Abu Dhabi Commercial Bank : 2025 Third Quarter Q3'25 Pillar III Disclosure

Abu Dhabi Commercial Bank PJSC

Pillar 3 Report

30 September 2025

Pillar 3 disclosures as at 30 September 2025

1

Table of Contents

1. Key Prudential Regulatory Metrics (at consolidated group level) 3

   1. Key metrics for the Group (KM1) 3

2. Risk Weighted Assets 4

   1. Overview of risk weighted assets (OV1) 4

3. Leverage Ratio 5

   1. Summary comparison of accounting assets versus leverage ratio exposure measure (LR1) 5

   2. Leverage ratio common disclosure (LR2) 6

4. Liquidity Coverage Ratio (LCR)(LIQ1) 7

1. ‌Key Prudential Regulatory Metrics (at consolidated group level)

   1. ‌Key metrics for the Group (KM1)

      The table below sets out the key regulatory metrics covering the Group's available capital (including buffer requirements and ratios), RWAs, Leverage ratio, LCR and NSFR.

      					AED '000
      	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24
      Available capital (amounts)
      Common Equity Tier 1 (CET1)	61,649,646	58,302,449	56,225,968	54,027,064	56,425,942
      Tier 1	70,404,396	67,057,199	64,980,718	62,781,814	65,180,692
      Total capital	77,644,379	74,135,239	71,767,852	69,394,083	71,813,433
      Total risk-weighted assets (RWA)	485,530,869	477,465,774	446,464,224	430,301,800	430,543,814
      Risk-based capital ratios as a percentage of RWA
      Common Equity Tier 1 ratio (%)	12.70%	12.21%	12.59%	12.56%	13.11%
      Tier 1 ratio (%)	14.50%	14.04%	14.55%	14.59%	15.14%
      Total capital ratio (%)	15.99%	15.53%	16.07%	16.13%	16.68%
      Additional CET1 buffer requirements as a
      percentage of RWA
      Capital conservation buffer requirement (2.5% from 2019) (%)	2.50%	2.50%	2.50%	2.50%	2.50%
      Counter - cyclical buffer requirement (%)**	0.09%	0.08%	0.10%	0.09%	0.08%
      Bank D-SIB additional requirements (%)	0.50%	0.50%	0.50%	0.50%	0.50%
      Total bank CET1 specific buffer requirements (%)	3.09%	3.08%	3.10%	3.09%	3.08%
      CET1 available for the buffer requirement (%)	5.49%	5.03%	5.57%	5.56%	6.11%
      Basel III Leverage Ratio
      Total Basel III leverage ratio measure	816,340,006	798,748,836	753,424,179	717,310,154	706,532,289
      Basel III leverage ratio (%)	8.62%	8.40%	8.62%	8.75%	9.23%
      Liquidity Coverage Ratio*
      Total HQLA	135,517,967	138,188,692	129,775,080	118,280,427	116,224,154
      Total net cash outflow	101,809,128	102,183,240	93,638,158	86,119,711	85,294,480
      LCR ratio (%)	133.11%	135.24%	138.59%	137.34%	136.26%
      Net Stable Funding Ratio
      Total available stable funding	447,831,920	433,929,163	413,929,945	396,615,695	383,791,965
      Total required stable funding	418,991,989	403,537,175	376,260,326	366,551,377	362,697,027
      NSFR ratio (%)	106.88%	107.53%	110.01%	108.20%	105.82%

      * LCR is calculated as at the end of each period rather than using average values. For average LCR, refer to table LIQ1.

      **Central Bank of UAE has introduced the countercyclical buffer (CCyB) requirment of 0.50% on private sector exposure in the UAE effective January 1, 2026.

2. ‌Risk Weighted Assets

   1. ‌Overview of risk weighted assets (OV1)

      AED '000

      RWA Minimum capital requirements *
      	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24
      Credit ris k (excluding counterparty credit ris k)	413,366,234	412,896,955	383,543,787	366,588,543	367,363,866	56,176,471	56,071,406	52,161,955	49,819,383	49,880,666
      Of which: standardised approach (SA)	413,366,234	412,896,955	383,543,787	366,588,543	367,363,866	56,176,471	56,071,406	52,161,955	49,819,383	49,880,666
      Of which: foundation internal ratings-based (F-IRB) approach	-	-	-	-	-	-	-	-	-	-
      Of which: supervisory slotting approach	-	-	-	-	-	-	-	-	-	-
      Of which: advanced internal ratings-based (A-IRB) approach	-	-	-	-	-	-	-	-	-	-
      Counterparty credit ris k (CCR)	11,367,925	10,880,365	8,417,122	7,804,190	8,860,085	1,544,901	1,477,554	1,144,729	1,060,589	1,203,022
      Of which: standardised approach for counterparty credit risk	11,367,925	10,880,365	8,417,122	7,804,190	8,860,085	1,544,901	1,477,554	1,144,729	1,060,589	1,203,022
      Of which: Internal Model Method (IMM)	-	-	-	-	-	-	-	-	-	-
      Of which: other CCR	-	-	-	-	-	-	-	-	-	-
      Credit valuation adjus tment (CVA)	7,496,726	7,304,866	6,105,545	6,377,110	6,737,342	1,018,805	992,001	830,354	866,649	914,796
      Equity positions under the simple risk weight approach	-	-	-	-	-	-	-	-	-	-
      Equity inves tments in funds - look-through approach	649,513	546,029	551,716	554,558	514,214	88,269	74,151	75,033	75,364	69,820
      Equity investments in funds - mandate-based approach	-	-	-	-	-	-	-	-	-	-
      Equity investments in funds - fall-back approach	-	-	-	-	-	-	-	-	-	-
      Settlement risk	-	-	-	-	-	-	-	-	-	-
      Securitis ation expos ures in the banking book	1,044,211	902,478	918,332	1,144,086	646,156	141,908	122,557	124,893	155,481	87,735
      Of which: securitisation internal ratings-based approach (SEC-IRBA)	-	-	-	-	-	-	-	-	-	-
      Of which: securitisation external ratings-based approach (SEC-ERBA), including internal assessment approach	447,479	263,512	-	-	-	60,812	35,785	-	-	-
      Of which: securitisation standardised approach (SEC-SA)	596,732	638,966	918,332	1,144,086	646,156	81,096	86,772	124,893	155,481	87,735
      Market ris k	16,525,302	11,368,846	14,540,714	16,502,183	16,909,251	2,245,789	1,543,889	1,977,537	2,242,647	2,295,938
      Of which: standardised approach (SA)	16,525,302	11,368,846	14,540,714	16,502,183	16,909,251	2,245,789	1,543,889	1,977,537	2,242,647	2,295,938
      Of which: internal model approaches (IMA)	-	-	-	-	-	-	-	-	-	-
      Capital charge for switch between trading book and banking book	-	-	-	-	-	-	-	-	-	-
      Operational ris k	35,080,957	33,566,235	32,387,007	31,331,130	29,512,900	4,767,502	4,558,295	4,404,633	4,257,901	4,007,262
      Amounts below thresholds for deduction (subject to 250% risk weight)	-	-	-	-	-	-	-	-	-	-
      Floor adjustment	-	-	-	-	-	-	-	-	-	-
      Total	485,530,869	477,465,774	446,464,224	430,301,800	430,543,814	65,983,645	64,839,852	60,719,134	58,478,015	58,459,240
      * Minimum capital requirement is arrived at by using capital adequacy ratio including all regulatory buffers on RWA for respective reporting periods (September 2025 -13.59% ).

3. ‌Leverage Ratio

   The Basel 3 leverage ratio is calculated by dividing the period-end tier 1 capital by the period-end leverage ratio denominator (LRD), as summarized in the tables below.

   1. ‌Summary comparison of accounting assets versus leverage ratio exposure measure (LR1)

      AED '000

      Summary comparison of accounting assets vs leverage ratio exposure measure	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24
      Total consolidated assets as per published financial statements	744,273,270	718,502,437	679,716,145	652,814,226	638,753,558
      Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation	(20,416)	(15,196)	(12,848)	(9,031)	(17,756)
      Adjustment for fiduciary assets recognised on the balance sheet pursuant to the operative accounting framework but excluded from the leverage ratio exposure measure	-	-	-	-	-
      Adjustments for derivative financial instruments	9,151,171	6,778,802	3,418,916	(395,627)	4,317,719
      Adjustment for securities financing transactions (ie repos and similar secured lending)	(2,738,899)	-	-	-	-
      Adjustment for off-balance sheet items (ie conversion to credit equivalent amounts of off-balance sheet exposures)	91,738,499	96,122,994	87,682,936	80,053,688	84,775,068
      Other adjustments*	(26,063,619)	(22,640,201)	(17,380,970)	(15,153,102)	(21,296,300)
      Leverage ratio exposure measure	816,340,006	798,748,836	753,424,179	717,310,154	706,532,289

      *Includes adjustments for acceptances and intangible assets. Acceptances are treated as off-balance sheet exposure.

      The LRD consists of IFRS on-balance sheet assets and off-balance sheet exposures. Derivative exposures are adjusted for a number of items, including replacement value and eligible cash variation margin netting, the current exposure method add-on and net notional amounts for written credit derivatives.

      The table on the next page shows the reconciliation between total IFRS assets and the BCBS total on-balance sheet exposures. IFRS assets are the starting point for calculating the BCBS LRD, as shown in the LR2 table in this section. The difference is due to the application of the regulatory scope of consolidation for the purpose of the BCBS calculation. In addition, carrying amounts for derivative financial instruments and securities financing transactions (SFTs) are deducted from IFRS total assets. They are measured differently under BCBS leverage ratio rules and are therefore added back in separate exposure line items in the LR2 table.

      ‌3.2 Leverage ratio common disclosure (LR2)
      					AED '000
      	30-Sep-25	30-Jun-25	31-Mar-25	31-Dec-24	30-Sep-24
      On-balance sheet On-balance sheet items (excluding derivatives and SFTs)	710,047,349	688,140,202	655,131,410	626,148,092	610,304,211
      Asset amounts deducted in determining Basel III Tier 1 capital	(7,670,532)	(7,685,292)	(7,689,394)	(7,469,188)	(7,449,753)
      Total on-balance sheet exposures, excluding derivatives and SFTs	702,376,817	680,454,910	647,442,016	618,678,904	602,854,458
      Derivative exposures (c + d)	22,224,689	22,170,932	18,299,228	18,577,561	18,902,762

      Replacement cost associated with all derivatives transactions (where applicable net of eligible cash variation margin and/or with bilateral netting) - (a)

      2,694,868 3,068,442 1,860,485 2,083,499 2,193,413

      Add-on amounts for PFE associated with all derivatives transactions - (b)	10,321,526	9,887,242	8,693,287	8,816,490	8,522,482
      CCR exposure for derivatives transactions [(1.4 times (a) + (b)] = (c)	18,222,951	18,137,957	14,775,280	15,259,984	15,002,252

      	-	-	-	-
      4,001,738	4,032,974	3,523,948	3,317,576	3,900,511
      -		-	-	-	-

      Gross-up for derivatives collateral provided where deducted from the balance sheet

      assets pursuant to the operative accounting framework -

      Adjusted effective notional amount of written credit derivatives - (d)

      Deductions of receivables assets for cash variation margin provided in derivatives transactions

      Exempted CCP leg of client-cleared trade exposures	-	-	-	-	-
      Adjusted effective notional offsets and add-on deductions for written credit derivatives Securities financing transaction exposures	- -	- -	- -	- -	-

      Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions

      - - - - -

      CCR exposure for SFT assets Agent transaction exposures Netted amounts of cash payables and cash receivables of gross SFT assets	- - -	- - -	- - -	- - -	- - -
      Other off-balance sheet exposures	91,738,499	96,122,994	87,682,936	80,053,688	84,775,067
      Other off-balance sheet exposure at gross notional amount	214,550,474	197,499,464	182,195,281	165,348,403	168,905,099
      Reduction in exposure due to conversion to credit equivalent amounts Capital and total exposures	(122,811,975)	(101,376,470)	(94,512,345)	(85,294,715)	(84,130,032)
      Tier 1 capital	70,404,395	67,057,200	64,980,718	62,781,814	65,180,692
      Total exposures	816,340,006	798,748,836	753,424,179	717,310,154	706,532,289
      Leverage ratio	8.62%	8.40%	8.62%	8.75%	9.23%

4. ‌Liquidity Coverage Ratio (LCR)(LIQ1)

The LCR is designed to promote short-term resilience of 30 calendar day liquidity profile, by ensuring that banks have sufficient HQLA to meet potential outflows in a stressed environment.

	30-Sep-25 30-Jun-25 31-Mar-25 31-Dec-24 30-Sep-24
	Total	Total
Total	weighted	unweighted	Total	Total	Total	Total	Total	Total Total
unweighted	value	value	weighted value	unweighted	weighted value	unweighted	weighted value	unweighted weighted value
value (90 days	(90 days-	(90 days-	(90 days-	value (90 days-	(90 days-	value (90 days-	(90 days-	value (90 days- (90 days-
average)	average)	average)	average)	average)	average)	average)	average)	average) average)

AED '000

High-quality liquid assets Total HQLA	149,147,384	137,644,314	139,591,833	128,329,959	134,875,918	124,181,928	122,492,152	112,391,069	121,797,297	112,329,989
Cash outflows
Retail deposits and deposits from small
business customers, of which:
Stable deposits	96,151,104	4,807,555	91,372,783	4,568,639	84,511,621	4,225,581	81,375,581	4,068,779	78,463,948	3,923,197
Less stable deposits	49,692,539	1,738,205	50,453,390	1,649,622	49,268,196	1,495,494	48,335,437	1,357,520	48,089,473	1,283,290
Unsecured wholesale funding, of which:
Operational deposits (all counterparties) and deposits in networks of cooperative banks	22,092,621	5,523,155	21,778,001	5,444,500	20,553,716	5,138,429	19,237,926	4,809,482	19,233,809	4,808,452
Non-operational deposits (all counterparties)	152,949,441	71,329,437	138,837,630	63,403,413	128,347,187	60,198,964	123,347,213	59,117,675	115,908,364	55,044,124
Unsecured debt	-	-	-	-	-	-	-	-	-	-
Secured wholesale funding	5,074,916	2,022,757	7,713,643	1,145,092	5,596,900	1,383,236	5,357,773	1,275,938	6,767,042	2,053,231
Additional requirements, of which:									-	-
Outflows related to derivative exposures and other collateral requirements	16,047,135	14,730,740	12,586,259	11,289,762	8,844,536	7,560,906	9,087,558	7,801,896	10,153,016	8,882,723
Outflows related to loss of funding of debt products	48,615	48,616	36,379	36,380	19,679	19,680	84,309	84,310	34,952	34,953
Credit and liquidity facilities	186,352,013	33,999,638	174,558,339	32,630,918	163,980,464	31,004,894	154,692,200	28,522,251	146,914,432	26,316,042
Other contractual funding obligations	-	-	-	-	-	-	-	-	-	-
Total cash outflows	528,408,384	134,200,103	497,336,424	120,168,326	461,122,299	111,027,183	441,517,997	107,037,849	425,565,036	102,346,012
Cash inflows
Secured lending (eg reverse repo)	(48,307)	(48,307)	457,573	457,573	768,270	698,567	537,306	422,413	510,853	481,928
Inflows from fully performing exposures	14,034,849	11,449,902	15,605,080	12,557,648	17,641,626	12,650,497	14,179,519	11,356,243	15,636,040	11,845,706
Other cash inflows	14,631,717	14,631,717	11,827,914	11,827,914	10,598,065	10,598,065	10,072,073	10,072,073	10,156,265	10,156,265
Total cash inflows	28,618,259	26,033,312	27,890,567	24,843,136	29,007,961	23,947,128	24,788,898	21,850,729	26,303,158	22,483,899

	Total adjusted value	Total adjusted value	Total adjusted value	Total adjusted value	Total adjusted value
Total HQLA	137,644,314	128,329,959	124,181,928	112,391,069	112,329,989
Total net cash outflows	108,166,790	95,325,190	87,080,055	85,187,120	79,862,114
Liquidity coverage ratio (%)	127.32%	134.75%	142.82%	132.09%	140.73%