PUBLIC

June 2026

Management’s Discussion and Analysis
and Condensed Quarterly Financial Statements:
31 March 2026
(Unaudited)

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CONTENTS

Page

MANAGEMENT'S DISCUSSION AND ANALYSIS

Executive Summary

FINANCIAL STATEMENTS

MANAGEMENT’S DISCUSSION AND ANALYSIS

EXECUTIVE SUMMARY

Under Strategy 2030, which sets the direction for the Asian Development Bank (ADB) to respond effectively to the changing needs of Asia and the Pacific, ADB continues to sustain its efforts to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. In its Strategy 2030 Midterm Review,¹ ADB approved an ambitious new road map to guide its evolution and scale up its support on key challenges facing Asia and the Pacific.

During the first three months of 2026, ADB delivered total commitments of $2.3 billion ($2.0 billion – 2025) and disbursements of $5.0 billion ($4.7 billion – 2025).²

Financial Results: Ordinary capital resources (OCR) reported net income of $536 million ($327 million – 2025) and allocable net income of $320 million ($332 million – 2025) for the three months ended 31 March 2026. Allocable net income (a non-GAAP measure) decreased primarily due to higher administrative expenses and provision for credit losses, partially offset by higher income (net of funding cost) from lending operations (loans and other debt securities), and revenue from equity investments, excluding unrealized gains on equity method investments. Net income increased due to the higher unrealized gains from fair value changes of financial instruments.

As of 31 March 2026, loans outstanding balance was $162.6 billion, a $1.6 billion increase from $161.1 billion at 31 December 2025. Liquidity investments after swaps increased by $2.5 billion to $63.3 billion as of 31 March 2026 from $60.8 billion at the end of 2025. Borrowings after swaps increased by $4.2 billion to $173.9 billion as of 31 March 2026 from $169.7 billion at the end of 2025. For the three months ended 31 March 2026, ADB issued $20.9 billion bonds ($18.5 billion – 2025).

Change in Presentation of Derivatives Instruments: Effective 31 March 2026, ADB changed the presentation of derivative instruments on the balance sheet to align with prevailing market practice. Under this approach, derivative asset and liability positions, and the related cash collateral received, are presented net at the counterparty level where a legally enforceable master netting agreement exists and the applicable offsetting criteria under US GAAP are met.

Allocation of 2025 Net Income:³ In May 2026, the Board of Governors approved ADB’s 2025 financial statements and the allocation of 2025 OCR net income during the ADB’s 59th Annual Meeting. The 2025 allocable net income of $1,460 million was allocated as follows: OCR’s ordinary reserve ($926 million), the Asian Development Fund ($394 million), the Technical Assistance Special Fund ($130 million), and the Asia Pacific Disaster Response Fund ($10 million).

I.           OVERVIEW

The Asian Development Bank (ADB), a multilateral development bank, was established in 1966 under the Agreement Establishing the Asian Development Bank (the Charter).¹ ADB is owned by 69 members, 50 of which are regional members providing 63.7% of its capital and 19 nonregional members providing 36.3% of its capital.

ADB provides various forms of financial assistance to its developing member countries (DMCs). The main instruments are loans, technical assistance (TA), grants, guarantees, and equity investments. These instruments are funded through ordinary capital resources (OCR), Special Funds, and trust funds. The Charter requires that funds from each resource be kept and used separately. Trust funds are generally funded by contributions and administered by ADB as the trustee.

ADB also offers debt management products to its sovereign and sovereign-guaranteed borrowers and entities fully guaranteed by members such as interest rate swaps and cross currency swaps (including local currency swaps) for their third-party liabilities. In addition, ADB provides policy dialogue and transaction advisory services to its DMCs and private sector clients to promote public–private partnerships in the region, and mobilizes financial resources through its cofinancing operations, which access official and other concessional, commercial, and export credit sources to maximize the development impact of its assistance. Cofinancing for ADB projects can be in the form of external loans, grants for TA and components of loans, equity investments, and credit enhancement products such as guarantees and syndications.

ADB continued to focus on implementing Strategy 2030, its long-term corporate strategy, to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. During the first three months of 2026, ADB delivered total commitments of $2.3 billion ($2.0 billion – 2025) and total disbursements of $5.0 billion ($4.7 billion – 2025).²

In February 2025, ADB approved a plan to scale up its operations by 50% over the next decade, leveraging its existing capital base to enhance its development impact across Asia and the Pacific.³ Under the Capital Utilization Plan, ADB will increase its annual financing commitments from $24 billion in 2024 to more than $36 billion by 2034.

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II.           ORDINARY CAPITAL RESOURCES

OCR provides financial assistance to sovereign and nonsovereign borrowers in DMCs in the form of loans, equity investments, and other debt securities. In addition to direct lending, OCR also provides guarantees to assist DMC governments and nonsovereign borrowers in securing commercial funds for ADB projects and provides transaction advisory services to sovereign and nonsovereign clients.

Funding of OCR lending, investment and other ordinary operations comes from three distinct sources: borrowings from the capital markets and private placements; paid-in capital provided by shareholders; and accumulated retained income (reserves). To fund its OCR operations, ADB issues debt securities in the international and domestic capital markets. ADB debt securities carry the highest possible investment ratings from three major international credit rating agencies. The funding strategy is aimed at ensuring availability of funds for operations at the most stable and lowest possible cost. Such strategy has enabled OCR to achieve cost-efficient funding levels for its borrowing members.

A. Basis of Financial Reporting

ADB’s basis of financial reporting are (i) statutory reporting, which is in accordance with accounting principles generally accepted in the United States (US GAAP) reporting requirements, and (ii) management reporting, which is used as the primary measure to make financial management decisions and to monitor key financial ratios. The key financial performance indicator under these two bases is net income for statutory reporting and allocable net income for management reporting.

Statutory reporting. ADB prepares OCR financial statements in accordance with US GAAP. ADB manages its balance sheet by selectively using derivatives to minimize interest rate and currency risks associated with its financial instruments. Derivatives are used to enhance asset and liability management of individual positions and overall portfolios. ADB has elected not to define any qualifying hedging relationships, not because economic hedges do not exist, but rather because the application of hedging criteria under the accounting standards does not make fully evident ADB’s risk management strategies.

ADB reports all derivative instruments on the balance sheet at fair value and recognizes the changes in fair value for the year as part of net income. To apply a consistent accounting treatment between the borrowings and their related swaps, ADB elects to measure all borrowings that are swapped or are intended to be swapped in the future at fair value. All investments for liquidity purpose, other debt securities classified as available for sale, and equity investments (except for those accounted for under the equity method) are reported at fair value. ADB reports its loans, other debt securities classified as held-to-maturity, and the remaining borrowings at amortized cost.

Effective 31 March 2026, ADB has elected to change the presentation of derivative instruments on the balance sheet to net derivative asset and liability positions by counterparty, including related cash collateral, when subject to legally enforceable master netting agreements and when the conditions set out in ASC Topic 210-20, Balance Sheet—Offsetting, are met. Historically, ADB reported derivative instruments on the balance sheet based on how the instruments were settled: individual interest rate swaps on a net basis, while all other swaps, including currency swaps and foreign exchange (FX) swaps, on a gross basis. This change aligns ADB’s balance sheet presentation with prevailing market practice. This change has been implemented in the current period and has also been applied to the prior period figures for consistency and comparability.

Management reporting (non-GAAP measure). ADB also reports OCR financial results based on internal management reporting basis which is used as the primary measure to make financial management decisions and to monitor key financial ratios.

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ADB reports allocable net income, which is defined as net income after appropriation of net guarantee fees to special reserve and certain adjustments reported in the cumulative revaluation adjustments account.⁴ The cumulative revaluation adjustments account sets aside the impact of unrealized gains or losses from fair value changes associated with certain financial instruments and from translation adjustments of non-functional currencies, and unrealized gains or losses from equity investments accounted for under the equity method.

ADB intends to hold most borrowings and swaps until maturity or call, hence interim net unrealized gains and losses reported under the statutory reporting basis will generally converge with the net realized income and expenses that ADB recognizes over the life of these financial instruments.

For equity investments, ADB generally holds its investments until ADB’s development role has been fulfilled. Any gains or losses from equity investments recorded at fair value are realized and are deemed available for allocation when ADB exits the investments. Therefore, the periodic net unrealized gains or losses are excluded from the allocable net income until the exit date.

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B. Overall Financial Results

OCR reported net income of $536 million ($327 million – 2025) and allocable net income of $320 million ($332 million – 2025) for the three months ended 31 March 2026. Table 1 presents the overall financial results for the three months ended 31 March 2026 and 2025.

Table 1: Overall Financial Results for the Three Months Ended 31 March

($ million)

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Net income. Net income for the three months ended 31 March 2026 increased to $536 million, from $327 million reported in 2025, mainly because of the higher unrealized gains from fair value changes of financial instruments.

Allocable net income.⁵ OCR allocable net income for the three months ended 31 March 2026 decreased to $320 million from $332 million in 2025, driven by higher administrative expenses and provision for credit losses, partially offset by higher income (net of funding cost) from lending operations (loans and other debt securities), and revenue from equity investments, excluding unrealized gains on equity method investments.

The change in net income and allocable net income were driven by the following factors.

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Table 2: Details of Net Unrealized Gains (Losses)
for the Three Months Ended 31 March

($ million)

Selected Financial data. Selected financial data are presented in Table 3. For the three months ended 31 March 2026, under statutory reporting, return on earning assets and return on equity, increased because of higher net income compared to 2025. Under management reporting basis, the return on equity decreased because of the lower allocable net income compared to 2025. Return on loans, return on investments for liquidity purposes, and cost of borrowings under both reporting bases, decreased because of the lower levels of short-term interest rates in 2026 compared to 2025.

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Table 3: Selected Financial Data

 (%, unless otherwise stated)

EI = equity investments, ODS = other debt securities.

Note: All ratios are based on average monthly balances. Amounts and ratios are for year-to-date figures except for outstanding balances and capital utilization ratio, which are as of period-end.

1. Loans

Loans—operations. ADB’s OCR lending falls into two categories: sovereign and nonsovereign. Sovereign loans consist of sovereign regular OCR loans and sovereign concessional OCR loans. Sovereign regular OCR loans are available to sovereign and sovereign-guaranteed borrowers in ADB DMCs that have attained higher economic development. Sovereign concessional OCR loans are available for the poorest and most vulnerable members of ADB. ADB also provides lending without sovereign guarantee to privately-held or state-owned or subsovereign entities. In its nonsovereign operations, ADB provides financial assistance based on market-based terms and conditions. ADB, as needed, will help mobilize additional debt from diverse institutions, such as private and public financial institutions and development partners.

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OCR offers lending products broadly in three modalities:

Table 4 shows OCR’s loans outstanding by modality.

Table 4: Loans Outstanding by Modality

as of 31 March 2026 and 31 December 2025

 ($ million)

( ) = negative, – = nil, NSO = nonsovereign, OCR = ordinary capital resources.

Note: Numbers may not sum precisely because of rounding.

Expected credit loss. ADB measures expected credit losses for loans, guarantees, and held-to-maturity debt securities. Expected credit losses are calculated using three components: exposure at default, probability of default, and loss given default. Credit losses are measured over the contractual term (lifetime) of the asset or commitment based on all available information: historical experience, current conditions, and macroeconomic forecasts. ADB is also exposed to credit risks on off-balance sheet exposures and records a liability for credit losses on undisbursed loan and held-to-maturity other debt securities commitments, and guarantees.

As of 31 March 2026, total allowance for credit losses and liability for credit losses on off-balance sheet exposures increased to $806 million ($733 million – 31 December 2025), mainly driven by a

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weaker macroeconomic outlook amid geopolitical tensions. Allowance for credit losses and liability for credit losses on off-balance sheet exposures are summarized in Table 5. Refer to Credit risk under Risk Management section for more information.

Table 5: Summary of Allowance for Credit Losses and Liability
for Credit Losses on Off-Balance Sheet Exposures

 as of 31 March 2026 and 31 December 2025

($ million)

Status of loans. ADB places loans in non-accrual status when the principal, interest or other charges are overdue by more than 180 days or in case of loans that are not yet overdue by more than 180 days, when there is expectation that loan service payment will not be collected when they become due at the point when such information is known. Once a loan to a borrower is placed in non-accrual status, all other overdue loans to the same borrower will be placed in non-accrual status. On the date a borrower’s loan is placed into non-accrual status, unpaid interest and other charges accrued are deducted from the revenue of the current period. As of 31 March 2026, there was one sovereign concessional loan borrower with 11 loans in non-accrual status with outstanding amount of $504 million (one sovereign concessional loan borrower with 11 loans with outstanding amount of $509 million – 31 December 2025) and there were eight nonsovereign borrowers in non-accrual status with outstanding amount of $92 million (seven nonsovereign borrowers with outstanding amount of $92 million – 31 December 2025).

Summary of loan activities. Table 6 shows the summary of loan commitments and Table 7 shows the disbursements and repayments for sovereign regular OCR, sovereign concessional OCR, and nonsovereign loans. For the three months ended 31 March 2026, the total OCR loan commitments was $1,409 million, lower by $38 million or 2.6% compared to 2025, mainly due to the decrease in sovereign regular loan commitments, partially offset by the increase in sovereign concessional and nonsovereign loan commitments. The total loan disbursements for the three months ended 31 March 2026 slightly increased to $4,761 million from $4,529 million in 2025.

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Table 6: OCR Loan Commitments
for the Three Months Ended 31 March

( ) = negative, OCR = ordinary capital resources.

Note: Amounts are based on exchange rates at loan signing date. Numbers may not sum precisely because of rounding.

Table 7: OCR Loan Disbursements and Repayments
for the Three Months Ended 31 March

($ million)

OCR = ordinary capital resources.

Note: Numbers may not sum precisely because of rounding.

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Table 8: OCR Loans Outstanding by Product
as of 31 March 2026 and 31 December 2025
($ million)

n/a = not applicable, ( ) = negative, OCR = ordinary capital resources, PSCL = Pool-based single currency loan.

Note: Numbers may not sum precisely because of rounding.

Sovereign regular OCR loans. The Flexible Loan Product (FLP) is the primary loan product for sovereign regular OCR. The cost-base⁶ rate used for FLP loans are the Secured Overnight Financing Rate (SOFR) compounded in arrears for US dollar-denominated loans, the Tokyo Overnight Average Rate (TONA) compounded in arrears for yen-denominated loans, and the 6-month Euro Interbank Offered Rate (EURIBOR) for euro-denominated loans. FLP loans have a lending rate consisting of the cost-base rate, lending spread, rebates or surcharges, and maturity premiums, if applicable (Table 9). If the lending rate calculated for any interest period is negative, the interest rate floor of zero will apply.

The FLP is designed to meet demand by borrowers for loan products that suit project needs and effectively manage their external debt. ADB provides sovereign regular OCR borrowers of FLP loans with options to manage their interest rate and exchange rate risks, while providing low intermediation risk to ADB. Borrowers may request a conversion of all or any portion of the principal amount of the loan through: (i) conversions to any standard currency or changes to the loan currency of all or part of the disbursed or undisbursed loan amounts; (ii) conversions to any nonstandard currency in which ADB can effectively intermediate (other than for conversions to a local currency) or changes to the loan currency of all or a part of the disbursed or undisbursed loan amounts; (iii) an interest rate conversion from floating to fixed or vice-versa of all or part of the disbursed or undisbursed loan amounts at the time of disbursement; and (iv) an establishment of an interest rate cap or an interest rate collar on a floating rate. For the three months ended 31 March 2026, one loan conversion executed in 2025 amounting to $22 million was made effective (nine loan conversions totaling $1,324 million – 2025).

Local currency loans (LCLs) are offered to sovereign borrowers in different local currencies of which ADB can effectively intermediate. ADB responds to the evolving financial needs of borrowers to reduce their currency mismatch in DMCs. LCLs may be made on a fixed or floating rate basis with an effective contractual spread. Floating rate LCLs typically reset every three or six months. The cost-base rate of an LCL is determined by its financing mode.

Table 9 shows the summary of charges on sovereign regular OCR FLP loans and LCLs as of 31 March 2026.

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Table 9: Summary of Charges on Sovereign Regular OCR Flexible

Loan Product and Local Currency Loans as of 31 March 2026

(basis point)

( ) = negative, CSF = Countercyclical Support Facility, EURIBOR = Euro Interbank Offered Rate, FLP = Flexible Loan Product, LCL = local currency loan, OCR = ordinary capital resources, SOFR = Secured Overnight Financing Rate, SPBL = special policy-based loan, TONA = Tokyo Overnight Average Rate, US = United States.

Sovereign concessional OCR loans. ADB offers sovereign concessional OCR loans to eligible DMCs. Concessional loans represent the concessional financing to DMCs with (i) per capita gross national income below the International Development Association (IDA) operational cut-off; (ii) least developed countries with per capita gross national income above the IDA operational cut-off; and (iii)

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per capita gross national income above the IDA operational cut-off with limited or lack of creditworthiness. Table 10 shows the summary of lending terms on currently available sovereign concessional OCR loans.

Table 10: Sovereign Concessional OCR Loan Terms
as of 31 March 2026

OCR = ordinary capital resources, SIDS = small island developing states.

The borrowers of sovereign concessional OCR loans may choose a currency of liability in special drawing rights (SDR) or a currency that is available under ADB’s FLP and in the SDR basket, subject to ADB confirmation of the availability of such currency. As of 31 March 2026, over 98% (97% – 2025) of the sovereign concessional OCR loans were in SDR (48%) and US dollars (49%).

Nonsovereign loans. The FLP is the primary loan product for nonsovereign operations. Similar with the sovereign regular OCR loans, the cost-base rate used for FLP loans are SOFR compounded in arrears as primary option together with the optional Term SOFR for US dollar-denominated loans, and the TONA compounded in arrears is the cost-base rate for yen-denominated loans. As of 31 March 2026, all nonsovereign loans have successfully transitioned to the FLP, with the exception of a few loans where ADB applies its cost of funds until contract amendments are finalized.

ADB applies market-based pricing to determine the lending spread, front-end fees, commitment charges, and other fees for each loan. The lending spread is intended to cover ADB’s risk exposure to specific borrowers and projects and the front-end fee is intended to cover the administrative costs incurred in loan origination. Front-end fees are typically 1% to 1.25% depending on the transaction. ADB applies a commitment fee (typically 0.50% to 1.0% per year) on the undisbursed loan balance.

ADB provides certain nonsovereign borrowers with conversion options of all or any portion of the principal amount of the loan through: (i) a currency conversion from a local currency to US dollar or vice versa; and (ii) an interest rate conversion from floating to fixed or vice versa. There were no loan conversions during the three months ended 31 March 2026 and 2025.

LCLs are also offered to nonsovereign borrowers in different local currencies which ADB can effectively intermediate. ADB responds to the evolving financial needs of borrowers to reduce their currency mismatch. LCLs are priced based on ADB’s funding costs and a credit spread.

2. Guarantees

Private Sector Programs. ADB’s private sector programs include the Trade and Supply Chain Finance (TSCFP) and Microfinance programs (MFP). The TSCFP has two main streams of

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activity: (i) it provides guarantees and loans through partner banks to close market gaps for trade finance, including among small and medium-sized businesses, to generate the trade-led growth and jobs that underpin development; and (ii) it delivers knowledge products, services, and solutions to make global trade and supply chains green, resilient, inclusive, transparent and socially responsible. The MFP provides risk participation on revolving basis for loans made by commercial financial institutions to microfinance institutions in ADB's DMCs. Table 11 shows the commitments under the private sector programs.

Table 11: OCR Commitments under Private Sector
Programs for the Three Months Ended 31 March
($ million)

Exposure Exchange Agreement. The exposure exchange agreement (EEA) provides for the simultaneous exchange of credit risk coverage for potential non-accrual events on the exchanged sovereign exposures. In case of non-accrual events, the party providing protection would pay the other counterparty interest for any period the covered exposure is in nonaccrual, and principal when the covered exposure is fully or partially written-off. The EEA transaction is treated as an exchange of two separate financial guarantees (guarantee provided and guarantee received). As of 31 March 2026, ADB’s total amount of guarantee provided and received under its EEA with peer multilateral development banks amounted to $9.0 billion ($9.0 billion – 31 December 2025).

3. Investments for Liquidity Purpose

The OCR liquidity investment portfolio after swaps including securities purchased under resale arrangements and securities transferred under repurchase agreements amounted to $63,297 million as of 31 March 2026 ($60,807 million – 31 December 2025). ADB’s liquidity investment portfolio primarily consists of high-quality liquid fixed income investments. For the three months ended 31 March 2026, the overall rate of return under the management reporting basis decreased to 3.8% from 4.3% during the same period in 2025.

4. Borrowings

OCR borrowings after swaps as of 31 March 2026 amounted to $173,934 million ($169,709 million – 31 December 2025). The average cost of borrowings after swaps for the three months ended 31 March 2026 was 3.9% under the management reporting basis (4.6% – 2025). For the three months ended 31 March 2026, ADB issued $20,855 million bonds ($18,545 million – 2025) and $3,024 million in short-term funds under its Euro-Commercial Paper Programme ($812 million – 2025).

C. Equity and Headroom

As of 31 March 2026, ADB’s total authorized capital of 10,639,233 shares valued at $144,460 million was fully subscribed, which consisted of $7,239 million paid-in and $137,221 million callable capital. The details of ADB’s equity as of 31 March 2026 and 31 December 2025 are shown in Table 12.

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Table 12: Details of Equity

as of 31 March 2026 and 31 December 2025

 ($ million)

Callable capital. Callable capital can be called only if required to meet ADB’s obligations incurred on borrowings or guarantees under OCR. No call has ever been made on ADB’s callable capital.

Paid-in capital. ADB’s paid-in capital may be freely used in its ordinary operations, except that DMCs have the right under the Charter to restrict the use of a portion of their paid-in capital to make payments for goods and services produced and intended for use in their respective territories.

Allocation of OCR net income.⁷ In accordance with Article 40 of the Charter, the Board of Governors annually approves the allocation of the previous year’s net income to reserves and/or surplus. In addition, to the extent feasible, it approves the transfer of part of net income to Special Funds to support development activities in the DMCs. In May 2026 and 2025, the Board of Governors approved the allocation of OCR’s net income for 2025 and 2024, respectively, as shown in Table 13.

Table 13: Allocation of OCR Net Income
for the Years Ended 31 December

($ million)

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Equity Investment Headroom. As of 31 March 2026, Equity investment headroom was $3,239 million, representing 39% utilization of the ceiling ($3,228 million representing 39% utilization – 31 December 2025).

D. Capital Adequacy

ADB’s capital adequacy framework (CAF) aims to ensure that large risk events will not lead to a downgrade of ADB’s AAA rating or to an erosion of investor confidence. The framework is designed to protect the risk-bearing capacity of ADB without relying on callable capital, and to maintain ADB’s ability to lend even during crises.

Under the CAF, ADB holds capital to protect against eight material risk types: credit risk in the operations portfolio, equity investment risk, interest rate risk, treasury credit risk, operational risk, pension risk, currency risk, and countercyclical lending buffer. ADB uses a capital utilization ratio (CUR) as the key metric in measuring capital adequacy. The CUR is the ratio of the total economic capital used (numerator) to usable equity (denominator).

As of 31 March 2026, ADB was adequately capitalized and reported CUR of 71.3% (72.6% – 31 December 2025).

The leverage ratio, approved by ADB’s Board of Directors took effect on 1 March 2026 with a minimum level of 12%. The leverage ratio calculation approach is in line with guidance from Basel Committee on Banking Supervision, and its adoption aims to reduce reliance on complex risk-based models and to increase transparency and comparability across financial institutions. The leverage ratio as of 31 March 2026 was 21% (22% – 31 December 2025).

III.          SPECIAL FUNDS

ADB is authorized by its Charter to establish and administer Special Funds. These are the ADF, Technical Assistance Special Fund (TASF), Japan Special Fund (JSF), Asian Development Bank Institute (ADBI), Regional Cooperation and Integration Fund (RCIF), Climate Change Fund (CCF), Asia Pacific Disaster Response Fund (APDRF), and Financial Sector Development Partnership Special Fund (FSDPSF). Financial statements for each Special Fund are prepared in accordance with US GAAP.

The ADF is ADB’s largest Special Fund and main source of grant resources for supporting ADB’s poorest and most vulnerable DMCs. Established in 1974, the ADF initially provided loans on concessional terms to ADB’s lower income DMCs. ADF grants were introduced in 2005 to reduce debt burdens in ADB’s poorest DMCs. Beginning in 2017 and following the merger of ADF lending with OCR, ADF is now focused exclusively on grants, while concessional lending is provided through the concessional OCR window. ADF resources mainly come from contributions of ADB members, mobilized through periodic replenishments and net income transfers from OCR. ADF resources have been replenished 13 times, the latest being ADF 14 for the period 2025-2028, and received contributions from 39 regional and nonregional members since establishment.

ADF 14 (Thirteenth Replenishment). In September 2024, the Board of Governors adopted the resolution for the 13th replenishment of the ADF (ADF 14) and the eighth regularized replenishment of the TASF to provide grant and TA financing to eligible recipients from 2025 to 2028. ADF 14 became effective on 23 April 2025 when unqualified instruments of contribution deposited reached an amount equivalent to $1,694 million, representing more than 50% of all pledged contributions. As of 31 March 2026, the total replenishment size was $5,004 million, consisting of $4,444 million for ADF 14 and $560 million for TASF 8. Funding sources include (i) $2,573 million from new donor

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contributions; (ii) $1,574 million from OCR net income transfers subject to annual approvals by ADB’s Board of Governors as part of the annual net income allocation; (iii) $351 million income from liquidity investments; and (iv) $506 million from other sources generated from savings and cancellations from previous ADF cycles, as well as partial releases of ADF 13 funds allocated to the expanded disaster and pandemic response facility and debt distress reserve. Of the new donor contributions, ADB received instruments of contribution from 34 donors totaling $2,399 million.⁸

Contributed resources. The balance of the commitment authority available for commitment as of 31 March 2026 was $541 million equivalent ($476 million – 31 December 2025).

In May 2026, the Board of Governors approved the transfer of $394 million to the ADF as part of OCR’s 2025 net income allocation ($394 million – 2025) (footnote 7).

Operations. During the three months ended 31 March 2026, two grants totaling $16 million were committed (nil – 2025) while 15 grants (19 grants – 2025) became effective resulting in a total grants expense of $173 million ($262 million – 2025), net of $0.3 million ($0.2 million – 2025) undisbursed grants that were reversed as reduction in grant expenses. As of 31 March 2026, the balance of undisbursed grants, net of grant advances totaled $3,321 million ($3,225 million – 31 December 2025).

Investments for liquidity purpose. The ADF investment portfolio totaled $4,958 million as of 31 March 2026 compared to $4,987 million at the end of 2025.⁹ As of 31 March 2026, about 10% of the portfolio was invested in time deposits (8% – 31 December 2025) and 90% in fixed-income securities (92% – 31 December 2025). For the three months ended 31 March 2026, the rate of return on ADF investments, excluding unrealized gains and losses, was 3.3% (3.0% – 2025).

The TASF is an important source of financing for ADB’s TA activities. The TASF supports project preparation, policy advice, capacity development, and research and development in ADB developing member countries. The funds resources consist of regularized replenishments and direct voluntary contributions by members, allocations from the net income of OCR, and revenue from investments and other sources. The TASF provides a stable and predictable funding source and acts as a catalyst for mobilizing funding from other TA sources.

TASF Eighth Regularized Replenishment. In September 2024, as part of the ADF 14 replenishment, the donors agreed to allocate $560 million of the total replenishment size as the eighth regularized replenishment of the TASF. The replenishment, which became effective on 23 April 2025, covers TA financing for 2025 to 2028. TA will play an increasingly important role during the ADF 14 period as ADB expands its lending volumes under Capital Utilization Plan.

Contributed resources. As of 31 March 2026, $133 million of donor contributions have been received out of the $560 million set-aside for TASF under ADF 14.

As of 31 March 2026, cumulative TASF resources totaled $4,928 million, of which $4,410 million was committed, leaving an uncommitted balance of $518 million ($518 million – 31 December 2025).

In May 2026, the Board of Governors approved the transfer of $130 million to the TASF as part of OCR’s 2025 net income allocation ($130 million – 2025) (footnote 7).

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Operations. For the three months ended 31 March 2026, there were 12 TA projects and 10 supplementary TA totaling $16 million (10 TA projects and eight supplementary TA totaling $13 million – 2025) made effective, and $7 million ($5 million – 2025) of undisbursed amounts were reversed as reduction in TA expenses, resulting to a net TA expense of $9 million ($7 million – 2025). As of 31 March 2026, the undisbursed TA, net of TA advances, amounted to $768 million ($809 million – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio amounted to $862 million ($898 million – 31 December 2025). About 36% of the portfolio was invested in time deposits and 64% in fixed-income securities (38% in time deposits and 62% in fixed-income securities – 31 December 2025). For the three months ended 31 March 2026, the rate of return on TASF investments was 3.2% (4.3% – 2025).

The JSF was established in March 1988 when the Government of Japan and ADB entered into an agreement whereby the Government of Japan made an initial contribution of JPY2.5 billion with ADB as the administrator. The purpose of JSF is to help ADB’s DMCs restructure their economies in light of changing global environment and to broaden their investment opportunities.

In 2009, due to the global conditions and to align the assistance provided by the Government of Japan through other multilateral development banks, JSF’s role and function was transferred to the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR) to cover support for ADB’s TA operations. In January 2022, JSF operations were resumed to maximize its benefits in supporting the needs of ADB’s DMC through TA operations supplementing JFPR support.

JSF IF-CAP Window. In October 2024, the Board of Directors approved the establishment of the JSF Innovative Finance Facility for Climate in Asia and the Pacific Financing Partnership Facility (IF-CAP) Window (JSF IF-CAP Window) as a separate, special-purpose component of the JSF to channel the contribution of the Government of Japan to IF-CAP.¹⁰ The contribution will be in the form of noninterest bearing, nonnegotiable government notes cashable by ADB at any time to meet the demands for non-payments under the IF-CAP Guarantee Mechanism. Any excess encashments, reflows, and other funds that may be contributed from the Government of Japan for the same purposes may be included as part of the arrangements of the JSF-IF CAP Window. The Government of Japan elected to have guarantee premiums payable to them by ADB deposited into the JSF IF-CAP Window for future obligations under the IF-CAP Guarantee Mechanism. As of 31 March 2026, total guarantee premiums received, including interest income earned on these funds, amounted to $6 thousand ($6 thousand – 31 December 2025) and were recorded as Other Liabilities.

The JSF IF-CAP Window is administered by ADB under the governance structure of the JSF.

Contributed resources. As of 31 March 2026, the cumulative fund resources of JSF totaled $1,013 million, of which $906 million had been used, leaving an uncommitted balance of $107 million ($107 million – 31 December 2025).

Operations. For the three months ended 31 March 2026, no TA projects and one supplementary TA totaling $2 million became effective (two TA projects and one supplementary TA totaling $5 million – 2025). The balance of undisbursed TA, net of TA advances as of 31 March 2026, amounted to $21 million ($20 million – 31 December 2025).

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Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $127 million ($126 million – 31 December 2025).

ADBI was established in 1996 as a subsidiary body of ADB, whose objectives are to identify effective development strategies and capacity improvements for sound development management in the DMCs. Its operating costs are met by ADBI, and it is administered in accordance with the Statute of the ADBI.

For the three months ended 31 March 2026, committed contributions to ADBI totaled $0.5 million (nil – 2025), while expenses amounted to $3 million ($3 million – 2025). As of 31 March 2026, the balance of uncommitted balance without donor restriction (excluding property, furniture, and equipment and lease liability) available for future projects and programs was about $16 million ($18 million – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $11 million ($11 million – 31 December 2025).

Established in February 2007 as a special fund under the Regional Cooperation and Integration Financing Partnership Facility, the RCIF aims to enhance regional cooperation and integration in Asia and the Pacific by financing TA projects that support greater and higher quality connectivity between economies, expand global and regional trade and investment opportunities, and increase and diversify regional public goods.

Contributed resources. As of 31 March 2026, cumulative RCIF resources totaled $107.4 million, of which $107.0 million had been used, leaving an uncommitted balance of $0.4 million ($0.1 million – 31 December 2025).

Operations. For the three months ended 31 March 2026 and 2025, no TA project became effective, and undisbursed amounts of $0.3 million ($0.2 million – 2025) were reversed as reduction in TA expense, resulting to a net TA expense of -$0.3 million (-$0.2 million – 2025). As of 31 March 2026, the balance of undisbursed TA, net of TA advances amounted to $10 million ($10 million – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $9 million ($10 million – 31 December 2025).

The CCF was established in April 2008 to facilitate greater investments in DMCs to effectively address the causes and consequences of climate change. CCF supports investments on (i) adaptation; (ii) clean energy; and (iii) reducing emissions from deforestation and forest degradation (REDD+) and land use management by providing resources through TA, grant components of investment projects, and direct charges.

Contributed resources. As of 31 March 2026, cumulative CCF resources totaled $106 million, of which $93 million had been used, leaving an uncommitted balance of $13 million ($12 million – 31 December 2025).

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Operations. For the three months ended 31 March 2026 and 2025 , no TA project became effective. Undisbursed amounts totaling $0.3 million ($37 thousand – 2025) were reversed as a reduction in TA expense, resulting to a net TA expense of -$0.3 million (-$37 thousand – 2025). In the same period, no grant was committed (nil – 2025) and made effective (one grant totaling $0.9 million – 2025). As of 31 March 2026, the balance of undisbursed grants and TA, net of advances totaled $9 million ($9 million – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $21 million ($21 million – 31 December 2025).

The APDRF was established in April 2009 to provide timely incremental grant resources to DMCs affected by disasters triggered by natural hazards. In September 2021, a second window under the APDRF was established to finance experts to provide speedy post-disaster technical support for the preparation of post-disaster needs assessments, recovery plans, and post-disaster projects, including emergency assistance loan. The second window will not finance any technical support needs arising during post-disaster project implementation and will not be available should the fund’s balance fall below $6 million.

Contributed resources. As of 31 March 2026, cumulative fund resources totaled $175 million, of which $156 million had been used, leaving an uncommitted balance of $20 million ($22 million – 31 December 2025).

In May 2026, the Board of Governors approved the transfer of $10 million to the APDRF as part of OCR’s 2025 net income allocation (nil – 2025) (footnote 7).

Operations. For the three months ended 31 March 2026, one grant amounting to $2 million (two grants totaling $2.5 million – 2025) was committed, one grant totaling $2 million (three grants totaling $4.5 million – 2025) became effective, and $2 thousand undisbursed amounts (nil – 2025) were reversed as a reduction in grant expenses, resulting to a total grant expense of $2 million ($5 million – 2025). As of 31 March 2026, the balance of undisbursed grants, net of grant advances, was nil ($2 thousand – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $19 million ($21 million – 31 December 2025).

The FSDPSF was established in January 2013 to strengthen regional, subregional, and national financial systems in Asia and the Pacific. With the approval of the Finance Sector Directional Guide in November 2022, the FSDPSF will support the six areas of operational focus: (i) enhancing support to emerging areas such as SDG-aligned financing, including green and blue financing; (ii) promoting long-term finance and quality infrastructure; (iii) leveraging digital technology to deliver financial services for financial inclusion; (iv) expanding financing to micro, small and medium enterprises and women; (v) establishing frameworks for disaster and epidemic risk financing; and (vi) strengthening the finance sector foundation.

Contributed resources. As of 31 March 2026, cumulative fund resources totaled $36 million, of which $33 million had been used, leaving an uncommitted balance of $3 million ($2 million – 31 December 2025).

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In May 2025, the Government of Luxembourg committed a contribution of €2.5 million (equivalent to $2.8 million at the time of commitment), which was transferred to the FSDPSF in July 2025.

In January 2026, the Government of Luxembourg committed a contribution of €650,000 (equivalent to $762,000 at the time of commitment), which was transferred to the FSDPSF in the same month.

Operations. For the three months ended 31 March 2026, no TA projects and three supplementary TA totaling $0.8 million (nil – 2025) became effective, and $95 thousand undisbursed amounts were reversed as a reduction in TA expense ($0.6 million – 2025), resulting to a total TA expense of $0.7 million (-$0.6 million – 2025). As of 31 March 2026, the balance of undisbursed TA, net of TA advances, totaled $10 million ($9 million – 31 December 2025).

Investments for liquidity purpose. As of 31 March 2026, the total investment portfolio, which was in time deposits, amounted to $12 million ($11 million – 31 December 2025).

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Financial Statements

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ASIAN DEVELOPMENT BANK—ORDINARY CAPITAL RESOURCES

CONDENSED BALANCE SHEET

31 March 2026 and 31 December 2025 

Expressed in Millions of US Dollars 

Note: Certain reclassifications have been made to conform to current year’s presentation. 

The accompanying Notes are an integral part of these condensed financial statements (OCR-6).

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OCR-1