Earnings call transcript: ADCB posts record Q3 2026 profit as margin pressure lingers

Abu Dhabi Commercial Bank (ADCB) reported record third-quarter and nine-month profits for 2026, marking 21 consecutive quarters of earnings growth. The bank's net profit after tax reached AED 10.3 billion for the first nine months, a 27% increase from the previous year, while third-quarter profit grew by 15% to AED 3.56 billion.

Notably, the bank reduced its cost of risk guidance to below 50 basis points, indicating improved asset quality. Revenue from non-interest sources rose by 21% in the first nine months, accounting for 38% of operating income. Loan growth accelerated to 16% in the first nine months, while deposits increased by 12%. Although margin pressure may persist, management anticipates positive momentum and continued double-digit loan growth.

Operating expenses rose by 9%, but the cost-to-income ratio improved to 27.3% from 28.2% a year earlier. The bank's broad-based growth was driven by strong performance across net interest income, fee income, and trading income. Despite the strong results, the stock fell slightly by 0.36% to $16.7 following the report, reflecting cautious investor sentiment around potential net interest margin pressure and competition for deposits in the UAE market.