% while maintaining healthy regulatory ratios and adequate capital for future growth.

Thriving region creating growth prospects

ADCB is well-positioned for long-term growth, supported by strong macroeconomic fundamentals in the UAE. The country's positive business and consumer confidence, coupled with a comfortable oil price level and a forecasted increase in output in 2025, provide a solid foundation for the bank's expansion. The UAE's PMI data remains in strongly expansionary territory in 2024, reflecting a supportive domestic demand backdrop.

Additionally, the externally facing service sector is performing robustly, and overall global growth remains relatively resilient. In the UAE, gross deposits have continued to outpace credit growth in annual terms, supporting system-wide liquidity. This trend, along with disciplined cost management and enhanced efficiencies, places ADCB in a strong position to achieve the favorable consensus noted by analysts.

Strong analyst ratings

The stock was up over 10% since the announcement of full-year results on November 27, 2025, and is trading at an all-time high of AED 11.8. The stock has also given a return of over 33% in the last 12 months. Despite such a run-up, the stock is currently trading at a P/B multiple of 1.2x, which is below the global peer average of 1.4x but slightly ahead of the 10-year historical average of 1.1x. Local peer First Abu Dhabi Bank is trading at a P/B multiple of 1.3x, slightly above ADCB.

Out of the 15 analysts covering the stock, 7 have given a “Buy” rating and 4 have given an “Outperform” rating, with an average target price of AED12.43, suggesting an upside potential of 4% from current prices.

The growing prospects of the UAE economy and its progressive outlook portray the bank as being in a robust position for the long run. A strong pipeline, disciplined cost management, and enhanced efficiencies all place the bank in a good position to achieve the favorable consensus noted by analysts. However, adverse market movements, both domestically and internationally, can negatively impact the firm’s performance. Moreover, geopolitical risks could also affect consumer confidence, which could subsequently harm the top-line performance