Abu Dhabi Commercial Bank’s rating upgraded to A+ as assets surpass Dh650 billion
Ranked among MENA’s top 3 banks by S&P Global Ratings
Abu Dhabi Commercial Bank (‘ADCB’) has secured an upgrade in its long-term issuer credit rating from ‘A’ to ‘A+’ with a ‘stable’ outlook by S&P Global Ratings.
The decision reflects the Bank’s strong financial position, high asset quality, and sound earnings generation.
This rating places ADCB among the three highest-rated banks by S&P in the MENA region, reinforcing its role as a key player in the UAE’s financial sector. The improved credit standing also supports ADCB’s ambitious strategy to sustain rapid growth and double its net profit to Dh20 billion within five years.
S&P’s assessment
In its research update, S&P highlighted ADCB’s financial resilience, stating: “Sound earnings generation and high capital retention still underpin ADCB’s capitalisation, which we view as a key rating strength.” The agency further noted that the Bank’s risk management culture and control framework have strengthened over the past four years, enabling it to better navigate economic cycles.
ADCB has demonstrated robust profitability since launching its previous strategy in 2020. Its profit before tax has grown at a compound annual growth rate (CAGR) of 28 percent, surpassing Dh10 billion in 2024 – achieving this milestone a year ahead of schedule.
Balance sheet growth
The Bank’s strong market position has driven substantial expansion, with total assets increasing by 59 percent since 2020 to exceed Dh650 billion in 2024. Net loans have grown at a CAGR of 10 percent, supported by a strategic shift in the loan book. Notably, exposure to government-related entities (GREs) has risen from 21 percent of gross loans in 2020 to 27 percent in 2024.
Additionally, ADCB’s strong franchise has attracted significant deposit inflows, with deposits growing at a CAGR of 14 percent since 2020. These indicators underscore ADCB’s ability to leverage its financial strength and high credit rating to drive future growth.