Abu Dhabi Commercial Bank (ADCB) has received an upgrade in its long-term issuer credit rating from ‘A’ to ‘A+’ by S&P Global Ratings. The rating, which comes with a stable outlook, reflects the bank’s strong financial position and high asset quality. With this upgrade, ADCB now ranks among the top three highest-rated banks in the MENA region.
ADCB : Strengthening Financial Stability and Growth
ADCB’s high investment-grade rating enhances its ability to maintain a favorable cost of capital, supporting its new strategy to double net profit to AED 20 billion within five years.
In its research update, S&P Global Ratings highlighted ADCB’s robust financial performance:
“Sound earnings generation and high capital retention still underpin ADCB’s capitalisation, which we view as a key rating strength.”
The agency further emphasized the bank’s commitment to risk management and sustainable growth:
“We believe the Bank’s asset quality will continue to benefit from the strengthening of its risk management culture and control framework over the past four years. We view these improvements, along with a more contained risk appetite, as enduring and therefore positioning the Bank to better navigate economic cycles.”
Expanding Market Position and Asset Growth
Abu Dhabi Commercial Bank has achieved significant balance sheet expansion, with assets surpassing AED 650 billion in 2024, reflecting a 59% increase since 2020. The bank’s net loans have grown at a compound annual growth rate (CAGR) of 10%, supported by strategic rebalancing of its loan portfolio.
Additionally, ADCB’s exposure to government-related entities (GREs) has increased to 27% of gross loans, compared to 21% in 2020. Meanwhile, strong franchise strength has driven 14% CAGR in deposit inflows since 2020.
This latest credit rating upgrade reinforces ADCB’s position as a leading financial institution in the region, well-equipped to sustain long-term growth while maintaining financial stability.
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