Interim report
Page 1
ABU DHABI ISLAMIC BANK PJSC Condensed consolidated interim financial statements 30 September 2026 (Unaudited)
Page 2
ABU DHABI ISLAMIC BANK PJSC Condensed consolidated interim financial statements 30 September 2026 (unaudited) Contents Page Review report on condensed consolidated interim financial statement s 1 - 2 Condensed consolidated interim statement of profit or loss 3 Condensed consolidated interim statement of comprehensive income 4 Condensed consolidated interim statement of financial position 5 Condensed consolidated interim statement of changes in equity 6 Condensed consolidated interim statement of cash flows 7 - 8 Notes to the condensed consolidated interim financial statements 9 – 48
Page 5
ABU DHABI ISLAMIC BANK PJSC 3 The attached notes 1 to 45 form part of these condensed consolidated interim financial statements. Condensed consolidated interim statement of profit or loss For the three-months and nine-months period ended (unaudited) Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 Notes AED ‘000 AED ‘000 AED ‘000 AED ‘000 Operating income Income from murabaha, mudaraba and wakala with financial institutions 604,014 582,567 1,774,352 1,642,186 Income from murabaha, mudaraba, ijara and other Islamic financing from customers 5 3,380,875 2,846,217 9,502,243 7,944,664 Income from sukuk measured at amortised cost 339,903 356,895 967,415 967,511 Income from sukuk measured at fair value 6 68,707 53,445 206,176 162,829 Net (loss) gains and other income from investments measured at fair value 7 (33,905) 34,656 (22,766) 69,721 Income from associates and joint ventures 21,876 26,135 87,042 75,735 Fees and commission income 8 1,051,486 933,978 2,881,201 2,729,544 Fees and commission expense 8 (460,141) (392,776) (1,242,256) (1,097,780) Fees and commission income, net 591,345 541,202 1,638,945 1,631,764 Foreign exchange income 181,412 194,039 577,213 586,073 Income from investment properties 9,282 8,973 80,958 39,971 Other income 27,105 76,868 66,410 84,740 5,190,614 4,720,997 14,877,988 13,205,194 Operating expenses Employees’ costs 9 (550,926) (568,925) (1,671,282) (1,565,948) General and administrative expenses 10 (303,680) (253,301) (874,632) (747,424) Depreciation (93,300) (89,050) (277,844) (264,901) Amortisation of intangibles 26 (2,268) (2,361) (6,834) (6,918) Provision for impairment, net 11 (149,737) (206,050) (450,629) (511,113) (1,099,911) (1,119,687) (3,281,221) (3,096,304) Profit from operations, before distribution to depositors and sukuk holders 4,090,703 3,601,310 11,596,767 10,108,890 Distribution to depositors and sukuk holders 12 (1,967,678) (1,506,393) (5,164,210) (4,056,872) Profit for the period before tax 2,123,025 2,094,917 6,432,557 6,052,018 Income tax expense 13 (269,889) (269,707) (823,849) (736,294) Profit for the period after tax 1,853,136 1,825,210 5,608,708 5,315,724 Attributable to: Equity holders of the Bank 1,728,751 1,724,495 5,256,216 5,016,848 Non-controlling interest 124,385 100,715 352,492 298,876 1,853,136 1,825,210 5,608,708 5,315,724 Basic and diluted earnings per share attributable to ordinary shares (AED) 14 0.448 0.447 1.375 1.307
Page 6
ABU DHABI ISLAMIC BANK PJSC 4 The attached notes 1 to 45 form part of these condensed consolidated interim financial statements. Condensed consolidated interim statement of comprehensive income For the three-months and nine-months period ended (unaudited) Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 Notes AED ‘000 AED ‘000 AED ‘000 AED ‘000 Profit for the period after tax 1,853,136 1,825,210 5,608,708 5,315,724 Other comprehensive (loss) income Items that will not be reclassified to consolidated statement of profit or loss Net (loss) gain on valuation of equity investments carried at fair value through other comprehensive income 32 (31,399) (9,952) (26,829) (11,064) Directors’ remuneration paid 36 - - (18,900) (16,100) Other movement in reserves (124) 2,806 (11,477) 7,125 Items that may subsequently be reclassified to consolidated statement of profit or loss Net movement in valuation of investments in sukuk carried at fair value through other comprehensive income (35,947) 39,948 (47,040) 87,590 Exchange differences arising on translation of foreign operations (213,603) 89,576 (313,125) 146,639 Gain (loss) on hedge of foreign operations 336 (73) 2,318 (8,010) Fair value (loss) gain on cash flow hedges 32 - (11,553) - 3,341 ________ ________ ________ ________ Other comprehensive (loss) income for the period (280,737) 110,752 (415,053) 209,521 ________ ________ ________ ________ Total comprehensive income for the period 1,572,399 1,935,962 5,193,655 5,525,245 _____ __ _____ __ ____ ___ ____ ___ Attributable to: Equity holders of the Bank 1,545,712 1,794,021 4,997,877 5,160,897 Non-controlling interest 26,687 141,941 195,778 364,348 ________ ________ ________ ________ 1,572,399 1,935,962 5,193,655 5,525,245 _ ______ _ ______ __ _____ __ _____
Page 7
Nloha lbary Grou Chief Exet. tive Officer ABU DHABI ISLAMIC BANK P,JSC Condensed consolidated interim statement of financial position At 30 September 2026 (unaudited) Notes Assets 30 September 2026 AED '000 (unaudited) 5 31 December 2025 AED 000 (audited) Cash and balances %kith central banks 15 40,414,629 43.952.147 Balances and ‘Aakala deposits %%ith Islamic banks and other financial institutions 16 6,611,847 4.618.780 Mumbaha and mudaraba V.ith financial institutions 17 7,679,774 7.255.105 Mumbaha and other Islamic financing 18 129,955,758 110,752.052 Ijara financing 19 84,592,409 70.624.211 Investment in sukuk measured at amortised cost 20 30,509,160 26.714.211 Investments measured at fair value 21 5,210,398 4.906.366 Investment in associates and joint ventures 22 1,071,046 1.013.813 Investment properties 23 1,172,966 1.310.369 Development properties 24 866,645 742.965 Other assets 25 6,298,425 5.625.529 Property and equipment 2,835,652 2.774.729 Goody, ill and intangibles 26 423,063 462.871 Total assets 317,641,772 280.753.148 Liabilities Due to financial institutions 27 15,464,101) 9.684.648 Depositors' accounts 28 258,727,396 229.096.294 Other liabilities 29 7,815,687 7.766.336 Sukuk financing instrument 30 1,836,250 1,836.25() Total liabilities 283,843,433 248.383.528 Equity Share capital 31 3,632,000 3.632.000 legal reserve 2,732,486 1.700.118 General resene 4,540,449 4.540.468 Credit risk rese.ne 400,000 400.000 Retained earnings 16,750,151 15,847.603 Other reserves 32 (775,478) (1.052.821) Tier I sukuk 33 4,754,375 4.754.375 Equity attributable to the equity and Tier 1 sukuk holders of the Bank 32,033,983 30.821.853 Non-controlling interest 1.764,356 1.547.767 Total equity 33,798,339 32.369.620 Total liabilities and equity 317,641,772 280.753.148 To the best olour knocs ledge. the condensed consolidated interim financial statements present fairly in all mater 1 respects the financial condition. financial performance and cash flov,s of the Group as of, and for, the periods presente erein. H.E. Jawaan Awaidha Suhail Al Khaili Chairman The attached notes I to 45 form part of these condensed consolidated interim financial statements.
Page 8
ABU DHABI ISLAMIC BANK PJSC 6 The attached notes 1 to 45 form part of these condensed consolidated interim financial statements. Condensed consolidated interim statement of changes in equity For the nine-months period ended (unaudited) Attributable to the equity and Tier 1 sukuk holders of the Bank Share capital Legal reserve General reserve Credit Risk reserve Retained earnings Other reserves Tier 1 sukuk Total Non- controlling interest Total equity Notes AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Balance at 1 January 2026 - audited 3,632,000 2,700,228 4,540,468 400,000 15,847,603 (1,052,821) 4,754,375 30,821,853 1,547,767 32,369,620 Profit for the period - - - - 5,256,216 - - 5,256,216 352,492 5,608,708 Other comprehensive loss - - - - (18,900) (239,439) - (258,339) (156,714) (415,053) Profit paid on Tier 1 sukuk – Listed (third issue) 33 - - - - (199,692) - - (199,692) - (199,692) Profit paid on Tier 1 sukuk – Government of Abu Dhabi 33 - - - - (61,199) - - (61,199) - (61,199) Dividends paid 40 - - - - (3,524,856) - - (3,524,856) - (3,524,856) Transfer to Impairment reserve – General 32 - - - - (516,782) 516,782 - - - - Movement in reserves - 32,258 (19) - (32,239) - - - 20,811 20,811 Balance at 30 September 2026 - unaudited 3,632,000 2,732,486 4,540,449 400,000 16,750,151 (775,478) 4,754,375 32,033,983 1,764,356 33,798,339 Balance at 1 January 2025 - audited 3,632,000 2,670,774 3,947,177 400,000 13,501,350 (1,559,991) 4,754,375 27,345,685 971,553 28,317,238 Profit for the period - - - - 5,016,848 - - 5,016,848 298,876 5,315,724 Other comprehensive (loss) income - - - - (16,100) 160,149 - 144,049 65,472 209,521 Profit paid on Tier 1 sukuk – Listed (third issue) 33 - - - - (199,692) - - (199,692) - (199,692) Profit paid on Tier 1 sukuk – Government of Abu Dhabi 33 - - - - (69,298) - - (69,298) - (69,298) Dividends paid 40 - - - - (3,030,337) - - (3,030,337) - (3,030,337) Transfer to Impairment reserve – General 32 - - - - (329,568) 329,568 - - - - Loss on disposal of FVTOCI investment - - - - (28,998) 28,998 - - - - Movement in reserves - 29,243 11 - (29,254) - - - - - Balance at 30 September 2025 - unaudited 3,632,000 2,700,017 3,947,188 400,000 14,814,951 (1,041,276) 4,754,375 29,207,255 1,335,901 30,543,156
Page 9
ABU DHABI ISLAMIC BANK PJSC 7 The attached notes 1 to 45 form part of these condensed consolidated interim financial statements. Condensed consolidated interim statement of cash flows For the nine-months period ended (unaudited) 30 September 2026 30 September 2025 Notes AED ‘000 AED ‘000 Operating activities Profit for the period 5,608,708 5,315,724 Adjustments for: Depreciation on investment properties 23 10,165 10,526 Depreciation on property and equipment 223,132 206,524 Depreciation on right-of-use assets 44,547 47,851 Amortisation of intangibles 26 6,834 6,918 Share of results of associates and joint ventures (87,042) (75,735) Realised loss (gain) on investments carried at fair value through profit or loss 7 11,833 (42,426) Unrealised loss (gain) on investments carried at fair value through profit or loss 7 34,875 (8,791) Realised gain on sukuk carried at fair value through other comprehensive income 7 (51) (1,931) Dividend income 7 (2,174) (1,839) Finance cost on lease liabilities 10 4,353 4,485 Provision for impairment, net 11 450,629 511,113 Provision for taxation 13 823,849 736,294 Gain on disposal of investment properties (52,434) (12,170) Operating profit before changes in operating assets and liabilities 7,077,224 6,696,543 Changes in operating assets and liabilities Decrease (increase) in balances with central banks 2,003,119 (1,452,297) Increase in balances and wakala deposits with Islamic banks and other financial institutions (455,141) (122,014) Increase in murabaha and mudaraba with financial institutions (446,616) (2,459,215) Increase in murabaha and other Islamic financing (19,711,442) (19,450,337) Increase in ijara financing (13,955,563) (9,348,769) Additions in investments carried at fair value through profit or loss (11,078,899) (11,002,615) Disposals / redemptions in investments carried at fair value through profit or loss 10,379,285 11,195,248 Increase in other assets (677,685) (501,409) Increase in due to financial institutions 5,779,452 1,814,860 Increase in depositors’ accounts 29,633,420 38,984,428 (Decrease) increase in other liabilities (21,795) 932,298 Cash from operations 8,525,359 15,286,721 Income taxes paid Directors' remuneration paid 36 (968,307) (18,900) (764,424) (16,100) Net cash from operating activities 7,538,152 14,506,197
Page 10
ABU DHABI ISLAMIC BANK PJSC 8 The attached notes 1 to 45 form part of these condensed consolidated interim financial statements. Condensed consolidated interim statement of cash flows For the nine-months period ended (unaudited) [continued] 30 September 2026 30 September 2025 Notes AED ‘000 AED ‘000 Investing activities Additions in investments carried at fair value through other comprehensive income (30,539) (197,642) Disposal / redemptions in investments carried at fair value through other comprehensive income 319,258 278,431 Additions in investments carried at amortised cost (5,700,862) (11,097,719) Redemptions of investments carried at amortised cost 1,886,588 5,570,455 Dividend received 2,174 1,839 Dividend received from associates and joint ventures 19,678 18,250 Proceeds from disposal of investment properties 179,650 20,585 Additions in development properties - (20,025) Purchase of property and equipment (328,602) (346,617) Net cash used in investing activities (3,652,655) (5,772,443) Financing activities Profit paid on Tier 1 sukuk – Listed (third issue) 33 (199,692) (199,692) Profit paid on Tier 1 sukuk – Government of Abu Dhabi 33 (61,199) (69,298) Repayment of lease liability (38,947) (41,556) Repayment of finance cost on lease liability 10 (4,353) (4,485) Dividends paid (3,524,856) (3,030,337) Net cash used in financing activities (3,829,047) (3,345,368) Increase in cash and cash equivalents 56,450 5,388,386 Effect of exchange rate on cash and cash equivalents (27,057) 25,114 Cash and cash equivalents at 1 January 15,949,306 14,042,801 Cash and cash equivalents at 30 September 35 15,978,699 19,456,301 Operating cash flows from profit on balances and wakala deposits with Islamic banks and other financial institutions, murabaha and mudaraba with financial institutions, customer financing, sukuk and customer deposits are as follows: Profit received 12,640,057 10,318,829 Profit paid to depositors 4,854,850 3,839,447
Page 11
ABU DHABI ISLAMIC BANK PJSC 9 Notes to the condensed consolidated interim financial statements 30 September 2026 (Unaudited) 1 Legal status and principal activities Abu Dhabi Islamic Bank PJSC ( the “Bank”) was incorporated in the Emirate of Abu Dhabi, United Arab Emirates (UAE), as a public joint stock company with limited liability, in accordance with the provisions of the UAE Federal Commercial Companies Law No. (8) of 1984 (as amended) and the Amiri Decree No. 9 of 1997. UAE Federal Law No. 32 of 2021 on Commercial Companies (the “New Companies Law”) was issued on 20 September 2021 and came into effect on 2 January 2022. The Bank and its subsidiaries (the “Group”) carry out full banking services, financing and investing activities through various Islamic instruments such as Murabaha, Istisna’a, Mudaraba, Musharaka, Ijara, Wakalah, Sukuk etc. The activities of the Bank are conducted in accordance with Islamic Shari’a, which prohibits usury as determined by the Internal Shari’a Supervisory Committee of the Bank, and within the provisions of the Articles and Memorandum of Association of the respective entities within the Group. In addition to its main office in Abu Dhabi, the Bank operates through its 63 branches in the UAE (2025: 61 branches) and 3 overseas branches in Iraq, Qatar and Sudan and subsidiaries in the UAE , Egypt and the United Kingdom. The condensed consolidated interim financial statements combine the activities of the Bank’s head office, its branches and subsidiaries. The registered office of the Bank is at P. O. Box 313, Abu Dhabi, UAE. The condensed consolidated interim financial statements of the Group were authorised for issue by the Board of Directors on 27 October 2026. 2 Definitions The following terms are used in the condensed consolidated interim financial statements with the meanings specified: Murabaha A sale contract, in which the Group sells to a customer a physical asset, goods, or shares already owned and possessed (either physically or constructively) at a selling price that consists of the purchase cost plus a mark-up profit. Istisna’a A sale contract, in which the Group (Al Saanee) sells an asset to be developed using its own materials to a customer (Al Mustasnee) according to pre -agreed upon precise specification, at a specific price, installments dates and to be delivered on a specific date. This developed asset can be either developed directly by the Group or through a subcontractor and then it is handed over to the customer on the pre-agreed upon date. Ijara A lease contract whereby the Group (the Lessor) leases to a customer (the Lessee) a service or the usufruct of an owned or rented physical asset that either exists currently or to be constructed in future (forward lease) for a specific period of time at specific rental installments. The lease contract could be ended by transferring the ownership of a leased physical asset through an independent mode to the lessee. Qard Hasan A non-profit bearing loan that enables the borrower to use the borrowed amount for a specific period of time, at the end of which the same borrowed amounts would be repaid free of any charges or profits.
Page 12
ABU DHABI ISLAMIC BANK PJSC 10 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (Unaudited) 2 Definitions (continued) Musharaka A contract between the Group and a customer to entering into a partnership in an existing project (or to be established), or in the ownership of a specific asset, either on ongoing basis or for a limited time, during which the Group enters in particular arrangements with the customer to sell to him/her its share in this partnership until he/she becomes the sole owner of it (diminishing Musharaka). Profits are distributed according to the mutual agreement of the parties as stipulated in the contract; however, losses are borne according to the exact shares in the Musharaka capital on a pro- rata basis. Mudaraba A contract between the Group and a customer, whereby one party provides the funds (Rab Al Mal) and the other party (the Mudarib) invests the funds in a project or a particular activity and any generated profits are distributed between the parties according to the profit shares that were pre-agreed upon in the contract. The Mudarib is responsible of all losses caused by his misconduct, negligence or violation of the terms and conditions of the Mudaraba; otherwise, losses are borne by Rab Al Mal. Wakalah A contract between the Group and a customer whereby one party (the principal: the Muwakkil) appoints the other party (the agent: Wakil) to invest certain funds according to the terms and conditions of the Wakala for a fixed fee in addition to any profit exceeding the expected profit as an incentive for the Wakil for the good performance. Any losses as a result of the misconduct or negligence or violation of the terms and conditions of the Wakala are borne by the Wakil; otherwise, they are borne by the principal. Sukuk Certificates which are equal in value and represent common shares in the ownership of a specific physical asset (leased or to be leased either existing or to be constructed in future), or in the ownership of cash receivables of selling an existing-owned asset, or in the ownership of goods receivables, or in the ownership of the assets of Mudaraba or Partnership companies. In all these cases, the Sukuk holders shall be the owners of their common shares in the leased assets, or in the cash receivables, or the goods receivable, or in the assets of the Partnership or the Mudaraba. 3 Basis of preparation 3.1 (a) Statement of compliance The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting , general principles of the Shari’a as determined by the Group’s Internal Shari’a Supervisory Committee and applicable requirements of the laws of the UAE. 3.1 (b) Accounting convention The condensed consolidated interim financial statements have been prepared under the historical cost convention except for investments carried at fair value through profit or loss, investments carried at fair value through other comprehensive income, Shari'a compliant alternatives of derivative financial instruments which have been measured at fair value and land, held as property and equipment, which has been carried at revalued amount. The condensed consolidated interim financial statements have been presented in UAE Dirhams (AED), which is the functional currency of the Bank and all values are rounded to the nearest thousand AED except where otherwise indicated.
Page 13
ABU DHABI ISLAMIC BANK PJSC 11 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (Unaudited) 3 Basis of preparation (continued) 3.1 (c) Basis of consolidation The condensed consolidated interim financial statements comprise the financial statements of the Bank and those of its following subsidiaries: Activity Country Percentage of holding of incorporation 2026 2025 Abu Dhabi Islamic Bank – Egypt (S.A.E.)** Islamic Banking Egypt 53% 53% Abu Dhabi Islamic Securities Company LLC Equity brokerage services United Arab Emirates 95% 95% Burooj Properties LLC Real estate investments United Arab Emirates 100% 100% MPM Properties LLC Real estate services United Arab Emirates 100% 100% Kawader Services LLC Manpower supply United Arab Emirates 100% 100% ADIB (UK) Limited Other services United Kingdom 100% 100% ADIB Capital Ltd Funds services United Arab Emirates 100% 100% Fractionalized Sukuk Holding Limited* Special purpose vehicle United Arab Emirates - - ADIB Sukuk Company II Ltd* Special purpose vehicle Cayman Islands - - ADIB Capital Invest 3 Ltd* Special purpose vehicle Cayman Islands - - ADIB Capital Invest 4 Ltd* Special purpose vehicle Cayman Islands - - *The Bank does not have any direct holding in these entities and they are considered to be a subsidiary by virtue of control. ** It has been approved by ADIB Internal Shari’a Supervisory Committee to consolidate the financial statements of ADIB Egypt with ADIB Group following the use of an exceptionally acceptable structure in the absence of a permanent structure to invest ADIB Egypt liquidity in a way other than the direct in vestment of such liquidity in the conventional securities issued by the Central Bank of Egypt and which allowed the recognition of the income accordingly. The Bank continues to recognize the profits that have been purified prior the use of the structured mentioned above. These condensed consolidated interim financial statements include the operations of the subsidiaries over which the Bank has control. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting year as the Bank, using consistent accounting policies. All intra-group balances, transactions, income and expenses and gains and losses resulting from intra-group transactions are eliminated in full. Non-controlling interest represent the portion of the net income or loss and net assets of the subsidiaries not held by the Group and are presented separately in the consolidated interim statement of comprehensive income and within equity in the consolidated interim statement of financial position, separately from shareholders’ equity of the Bank. 3.2 Use of estimates and judgements The preparation of the condensed consolidated interim financial statements in conformity with the IFRS Accounting Standards requires management to make judgment, estimates and assumptions that affect the application of accounting policies and reported amounts of financial assets and liabilities and the disclosure of contingent liabilities. These judgments, estimates and assumptions also affect the revenue, expenses and provisions as well as fair value changes. These judgments, estimates and assumptions may affect the reported amounts in subsequent financial years. Estimates and judgments are currently evaluated and are based on historical experience and other factors. In order to reduce the element of subjectivity, the Group has laid down clear criteria to enable estimation of future cash flows. As estimates are based on judgments, actual results may differ, resulting in future changes in such provisions. In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied to the consolidated financial statements as at and for the year ended 31 December 2025.
Page 14
ABU DHABI ISLAMIC BANK PJSC 12 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 4 Material accounting policies The condensed consolidated interim financial statements do not contain all information and disclosures required for full consolidated financial statements prepared in accordance with IFRS Accounting Standards , and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2025. In addition, results for the nine months ended 30 September 2026 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2026. The accounting policies used in the preparation of the condensed consolidated interim financial statements , except the adoption of the following new standards / amendments as of 1 January 2026, are consistent with those used in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025 . New and amended Standard and interpretations adopted effective from 1 January 2026 Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 Annual Improvements to IFRS Accounting Standard – Volume 11 Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 Standards issued but not yet effective The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. New and revised IFRS Accounting Standards Effective for annual periods beginning on or after IFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 IFRS 19 Subsidiaries without Public Accountability: Disclosure 1 January 2027 Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21). 1 January 2027 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 and IAS 28 Deferred indefinitely Management anticipates that these new standards, interpretations and amendments will be adopted in the Group’s condensed consolidated interim financial statements as and when they are applicable and adoption of these new standards and amendments may have no material impact on the condensed consolidated interim financial statements of the Group in the period of initial application.
Page 15
ABU DHABI ISLAMIC BANK PJSC 13 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 5 Income from murabaha, mudaraba, ijara and other Islamic financing from customers Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Vehicle murabaha 259,780 214,388 747,159 581,349 Goods murabaha 657,388 556,584 1,774,535 1,485,871 Share murabaha 249,907 227,520 718,237 666,500 Commodities murabaha – Al Khair 150,723 150,040 468,494 438,057 Islamic covered cards (murabaha) 173,539 153,117 499,304 428,306 Other murabaha 446,026 325,861 1,270,440 840,004 Total murabaha 1,937,363 1,627,510 5,478,169 4,440,087 Mudaraba 369,799 281,603 981,732 823,970 Ijara 1,012,345 899,397 2,884,985 2,551,363 Wakala 58,997 35,154 149,879 121,625 Istisna’a 2,371 2,553 7,478 7,619 3,380,875 2,846,217 9,502,243 7,944,664 6 Income from sukuk measured at fair value Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Income from sukuk measured at fair value through profit or loss 22,204 27,133 66,118 79,524 Income from sukuk measured at fair value through other comprehensive income 46,503 26,312 140,058 83,305 68,707 53,445 206,176 162,829
Page 16
ABU DHABI ISLAMIC BANK PJSC 14 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 7 Net (loss) gains and other income from investments measured at fair value Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Realised (loss) gain on investments carried at fair value through profit or loss (10,289) 25,400 (11,833) 42,426 Unrealised (loss) gain on investments carried at fair value through profit or loss (25,636) 3,368 (34,875) 8,791 Realised (loss) gain on investments carried at fair value through other comprehensive income (4) - 51 1,931 Income from other investment assets 1,976 5,888 21,717 14,734 Dividend income 48 - 2,174 1,839 (33,905) 34,656 (22,766) 69,721 8 Fees and commission income and expense Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Fees and commission income Fees and commission income on cards 627,093 558,788 1,657,382 1,536,479 Trade related fees and commission 64,782 60,246 179,775 210,207 Accounts services fees 66,459 55,538 193,653 157,871 Projects and property management fees 19,867 18,283 53,276 51,548 Risk participation and arrangement fees 78,528 44,663 257,735 201,825 Brokerage fees and commission 11,168 15,156 42,545 40,328 Other fees and commissions 183,589 181,304 496,835 531,286 Total fees and commission income 1,051,486 933,978 2,881,201 2,729,544 Fees and commission expenses Card related fees and commission expenses (386,362) (347,203) (1,048,538) (958,279) Other fees and commission expenses (73,779) (45,573) (193,718) (139,501) Total fees and commission expenses (460,141) (392,776) (1,242,256) (1,097,780) Fees and commission income, net 591,345 541,202 1,638,945 1,631,764
Page 17
ABU DHABI ISLAMIC BANK PJSC 15 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 9 Employees’ costs Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Salaries and wages 481,438 505,204 1,466,475 1,382,658 End of service benefits 27,131 21,994 74,579 70,496 Other staff expenses 42,357 41,727 130,228 112,794 550,926 568,925 1,671,282 1,565,948 10 General and administrative expenses Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Legal and professional expenses 34,746 38,933 104,513 111,328 Premises expenses 35,089 27,804 93,506 77,325 Marketing and advertising expenses 26,477 29,935 83,663 73,868 Communication expenses 32,375 28,813 92,893 87,772 Technology related expenses 78,041 69,002 241,988 222,636 Finance cost on lease liabilities 1,488 1,435 4,353 4,485 Other operating expenses 95,464 57,379 253,716 170,010 303,680 253,301 874,632 747,424 11 Provision for impairment, net Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Murabaha and other Islamic financing 145,003 181,852 496,872 461,680 Ijara financing (3,000) 58,827 (12,635) 139,868 Direct write-off, net of recoveries 6,275 2,721 10,864 7,615 Investment in sukuk measured at amortised cost 3,652 (23,934) 19,325 (33,785) Others (2,193) (13,416) (63,797) (64,265) 149,737 206,050 450,629 511,113
Page 18
ABU DHABI ISLAMIC BANK PJSC 16 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 12 Distribution to depositors and sukuk holders Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Investment accounts 1,941,535 1,480,250 5,086,001 3,978,663 Sukuk holders 26,143 26,143 78,209 78,209 1,967,678 1,506,393 5,164,210 4,056,872 13 Income tax expense On 9 December 2022, the United Arab Emirates (UAE) Ministry of Finance (“MoF”) released Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses, Corporate Tax Law (“CT Law”) to enact a new CT regime in the UAE. The new CT regime has become effective for accounting periods beginning on or after 1 June 2023. The taxable income of the entities that are in scope for UAE CT purposes will be subject to the rate of 9% corporate tax. Furthermore, the Bank pays taxes on its international branches and subsidiary in accordance with the tax laws prevailing in those countries mainly Egypt where the tax rate is 22.5%. The current tax charge in the condensed consolidated income statement is as follows: Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Current (UAE Corporate tax) 137,145 169,082 447,107 452,101 As per other international tax jurisdiction 132,744 100,625 376,742 284,193 269,889 269,707 823,849 736,294 Effective Tax Rate (“ETR”) 12.7% 12.9% 12.8% 12.2%
Page 19
ABU DHABI ISLAMIC BANK PJSC 17 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 13 Income tax expense (continued) The reconciliation of tax expense to the accounting profit before tax is as follows: Nine-months ended 30 September 2026 2025 AED ‘000 AED ‘000 Accounting profit before tax 6,432,557 6,052,018 Tax expense at 9% (UAE Corporate tax rate) 578,930 544,682 Tax effect of difference: Tax effect of different tax rates operating in different jurisdictions 268,962 204,861 Others (24,043) (13,249) 823,849 736,294 Pillar 2 In line with the OECD’s Global Minimum Tax initiative (Pillar Two), the UAE Ministry of Finance has implemented a Domestic Minimum Top-Up Tax (DMTT) of 15%, which will be applicable to Multinational Enterprises (MNEs) for financial years commencing on or after 1 January 2025. The Group qualifies as an MNE, having consolidated revenue that exceeds the EUR 750 million threshold in two out of the four preceding years; therefore, the DMTT regulations will apply to the Group. As per Article 9.3 of the UAE DMTT framework offers Initial Phase of International Activity (IPIA) relief, which permits a reduction of the top-up tax to zero for UAE entities for up to five years, provided that specific conditions are met. The Group fulfills the criteria for IPIA relief for the nine month period ended 30 September 2026.
Page 20
ABU DHABI ISLAMIC BANK PJSC 18 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 14 Basic and diluted earnings per share Basic earnings per share amounts are calculated by dividing the profit for the period attributable to ordinary equity holders of the Bank by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are calculated by dividing the profit for the period attributable to ordinary equity holders of the Bank by the weighted average number of ordinary shares outstanding during the period, adjusted for the effects of any financial instruments with dilutive effects. The following reflects the income and shares data used in the earnings per share computations: Three-months ended Nine-months ended 30 September 30 September 2026 2025 2026 2025 Profit for the period attributable to equity holders - (AED ‘000) 1,728,751 1,724,495 5,256,216 5,016,848 Less: profit attributable to Tier 1 sukuk holder - Listed (third issue) - (AED ‘000) (99,846) (99,846) (199,692) (199,692) - Government of Abu Dhabi - (AED ‘000) - - (61,199) (69,298) ________ ________ ________ ________ Profit for the period attributable to equity holders after deducting profit relating to Tier 1 sukuk (AED ‘000) 1,628,905 1,624,649 4,995,325 4,747,858 ________ ________ ________ ________ Weighted average number of ordinary shares in issue (000’s) 3,632,000 3,632,000 3,632,000 3,632,000 ________ ________ ________ ________ Basic and diluted earnings per share (AED) 0.448 0.447 1.375 1.307 The Bank does not have any instruments which would have a dilutive impact on earnings per share when converted or exercised. Profit on Tier 1 sukuk is reflected in the EPS computation on the payment of such profit.
Page 21
ABU DHABI ISLAMIC BANK PJSC 19 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 15 Cash and balances with central banks 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Cash on hand 2,296,559 2,641,965 Balances with central banks: - Current accounts 681,970 1,634,186 - Statutory reserve 24,460,120 22,961,774 - Islamic certificate of deposits 12,980,816 16,714,748 40,419,465 43,952,673 Less: provision for impairment (4,836) (526) 40,414,629 43,952,147 The Bank is required to maintain statutory reserves with the Central Bank of the UAE, Egypt and Iraq on demand, time and other deposits. The statutory reserves are available for use in the Bank’s day-to-day operations and cannot be withdrawn without the approval of the respective Central Banks. Cash on hand and current accounts are not profit - bearing. Islamic certificate of deposits are profit bearing, which is based on entering into international commodities Murabaha transaction in which Central Bank of the UAE and Central Bank of Iraq are the buyers and the Bank is the seller. The distribution of the gross cash and balances with central banks by geographic region is as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) UAE 35,445,353 39,612,259 Rest of the Middle East 2,524,472 2,175,399 Others 2,449,640 2,165,015 40,419,465 43,952,673
Page 22
ABU DHABI ISLAMIC BANK PJSC 20 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 16 Balances and wakala deposits with Islamic banks and other financial institutions 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Current accounts 244,013 513,681 Wakala deposits 6,383,663 4,108,828 6,627,676 4,622,509 Less: provision for impairment (15,829) (3,729) 6,611,847 4,618,780 In accordance with Shari'a principles, deposits are invested only with Islamic financial institutions. The Bank does not earn profits on current accounts with banks and financial institutions. The distribution of the gross balances and wakala deposits with Islamic banks and other financial institutions by geographic region is as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) UAE 1,713,439 211,177 Rest of the Middle East 3,945,440 3,733,569 Europe 808,096 293,011 Others 160,701 384,752 6,627,676 4,622,509 17 Murabaha and mudaraba with financial institutions 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Murabaha 7,728,233 7,303,119 Less: provision for impairment (48,459) (48,014) 7,679,774 7,255,105 In accordance with Shari'a principles, Mudaraba are with Islamic financial institutions or provided for the activities that are entirely Sharia’ compliant.
Page 23
ABU DHABI ISLAMIC BANK PJSC 21 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 17 Murabaha and mudaraba with financial institutions (continued) The distribution of the gross murabaha and mudaraba with financial institutions by geographic region is as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Rest of the Middle East 200,866 202,869 Others 7,527,367 7,100,250 7,728,233 7,303,119 18 Murabaha and other Islamic financing 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Vehicle murabaha 15,702,040 14,503,428 Goods murabaha 65,789,989 54,113,322 Share murabaha 11,028,528 10,724,546 Commodities murabaha – Al Khair 11,815,458 12,046,639 Islamic covered cards (murabaha) 17,688,845 16,556,391 Other murabaha 17,886,581 15,399,521 Total murabaha 139,911,441 123,343,847 Mudaraba 9,336,861 6,867,249 Wakala 4,150,479 2,645,822 Istisna’a 172,263 209,956 Other financing receivables 408,622 251,926 Total murabaha and other Islamic financing 153,979,666 133,318,800 Less: deferred income on murabaha (22,058,074) (20,785,765) 131,921,592 112,533,035 Less: provision for impairment (1,965,834) (1,780,983) 129,955,758 110,752,052
Page 24
ABU DHABI ISLAMIC BANK PJSC 22 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 18 Murabaha and other Islamic financing (continued) The distribution of the gross murabaha and other Islamic financing by industry sector and geographic region was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Industry sector Government 19,599,280 15,646,975 Public sector 28,424,252 22,612,680 Corporates 11,531,353 8,952,619 Financial institutions 7,918,933 6,411,002 Individuals 61,901,935 57,110,188 Small and medium enterprises 2,545,839 1,799,571 131,921,592 112,533,035 Geographic region UAE 95,231,467 81,266,309 Rest of the Middle East 15,946,300 14,614,568 Europe 4,912,435 3,957,057 Others 15,831,390 12,695,101 131,921,592 112,533,035 19 Ijara financing This represents net investment in assets leased for periods which either approximate or cover major parts of the estimated useful lives of such assets. The documentation includes a separate undertaking from the Bank to sell the leased assets to the lessee upon the maturity of the lease. The aggregate future lease receivables are as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Ijara financing 86,542,829 73,055,943 Less: provision for impairment (1,950,420) (2,431,732) 84,592,409 70,624,211
Page 25
ABU DHABI ISLAMIC BANK PJSC 23 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 19 Ijara financing (continued) The distribution of the gross ijara financing by industry sector and geographic region was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Industry sector Government 1,640,222 1,210,274 Public sector 7,605,459 5,717,013 Corporates 19,276,933 18,419,796 Individuals 57,352,672 47,231,561 Small and medium enterprises 568,535 367,655 Non-profit organisations 99,008 109,644 86,542,829 73,055,943 Geographic region UAE 83,134,518 69,953,559 Rest of the Middle East 1,622,332 1,671,519 Europe 380,656 456,154 Others 1,405,323 974,711 86,542,829 73,055,943 20 Investment in sukuk measured at amortised cost 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Sukuk - Quoted 30,578,966 26,764,718 Less: provision for impairment (69,806) (50,507) 30,509,160 26,714,211 The Group entered into collateralized murabaha arrangement whereby sukuk are held as collateral with counterparties. The risks and rewards relating to the sukuk collateralised remain with the Group. At 3 0 September 2026, certain sukuk with an aggregate carrying value of AED 11,903,862 thousand (fair value of AED 11,278,421 thousand) [31 December 2025: carrying value AED 3,781,762 thousand and fair value AED 3,635,755 thousand ] which were collateralized against Collateralised murabaha amounts to AED 10,781,674 thousand (31 December 2025: AED 3,363,553 thousand).
Page 26
ABU DHABI ISLAMIC BANK PJSC 24 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 20 Investment in sukuk measured at amortised cost (continued) The distribution of the gross investments by geographic region was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) UAE 14,433,852 12,900,956 Rest of the Middle East 12,895,845 11,518,860 Others 3,249,269 2,344,902 30,578,966 26,764,718 21 Investments measured at fair value 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Investments carried at fair value through profit or loss Quoted investments Equities 15,109 11,041 Sukuk 1,605,833 956,995 1,620,942 968,036 Unquoted sukuk 332,135 332,135 1,953,077 1,300,171 Unquoted sukuk carried at fair value through profit or loss includes financial assets acquired as part of settlement of an existing financing exposure that has been transferred to a new entity controlled by the financiers. The instrument is expected to be settled through the sale of operating assets transferred to the new entity.
Page 27
ABU DHABI ISLAMIC BANK PJSC 25 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 21 Investments measured at fair value (continued) 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Investments carried at fair value through other comprehensive income Quoted investments Equities 24,208 24,166 Sukuk 2,632,203 2,886,305 2,656,411 2,910,471 Unquoted investments Sukuk - 43,257 Funds 520,037 559,265 Private equities 85,691 117,399 605,728 719,921 3,262,139 3,630,392 5,215,216 4,930,563 Less: provision for impairment (4,818) (24,197) 5,210,398 4,906,366 The Group entered into collateralized murabaha arrangement whereby sukuk are held as collateral with counterparties. The risks and rewards relating to the sukuk collateralised remain with the Group. At 30 September 2026, certain sukuk with an aggregate carrying value of AED 555,640 thousand (fair value of AED 555,640 thousand) [31 December 2025: carrying value Nil and fair value Nil ] which were collateralized against Collateralised murabaha amounts to AED 505,191 thousand (31 December 2025: Nil). The distribution of the gross investments by geographic region was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Geography region UAE 2,362,514 2,635,105 Rest of the Middle East 1,484,201 1,272,691 Europe 5,387 880 Others 1,363,114 1,021,887 5,215,216 4,930,563
Page 28
ABU DHABI ISLAMIC BANK PJSC 26 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 22 Investment in associates and joint ventures The movement in the carrying amount during the period was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) At the beginning of the period 1,028,969 910,854 Share of results 87,042 105,011 Dividends received (19,678) (18,250) Foreign currency translation (10,131) 31,354 At the end of the period 1,086,202 1,028,969 Less: provision for impairment (15,156) (15,156) Net balance at the end of the period 1,071,046 1,013,813 There is no movement in the provision for impairment during the period. Details of the Bank’s investment in associates and joint ventures at 30 September is as follows: Proportion of Place of ownership incorporation interest Principal activity 2026 2025 % % Associates Abu Dhabi National Takaful PJSC UAE 42 42 Islamic insurance Bosna Bank International D. D Bosnia 27 27 Islamic banking The Residential REIT (IC) Limited UAE 29 29 Real estate fund Joint ventures Saudi Finance Company CSJC Kingdom of Saudi Arabia 51 51 Islamic Retail Finance Arab Link Money Transfer PSC (under liquidation) UAE 51 51 Currency Exchange Abu Dhabi Islamic Merchant Acquiring Company LLC UAE 51 51 Merchant acquiring
Page 29
ABU DHABI ISLAMIC BANK PJSC 27 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 23 Investment properties The movement in investment properties balance during the period was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Cost Balance at the beginning of the period 1,476,245 1,496,592 Disposals during the period (129,784) (20,384) Foreign currency translation (22) 37 Gross balance at the end of the period 1,346,439 1,476,245 Less: provision for impairment (31,943) (31,943) Net balance at the end of the period 1,314,496 1,444,302 Accumulated depreciation: Balance at the beginning of the period 133,933 131,661 Charge for the period 10,165 13,988 Relating to disposals (2,568) (11,716) Balance at the end of the period 141,530 133,933 Net book value at the end of the period 1,172,966 1,310,369 The property rental income earned by the Group from its investment properties, that are leased out under operating leases, amounted to AED 28,524 thousand (30 September 2025: AED 27,801 thousand) for the nine months period ended 30 September 2026. There is no movement in the provision for impairment during the period. The distribution of investment properties by geographic region was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) UAE 1,196,499 1,333,821 Rest of the Middle East 8,214 8,214 Others 196 277 1,204,909 1,342,312
Page 30
ABU DHABI ISLAMIC BANK PJSC 28 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 24 Development properties 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) At the beginning of the period 866,645 846,620 Additions during the period - 20,025 866,645 866,645 Less: provision for impairment - (123,680) Net balance at the end of the period 866,645 742,965 Development properties include land with a carrying value of AED 820,025 thousand (31 December 202 5: AED 696,345 thousand) pertaining to a subsidiary of the Bank. All development properties are located in the UAE. 25 Other assets 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Acceptances 864,935 965,822 Assets acquired in satisfaction of claims 178,217 193,817 Trade receivables 604,135 549,593 Prepaid expenses 2,010,884 1,339,586 Accrued profit 936,774 1,019,435 Positive fair value of Shari’a compliant alternatives of derivative financial instruments 10,279 13,774 Others, net 1,693,201 1,543,502 6,298,425 5,625,529 Assets acquired in exchange for claims in order to achieve an orderly realization are recorded as “Assets acquired in satisfaction of claims”. The asset acquired is recorded at the lower of its fair value less costs to sell and the carrying amount of the claim (net of provision for impairment) at the date of exchange.
Page 31
ABU DHABI ISLAMIC BANK PJSC 29 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 26 Goodwill and intangibles Goodwill Core deposit License Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 At 1 January 2025 - audited 193,073 76,076 140,719 409,868 Exchange translation differences 45,915 7,151 9,275 62,341 Amortisation during the year - (9,338) - (9,338) At 1 January 2026 - audited 238,988 73,889 149,994 462,871 Exchange translation (10,784) (9,660) (12,530) (32,974) Amortisation during the period - (6,834) - (6,834) At 30 September 2026 - unaudited 228,204 57,395 137,464 423,063 27 Due to financial institutions 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Current accounts 2,899,106 2,471,294 Investment deposits 1,278,129 3,849,801 Collateralised murabaha with banks 11,286,865 3,363,553 15,464,100 9,684,648 The collateral provided against these collateralised murabaha are disclosed in note 20 and note 21. 28 Depositors’ accounts 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Current accounts 59,124,076 57,318,734 Investment accounts 198,821,964 171,002,626 Investment risk reserve 781,356 774,934 258,727,396 229,096,294
Page 32
ABU DHABI ISLAMIC BANK PJSC 30 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 28 Depositors’ accounts (continued) The movement in the investment risk reserve during the period was as follows: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) At the beginning of the period 774,934 737,298 Share of profit / paid during the period 6,422 37,636 At the end of the period 781,356 774,934 The distribution of the depositors’ accounts by industry sector was as follows: Government 41,102,100 32,149,734 Public sector 39,927,895 24,683,901 Corporates 29,680,177 29,419,108 Financial institutions 5,967,267 4,073,612 Individuals 109,220,807 107,283,328 Small and medium enterprises 28,698,041 27,379,630 Non-profit organisations 4,131,109 4,106,981 258,727,396 229,096,294 The Bank invests all of its investment accounts including saving accounts, adjusted for UAE , Egypt and Iraq Central Bank reserve requirements and the Group’s liquidity requirements. With respect to investment deposits, the Bank is liable only in case of misconduct, negligence or breach of contract otherwise it is on the account of the fund’s provider (Rab Al Mal) or the principal (the Muwakkil). 29 Other liabilities 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Accounts payable 610,603 695,229 Acceptances 864,935 965,822 Lease liabilities 177,416 174,928 Accrued profit for distribution to depositors and sukuk holders 1,093,154 806,120 Bankers’ cheques 1,457,885 1,421,945 Provision for staff benefits and other expenses 549,456 642,875 Retentions payable 173,195 127,679 Advances from customers 70,407 76,619 Accrued expenses 302,299 361,536 Deferred income 491,637 461,178 Negative fair value of Shari’a compliant alternatives of derivative financial instruments Others 35,086 1,989,614 25,642 2,006,763 7,815,687 7,766,336
Page 33
ABU DHABI ISLAMIC BANK PJSC 31 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 30 Sukuk financing instrument 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Sukuk financing instrument 1,836,250 1,836,250 In November 2023, the Bank through a AAOIFI Shari’a compliant sukuk arrangement, raised medium term green sukuk amounting to AED 1,836,250 thousand (USD 500 million) under a USD 5 billion programme. The sukuk are listed on the London Stock Exchange’s International Securities Market (ISM) and the Abu Dhabi Securities Exchange (ADX). The sukuk will mature in November 2028. The sukuk deserved rental proceeds are distributed in accordance with expected profit rate. Terms of arrangement The terms of the arrangement include transfer of the ownership of certain assets (the “Ijarah Assets"), from identified ijara financing assets in the portfolio of the Bank, to a sukuk company, ADIB Sukuk Company II Ltd - the Issuer, a subsidiary of the Bank, specially formed for the sukuk transaction. The assets are owned by the Sukuk holders , however the assets are controlled by the Bank and shall continue to be serviced by the Bank as the Servicing agent. The issuer will pay the quarterly distribution amount from rental proceeds generated and received from the Ijarah Assets. Such proceeds are expected to be sufficient to cover the quarterly distribution amount payable to the sukuk holders on the quarterly distribution dates. Upon maturity of the sukuk, the Bank has undertaken to repurchase the Ijarah Assets at an exercise price, specified in the relevant Purchase Undertaking. 31 Share capital 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Authorised share capital: 4,000,000 thousand (2025: 4,000,000 thousand) ordinary shares of AED 1 each (2025: AED 1 each) 4,000,000 4,000,000 Issued and fully paid share capital: 3,632,000 thousand (2025: 3,632,000 thousand) ordinary shares of AED 1 each (2025: AED 1 each) 3,632,000 3,632,000
Page 34
ABU DHABI ISLAMIC BANK PJSC 32 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 32 Other reserves Cumulative changes in fair values Land revaluation reserve Foreign currency translation reserve Hedging reserve Impairment reserve - General Others Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 At 1 January 2026 - audited (226,114) 137,400 (1,597,793) - 626,424 7,262 (1,052,821) Net movement in valuation of equity investment carried at FVTOCI -net of tax (26,829) - - - - - (26,829) Net movement in valuation of investment in sukuk carried at FVTOCI – net of tax (49,583) - - - - - (49,583) Exchange differences arising on translations of foreign operations - - (159,239) - - - (159,239) Gain on hedge of foreign operations - - 2,318 - - - 2,318 Fair value gain on cash flow hedges - - - - - - - Net movement in impairment reserve – General - - - - 516,782 - 516,782 Net movement in other reserves - - - - - (6,106) (6,106) At 30 September 2026 - unaudited (302,526) 137,400 (1,754,714) - 1,143,206 1,156 (775,478) At 1 January 2025 - audited (331,204) 137,400 (1,690,718) (3,341) 331,186 (3,314) (1,559,991) Net movement in valuation of equity investment carried at FVTOCI-net of tax (11,064) - - - - - (11,064) Net movement in valuation of investment in sukuk carried at FVTOCI-net of tax 87,590 - - - - - 87,590 Loss on disposal of investments carried at FVTOCI 28,998 - - - - - 28,998 Exchange differences arising on translation of foreign operations - - 81,167 - - - 81,167 Loss on hedge of foreign operations - - (8,010) - - - (8,010) Fair value gain on cash flow hedges - - - 3,341 - - 3,341 Net movement in impairment reserve – General - - - - 329,568 - 329,568 Net movement in other reserves - - - - - 7,125 7,125 At 30 September 2025 - unaudited (225,680) 137,400 (1,617,561) - 660,754 3,811 (1,041,276)
Page 35
ABU DHABI ISLAMIC BANK PJSC 33 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 33 Tier 1 sukuk 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Tier 1 sukuk – Listed (third issue) 2,754,375 2,754,375 Tier 1 sukuk – Government of Abu Dhabi 2,000,000 2,000,000 4,754,375 4,754,375 Tier 1 sukuk – Listed (third issue) On 18 July 2023, the Bank through a Shari'a compliant sukuk arrangement has issued Tier 1 sukuk – Listed (third issue) (the "Sukuk") amounting to AED 2,754,375 thousand (USD 750 million). This Sukuk was issued under the authorities approved by the shareholders of the Bank in the Annual General Meeting held on 06 March 2023. Issuance costs amounting to AED 12,305 thousand were incurred at the time of issuance. This Sukuk is a perpetual security in respect of which there is no fixed redemption date and constitute direct, unsecured, subordinated obligations of the Bank upon its conclusion subject to the terms and conditions of the mudaraba. The sukuk is listed on the London Stock Exchange's International Securities Market (ISM) and is callable by the Bank after period ending on 18 January 2029 (the “First Call Date”) or any achieved profit payment date thereafter subject to certain conditio ns. The Sukuk bear an expected m udaraba profit rate of 7.25%, such achieved profit is payable during the initial period of five and half years semi -annually in arrears. After the initial period, and for every 5th year thereafter, resets to a new expected m udaraba profit rate based on the then 5.5 year US treasury rate plus an expected margin of 3.059%. Profit distributions will be reported in the consolidated statement of changes in equity. The Bank may, at its sole discretion, elect not to make any mudaraba profit distributions as expected and the event is not considered an event of default. If the Bank makes a non- payment election or a non- payment event occurs, then the Bank will not (a) declare or pay any distribution or dividend or (b) redeem, purchase, cancel, reduce or otherwise acquire any of the share capital or any securities of the Bank ranking pari passu with or junior to the Sukuk except securities, the term of which stipulate a mandatory redemption or conversion into equity, in each case unless or until the occurrence of the next following payment of expected m udaraba profit distribution.
Page 36
ABU DHABI ISLAMIC BANK PJSC 34 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 33 Tier 1 sukuk (continued) Tier 1 sukuk – Government of Abu Dhabi On 16 April 2009, under the Government of Abu Dhabi Bank capitalisation programme, the Bank has issued Tier 1 sukuk (the "Sukuk-Gov") to the Department of Finance of the Government of Abu Dhabi, with a principal investment amount of AED 2,000,000 thousand. Issuance of this Sukuk- Gov was approved by the shareholders of the Bank in the Extraordinary General Meeting held on 22 March 2009. On 15 December 2021, amended and restated Mudaraba Agreement was signed to make the Sukuk- Gov compliant with Basel 3. This Sukuk-Gov is a perpetual security in respect of which there is no fixed redemption date and constitute direct, unsecured, subordinated obligations of the Bank subject to the terms and conditions of the Mudaraba. Based on the amended and restated Mudaraba Agreement dated 15 December 2021, t he Sukuk-Gov is callable by the Bank after period ending on 16 April 2027 (the “Call Date”) or any achieved profit payment date thereafter subject to certain conditions. The Sukuk- Gov had an expected mudaraba profit rate of 6% payable during the initial period of five years semi - annually in arrears. The initial period of five years ended on 16 April 2014. After the initial period, Sukuk-Gov bear an expected variable mudaraba profit rate payable of 6 months EIBOR plus an expected margin of 2.3%. Profit distributions will be reported in the consolidated statement of changes in equity. No changes were made to expected mudaraba profit rates under the amended and restated Mudaraba Agreement dated 15 December 2021. The Bank may, at its sole discretion, elect not to make any Mudaraba profit distributions as expected and the event is not considered an event of default. If the Bank makes a non -payment election or a non- payment event occurs, then the Bank will not (a) declare or pay any distribution or dividend or (b) redeem, purchase, cancel, reduce or otherwise acquire any of the share ca pital or any securities of the Bank ranking pari passu with or junior to the Sukuk except securities, the term of which stipulate a mandatory redemption or conversion into equity, in each case unless or until the occurrence of two consecutive expected mudaraba profit distribution. 34 Contingent liabilities and commitments The Bank has the following credit related contingencies, commitments and other capital commitments: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Contingent liabilities Letters of credit 2,933,865 2,968,738 Letters of guarantee 15,167,798 12,704,509 18,101,663 15,673,247 Commitments Undrawn facilities commitments 4,859,853 4,038,564 Future capital expenditure 280,928 247,632 5,140,781 4,286,196 23,242,444 19,959,443
Page 37
ABU DHABI ISLAMIC BANK PJSC 35 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 35 Cash and cash equivalents Nine months ended 30 September Nine months ended 30 September 2026 2025 (unaudited) (unaudited) Cash and balances with central banks, short term 10,179,307 11,355,229 Balances and wakala deposits with Islamic banks and other financial institutions, short term 5,799,392 8,055,790 Murabaha and mudaraba with financial institutions, short term - 45,282 15,978,699 19,456,301 36 Related party transactions In the ordinary course of its activities, the Bank enters into transactions with related parties, comprising major shareholder, directors, associates and joint ventures, key management and their related parties in the ordinary course of business on terms agreed between the parties on arm’s length basis. The Bank obtains collateral, including charges over real estate properties and securities, the extent of which is dependent on the Bank's assessment of the credit risk of the related party. All transactions with related parties are free of any specific provision for impairment. Transactions between the Bank and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. During the period , significant transactions with related parties included in the condensed consolidated interim statement of profit or loss were as follows: Directors and Major Key management Associates and joint shareholder personnel ventures Others Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2026 - unaudited Income from murabaha, mudaraba and wakala with financial institutions - - 11,705 - 11,705 Income from murabaha, mudaraba, ijara and other Islamic financing from customers 54,421 197 10,449 105,696 170,763 Fees and commission income, net 1 278 23 1,654 1,956 Operating expenses - 657 - - 657 Distribution to depositors and sukuk holders 964 449 562 324 2,299
Page 38
ABU DHABI ISLAMIC BANK PJSC 36 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 36 Related party transactions (continued) Directors and Major Key management Associates and joint Shareholder personnel ventures Others Total 30 September 2025 - unaudited AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Income from murabaha, mudaraba and wakala with financial institutions - - 8,561 - 8,561 Income from murabaha, mudaraba, ijara and other Islamic financing from customers 31,403 7 11,065 62,465 104,940 Fees and commission income, net 1 38 21 2,313 2,373 Operating expenses - 618 - - 618 Distribution to depositors and sukuk holders 298 632 1,303 251 2,484 The related party balances included in the condensed consolidated interim statement of financial position were as follows: Directors and Major Key management Associates and joint shareholder personnel ventures Others Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2026 - unaudited Murabaha and mudaraba with financial institutions - - 201,939 - 201,939 Murabaha, mudaraba, ijara and other Islamic financing 2,067,325 19,202 250,889 4,029,178 6,366,594 Other assets - - 15,496 9,642 25,138 2,067,325 19,202 468,324 4,038,820 6,593,671 Due to financial institutions - - 24 - 24 Depositors’ accounts 3,529 30,445 39,473 78,706 152,153 Other liabilities - 46 122 9,808 9,976 3,529 30,491 39,619 88,514 162,153 Contingencies - 788 9,906 120,560 131,254 31 December 2025 - audited Murabaha and mudaraba with financial institutions - - 203,786 - 203,786 Murabaha, mudaraba, ijara and other Islamic financing 2,073,236 25,558 248,807 4,018,890 6,366,491 Other assets - - 38,693 9,642 48,335 2,073,236 25,558 491,286 4,028,532 6,618,612 Due to financial institutions - - 197 - 197 Depositors’ accounts 3,259 24,974 42,443 49,236 119,912 Other liabilities - 113 243 9,895 10,251 3,259 25,087 42,883 59,131 130,360 Contingencies - 788 10,000 121,123 131,911
Page 39
ABU DHABI ISLAMIC BANK PJSC 37 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 36 Related party transactions (continued) Compensation of key management personnel The compensation of key management personnel during the period was as follows: Nine months ended 30 September Nine months ended 30 September 2026 2025 (unaudited) (unaudited) Salaries and other benefits 24,508 23,221 Employees’ end of service benefits 2,440 1,890 26,948 25,111 During 2026, AED 18,900 thousand was paid to Board of Directors pertaining to the year ended 31 December 202 5 after the approval by the shareholders at the Annual General Assembly held on 04 March 2026. During 2025, AED 16,100 thousand was paid to Board of Directors pertaining to the year ended 31 December 2024 after the approval by the shareholders at the Annual General Assembly held on 10 March 2025. 37 Segment information Operating segments are identified on the basis of internal reports about the components of the Group that are regularly reviewed by the chief operating decision makers of the Bank in order to allocate resources to the segment and to assess its performance. Information reported to the chief operating deci sion makers for the purpose of resource allocation and assessment of performance is based on following strategic business units offering products and services to the different markets. Global Retail banking - Principally handling small and medium businesses and individual customers’ deposits, providing consumer and commercial murabahat, Ijara, Islamic covered card and funds transfer facilities and trade finance facilities. Global Wholesale banking – Principally handling financing and other credit facilities and deposits and current accounts for corporate and institutional customers. Private banking - Principally handling financing and other credit facilities, deposits and current accounts for high net worth individual customers. Treasury – Principally handling money market, trading and treasury services, as well as the management of the Bank's funding operations by use of investment deposits. Real estate – Subsidiaries of the Bank handling the acquisition, selling, development and leasing including both land and buildings, management and resale of properties and all associated activities. Associates and Subsidiaries – Include Banks subsidiaries (not included above), associates and joint ventures, operating within and outside UAE. Other operations - Other operations comprises mainly of Head Office including unallocated costs. Management monitors the operating results of the operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss.
Page 40
ABU DHABI ISLAMIC BANK PJSC 38 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 37 Segment information (continued) Global Global retail wholesale Private Real Other Associates banking banking banking Treasury estate operations & subsidiaries Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2026 - unaudited Revenue and results Segment revenues, net 4,787,884 1,570,190 211,297 753,321 121,692 474,981 1,794,413 9,713,778 Operating expenses excluding provision for impairment, net (1,855,172) (232,257) (65,150) (35,767) (55,774) (173,735) (412,737) (2,830,592) Operating profit 2,932,712 1,337,933 146,147 717,554 65,918 301,246 1,381,676 6,883,186 Provision for impairment, net (393,140) (113,770) (7,719) (20,185) 123,681 71,524 (111,020) (450,629) Profit for the period before tax 2,539,572 1,224,163 138,428 697,369 189,599 372,770 1,270,656 6,432,557 Tax - (19,669) - - (2,624) (437,713) (363,843) (823,849) Profit for the period after tax 2,539,572 1,204,494 138,428 697,369 186,975 (64,943) 906,813 5,608,708 Non-controlling interest - - - - - - (352,492) (352,492) Profit for the period attributable to equity holders of the Bank 2,539,572 1,204,494 138,428 697,369 186,975 (64,943) 554,321 5,256,216 Assets Segmental assets 126,433,674 93,908,490 6,460,350 48,443,139 2,318,334 4,913,005 35,164,780 317,641,772 Liabilities Segmental liabilities 117,252,412 90,835,533 17,073,807 24,168,977 73,424 4,871,770 29,567,510 283,843,433
Page 41
ABU DHABI ISLAMIC BANK PJSC 39 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 37 Segment information (continued) Global Global retail wholesale Private Real Other Associates banking banking banking Treasury estate operations & subsidiaries Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2025 – unaudited Revenue and results Segment revenues, net 4,419,914 1,491,969 190,497 552,547 78,914 960,197 1,454,284 9,148,322 Operating expenses excluding provision for impairment, net (1,748,314) (220,290) (64,506) (33,638) (48,340) (152,628) (317,475) (2,585,191) Operating profit 2,671,600 1,271,679 125,991 518,909 30,574 807,569 1,136,809 6,563,131 Provision for impairment, net (413,571) (72,165) 611 (5,223) - 79,836 (100,601) (511,113) Profit for the period before tax 2,258,029 1,199,514 126,602 513,686 30,574 887,405 1,036,208 6,052,018 Tax - (34,381) - - (2,631) (443,537) (255,745) (736,294) Profit for the period after tax 2,258,029 1,165,133 126,602 513,686 27,943 443,868 780,463 5,315,724 Non-controlling interest - - - - - - (298,876) (298,876) Profit for the period attributable to equity holders of the Bank 2,258,029 1,165,133 126,602 513,686 27,943 443,868 481,587 5,016,848 31 December 2025 - audited Assets Segmental assets 111,630,704 80,199,305 5,586,018 46,258,070 2,128,782 5,326,153 29,624,116 280,753,148 Liabilities Segmental liabilities 116,390,631 70,446,777 16,410,393 15,425,172 77,337 4,825,055 24,808,163 248,383,528
Page 42
ABU DHABI ISLAMIC BANK PJSC 40 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 37 Segment information (continued) Geographical information The Group operates in two principal geographic areas that are domestic and international. The United Arab Emirates is designated as domestic area which represents the operations of the Group that originates from the U.A.E. branches, associates and subsidia ries; and international area represents the operations of the Bank that originates from its branches in Iraq, Qatar and Sudan and through its subsidiaries and associates outside U.A.E. Nine months Nine months ended ended 30 September 30 September 2026 2025 (unaudited) (unaudited) Domestic International Total Domestic International Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Revenue and results Segment revenues, net 7,850,429 1,863,349 9,713,778 7,569,151 1,579,171 9,148,322 Operating expenses excluding provision for impairment, net (2,384,457) (446,135) (2,830,592) (2,239,754) (345,437) (2,585,191) Operating profit 5,465,972 1,417,214 6,883,186 5,329,397 1,233,734 6,563,131 Provision for impairment, net (305,964) (144,665) (450,629) (444,702) (66,411) (511,113) Profit for the period before tax 5,160,008 1,272,549 6,432,557 4,884,695 1,167,323 6,052,018 Tax (447,459) (376,390) (823,849) (452,099) (284,195) (736,294) Profit for the period after tax 4,712,549 896,159 5,608,708 4,432,596 883,128 5,315,724 Non-controlling interest (2,910) (349,582) (352,492) (2,423) (296,453) (298,876) Profit for the period attributable to equity holders of the Bank 4,709,639 546,577 5,256,216 4,430,173 586,675 5,016,848 30 September 31 December 2026 2025 (unaudited) (audited) Domestic International Total Domestic International Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 Assets Segmental assets 277,749,791 39,891,981 317,641,772 246,355,562 34,397,586 280,753,148 Liabilities Segmental liabilities 251,815,820 32,027,613 283,843,433 221,197,380 27,186,148 248,383,528
Page 43
ABU DHABI ISLAMIC BANK PJSC 41 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 38 Risk management Credit quality per stage for financial assets The details of gross exposure of financial assets and their expected credit losses per stages was as follows: Gross Exposure Expected credit losses - (ECL) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2026 - unaudited Cash and balances with central banks 36,660,712 1,462,194 - 38,122,906 650 4,186 - 4,836 Balances and wakala deposits with Islamic banks and other financial institutions 6,385,834 241,842 - 6,627,676 11,888 3,941 - 15,829 Murabaha and mudaraba with financial institutions 7,728,233 - - 7,728,233 48,459 - - 48,459 Murabaha and other Islamic financing 127,625,567 3,006,739 1,289,286 131,921,592 596,099 422,833 946,902 1,965,834 Ijara financing 81,615,660 1,791,352 3,135,817 86,542,829 398,621 90,652 1,461,147 1,950,420 Investment in sukuk measured at amortised cost 30,567,178 - 11,788 30,578,966 58,018 - 11,788 69,806 Investments measured at fair value 2,632,057 - 146 2,632,203 4,672 - 146 4,818 Other assets 1,115,276 71,325 - 1,186,601 13,391 3,275 - 16,666 294,330,517 6,573,452 4,437,037 305,341,006 1,131,798 524,887 2,419,983 4,076,668 Contingent liabilities and commitments 22,712,872 203,764 44,880 22,961,516 171,441 19,285 44,748 235,474 317,043,389 6,777,216 4,481,917 328,302,522 1,303,239 544,172 2,464,731 4,312,142
Page 44
ABU DHABI ISLAMIC BANK PJSC 42 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 38 Risk management (continued) Credit quality per stage for financial assets Gross Exposure Expected credit losses - (ECL) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 AED ‘000 31 December 2025 - audited Cash and balances with central banks 41,310,708 - - 41,310,708 526 - - 526 Balances and wakala deposits with Islamic banks and other financial institutions 4,622,509 - - 4,622,509 3,729 - - 3,729 Murabaha and mudaraba with financial institutions 7,303,119 - - 7,303,119 48,014 - - 48,014 Murabaha and other Islamic financing 108,786,384 2,626,671 1,119,980 112,533,035 590,705 386,442 803,836 1,780,983 Ijara financing 66,903,994 2,012,432 4,139,517 73,055,943 504,994 90,437 1,836,301 2,431,732 Investment in sukuk measured at amortised cost 26,752,930 - 11,788 26,764,718 38,719 - 11,788 50,507 Investments measured at fair value 2,909,950 - 19,612 2,929,562 4,586 - 19,611 24,197 Other assets 1,451,819 5,489 3,483 1,460,791 13,321 283 727 14,331 260,041,413 4,644,592 5,294,380 269,980,385 1,204,594 477,162 2,672,263 4,354,019 Contingent liabilities and commitments 18,602,571 646,188 463,052 19,711,811 133,238 11,712 49,861 194,811 278,643,984 5,290,780 5,757,432 289,692,196 1,337,832 488,874 2,722,124 4,548,830
Page 45
ABU DHABI ISLAMIC BANK PJSC 43 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 39 Capital adequacy ratio The Central Bank of the UAE sets and monitors capital requirements for the Group as a whole. The CBUAE issued Basel III capital regulations, which came into effect from 1 February 2017 introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (“ CET1”), Additional Tier 1 (“AT1”) and Total Capital. The additional capital buffers (Capital Conservation Buffer ( “CCB”) and Countercyclical Capital Buffer ( “CCyB”) maximum up to 2.5% for each buffer) introduced are over and above the minimum CET1 requirement of 7%. Basel III 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) Capital base Common Equity Tier 1 26,060,407 22,064,801 Additional Tier 1 capital 4,898,816 4,809,639 Tier 1 capital 30,959,223 26,874,440 Tier 2 capital 2,039,991 1,976,336 Total capital base 32,999,214 28,850,776 Risk weighted assets Credit risk 188,160,341 163,542,029 Market risk 2,620,115 1,925,065 Operational risk 20,102,241 18,170,293 Total risk weighted assets 210,882,697 183,637,387 Capital ratios Common Equity Tier 1 ratio 12.4% 12.0% Total Tier 1 capital ratio 14.7% 14.6% Total capital ratio 15.6% 15.7%
Page 46
ABU DHABI ISLAMIC BANK PJSC 44 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 40 Dividend During 2026 , cash dividend of 97.05 fils per share relating to year ended 31 December 2025 amounting to AED 3,524,856 thousand, was paid after the approval by the shareholders at the Annual General Assembly held on 4 March 2026. During 2025 , cash dividend of 83.43 fils per share relating to year ended 31 December 2024 amounting to AED 3,030,337 thousand, was paid after the approval by the shareholders at the Annual General Assembly held on 10 March 2025. 41 Fair value of financial instruments Fair value measurement recognized in the consolidated statement of financial position The Group uses the following hierarchy for determining and disclosing the fair value of financial instrument by valuation technique: Quoted market prices – Level 1 Financial instruments are classified as Level 1 if their values are observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions. Valuation techniques using observable inputs – Level 2 Financial instruments classified as Level 2 have been valued using models whose inputs are observable in an active market. Valuation based on observable inputs includes financial instruments such as Shari’a compliant alternatives of derivatives and forwards which are valued using market standard pricing techniques and options that are commonly traded in markets where all the inputs to the market standard pricing models are observable. Valuation techniques using significant unobservable inputs – Level 3 Financial instruments are classified as Level 3 if their valuation incorporates significant inputs that are not based on observable market data (unobservable inputs). A valuation input is considered observable if it can be directly observed from transactions in an active market. Unobservable input levels are generally determined based on observable inputs of a similar nature, historical observations or other analytical techniques. This hierarchy requires the use of observable market data when available. The Group considers relevant and observable market prices in its valuations where possible. Financial instruments under this category mainly include sukuk, private equity instruments and funds measured at FVTPL. The carrying values of these investments are adjusted as follows: a) Sukuk – using latest available information; and b) Private equity instruments and Funds – based on the latest available net book value and net asset value assessed internally or provided by fund managers. Investment properties are classified as Level 3 as their valuation incorporates significant unobservable inputs. The fair value of the properties has been determined either based on transactions observable in the market or valuation models. The valuation methodologies considered by valuers include: a) Comparison method: This method derives the value by analyzing recent sales transactions of similar properties in a similar location. b) Investment method: This method derives the value by converting the future cash flow to a single current capital value.
Page 47
ABU DHABI ISLAMIC BANK PJSC 45 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 41 Fair value of financial instruments (continued) The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to 3 based on the degree to which the fair value is observable. Level 1 Level 2 Level 3 Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 30 September 2026 - unaudited Assets and liabilities measured at fair value: Financial assets Investments carried at fair value through profit or loss Quoted investments 15,109 - - 15,109 Sukuk 1,605,833 - - 1,605,833 1,620,942 - - 1,620,942 Unquoted sukuk - - 332,135 332,135 1,620,942 - 332,135 1,953,077 Investments carried at fair value through other comprehensive income Quoted investments Equities 24,208 - - 24,208 Sukuk 2,632,203 - - 2,632,203 2,656,411 - - 2,656,411 Unquoted investments Sukuk - - - - Funds - - 520,037 520,037 Private equities - - 85,691 85,691 - - 605,728 605,728 2,656,411 - 605,728 3,262,139 4,277,353 - 937,863 5,215,216 Shari’a compliant alternatives of swap (note 25) - 10,279 - 10,279 Financial liabilities Shari’a compliant alternatives of swap (note 29) - 35,086 - 35,086 Assets for which fair values are disclosed: Investment properties - - 1,522,576 1,522,576 Investment carried at amortised cost - Sukuk 28,871,301 367,250 - 29,238,551 Assets acquired in satisfaction of claims - 215,879 - 215,879
Page 48
ABU DHABI ISLAMIC BANK PJSC 46 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 41 Fair value of financial instruments (continued) Level 1 Level 2 Level 3 Total AED ‘000 AED ‘000 AED ‘000 AED ‘000 31 December 2025 Assets and liabilities measured at fair value: Financial assets Investments carried at fair value through profit or loss Quoted investments 11,041 - - 11,041 Sukuk 956,995 - - 956,995 968,036 - - 968,036 Unquoted sukuk - - 332,135 332,135 968,036 - 332,135 1,300,171 Investments carried at fair value through other comprehensive income Quoted investments Equities 24,166 - - 24,166 Sukuk 2,886,305 - - 2,886,305 2,910,471 - - 2,910,471 Unquoted investments Sukuk - - 43,257 43,257 Funds - - 559,265 559,265 Private equities - - 117,399 117,399 - - 719,921 719,921 2,910,471 - 719,921 3,630,392 3,878,507 - 1,052,056 4,930,563 Shari’a compliant alternatives of swap (note 25) - 13,774 - 13,774 Financial liabilities Shari’a compliant alternatives of swap (note 29) - 25,642 - 25,642 Assets for which fair values are disclosed: Investment properties - - 1,728,171 1,728,171 Investment carried at amortised cost - Sukuk 26,028,563 368,689 - 26,397,252 Assets acquired in satisfaction of claims - 232,929 - 232,929 The carrying value and fair value for all the investments are same except for investments carried at amortised cost – sukuk and investment properties, whose carrying value is disclosed in note 20 and note 23 respectively. There were no transfers between level 1, 2 and 3 during the period (2025: Nil). The impact of the sensitivity of inputs to the valuation techniques used of the investments classified under Level 3 are immaterial.
Page 49
ABU DHABI ISLAMIC BANK PJSC 47 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 41 Fair value of financial instruments (continued) The following table shows a reconciliation of the opening and closing amount of level 3 of financial assets which are recorded at fair value: 30 September 31 December 2026 2025 AED ‘000 AED ‘000 (unaudited) (audited) . At the beginning of the period 1,052,056 726,437 (Settlements) / purchases (88,401) 310,419 (Loss) / gain through profit or loss / other comprehensive income statement recorded in equity (22,970) 14,056 Foreign currency translation (2,822) 1,144 At the end of the period 937,863 1,052,056 42 Regional geopolitical developments The current extraordinary circumstances, which began on 28 February 2026 have resulted in uncertainty in the global economic environment. This situation continues to unfold and has had secondary impacts globally, including disruption to certain business and economic activities. The Group’s business continuity, resilience arrangements and broader risk management framework remain in place to address potential risk and uncertainties arising from the evolving regional environment. The Group has taken into account relevant regulatory guidance, including support measures made available by the Central Bank of the UAE (“CBUAE”) under the Financial Institution Resilience Package (the “Package”) effective from 17 March 2026. The CBUAE's introduction of the Package reflects proactive measures to support stability and resilience during a period of heightened regional uncertainty further underscoring its commitment to the UAE banking system and the broader economy. The Group continues to monitor developments and assess their potential implications for its operating environment, sectoral exposures, and counterparty risk profile. As part of this assessment, exposures are reviewed on an ongoing basis across significant sectors and counterparties, particularly those operating in sectors that may be directly affected by the current circumstances. Specific measures undertaken by the Group include enhanced monitoring of vulnerable sectors and counterparties, targeted client outreach, portfolio reviews, and stress testing to assess the potential impact under different scenarios. The Group remains committed to supporting affected customers, where appropriate. Based on information available at the reporting date, relief measures introduced by the CBUAE were applied on a case- by-case basis, where applicable. The Group continues to assess the creditworthiness of affected obligors, and related stage migration is co nducted in accordance with the CBUAE Credit Risk Management Standards (“CRMS”), the Group’s internal policies and the requirements of IFRS 9. The Group has a dedicated IFRS 9 governance process and in determining of ECL as at 30 September 2026, the Group applied base ratings together with management overlays without broadly changing the macroeconomic forecast and model parameters. The impact of ECL in response to the geopolitical risk and corresponding volatility in financial markets were captured via management overlays. These overlays ensure that the Group’s ECL position remains robust and sufficient against potential portfolio deterioration. As at 30 September 2026, the Group's liquidity and funding ratios remained comfortably above applicable regulatory thresholds and the Group held sufficient high-quality liquid assets to meet obligations under stressed conditions. The Group continues to monitor liquidity and funding requirements closely and has calibrated its stress testing scenarios to reflect current market conditions.
Page 50
ABU DHABI ISLAMIC BANK PJSC 48 Notes to the condensed consolidated interim financial statements (continued) 30 September 2026 (unaudited) 43 Seasonality of results The nature of Group's business is such that the income and expenditure are incurred in a manner that is not impacted by seasonality. These condensed consolidated interim financial statements were prepared based upon accrual concept, which requires income and expenses to be recorded as earned or incurred and not as received or paid throughout the period. 44 Comparative figures Certain comparatives were reclassified to conform to the current period presentation. These reclassifications have had no impact on the total assets, total liabilities, total equity and profit of the Group . 45 Subsequent event On 6 October 2026, the shareholders at the general assembly meeting have approved a rights issue of 106,383 thousand shares of AED 1 each with a premium of AED 15.45 per share. The total amount of right s issue is AED 1,750,000 thousand.