ADCB credit rating upgraded to ‘A+’ by S&P driven by strong financial position, high asset quality

Abu Dhabi Commercial Bank (ADCB) has achieved an upgrade in its long-term issuer credit rating to ‘A+’ from ‘A’ with a ‘stable’ outlook by S&P Global Ratings driven by the Bank’s strong financial position and high asset quality. The upgrade places ADCB among the top three highest rated banks by S&P in the MENA region.

Underlining its stability and security, ADCB’s high investment grade ratings support a favourable cost of capital as the Bank implements a new strategy to sustain its velocity of growth, with a target of doubling net profit to AED 20 billion within five years.

In a research update, S&P said: “Sound earnings generation and high capital retention still underpin ADCB’s capitalisation, which we view as a key rating strength.”

The rating agency added: “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.”

ADCB’s strong market position has driven significant balance sheet expansion, with assets increasing 59% since the end of 2020 to surpass AED 650 billion in 2024. Net loans have expanded at 10% CAGR, accompanied by a strategic rebalancing of the loan book, which has seen exposure to government-related entities (GREs) increase to 27% of gross loans from 21% in 2020. Meanwhile, ADCB’s strong franchise has attracted significant deposit inflows at 14% CAGR since 2020.