Abu Dhabi Commercial Bank (ADCB) has received an upgrade in its long-term issuer credit rating from S&P Global Ratings, moving from ‘A’ to ‘A+’ with a stable outlook. This upgrade emphasizes the bank’s robust financial position and high asset quality, placing ADCB among the top three highest-rated banks in the MENA region according to S&P.

The improved rating reflects ADCB’s sound earnings generation, which was noted as a key strength by S&P. The agency highlighted that the bank’s strong capital retention supports its capitalisation and positions it well to navigate future economic cycles. S&P believes that ADCB’s asset quality will benefit from enhancements in its risk management culture and control framework over the past four years.

ADCB has set an ambitious target to double its net profit to AED 20 billion within five years, supported by its high investment-grade ratings, which facilitate a favorable cost of capital for growth strategies. Since the implementation of its previous strategy in 2020, ADCB has achieved a compound annual growth rate (CAGR) of 28% in profit before tax, exceeding AED 10 billion in 2024, a year ahead of its target.

The bank’s strong market position has led to substantial balance sheet expansion, with total assets increasing by 59% since the end of 2020 to surpass AED 650 billion in 2024. Net loans have grown at a CAGR of 10%, while the exposure to government-related entities (GREs) has risen from 21% to 27% of gross loans since 2020. Additionally, ADCB has seen significant deposit inflows, with a CAGR of 14% since 2020, further solidifying its financial stability.