Abu Dhabi Commercial Bank (ADCB) on Tuesday reported a pre-tax profit of Dh5.94 billion for the first six months of 2025, up 18 per cent year-on-year, as the bank’s strategic initiatives, digital transformation, and diversified income streams propelled strong growth across key metrics.
Net profit after tax stood at Dh5.01 billion despite a higher tax provision under the UAE’s new 15 per cent corporate tax regime.
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In the second quarter alone, ADCB posted a pre-tax profit of Dh3.03 billion, marking a 17 per cent year-on-year increase, while net profit after tax reached Dh2.57 billion. Operating income for Q2 rose by 22 per cent to Dh5.73 billion, supported by a surge in both interest and non-interest revenues. The bank’s cost-to-income ratio fell to a record low of 26.4 per cent in Q2, reflecting a 620-basis-point improvement from a year earlier.
Ala’a Eraiqat, group chief executive officer of ADCB, attributed the strong results to consistent execution of the bank’s five-year strategy and favourable domestic macroeconomic conditions. “ADCB is delivering strong and consistent progress on its strategic agenda. We have now achieved four years of consecutive quarterly profit growth. Our performance in the first half of 2025 reflects an exceptional operational and financial outcome across all our core businesses,” he said in a statement.
“Our double-digit revenue growth has been driven by robust credit expansion, continued customer acquisition, and a significant rise in non-interest income, which now accounts for 34 per cent of total operating income. This growth has been underpinned by disciplined cost control and operational efficiencies, especially from our ongoing digital and AI transformation,” Eraiqat added.
The bank’s net interest income rose seven per cent year-on-year in H1 2025 to Dh7.05 billion, while non-interest income soared 36 per cent to Dh3.69 billion. Operating profit before impairments increased 22 per cent to Dh7.77 billion in the first half, supported by strong growth in trading income and fee-based businesses.
Deepak Khullar, group chief financial officer, highlighted ADCB’s resilient balance sheet growth and strong asset quality. “Net loans increased by Dh28 billion to reach Dh378 billion, up 8 per cent year-to-date and 14 per cent year-on-year. Deposits grew by Dh42 billion to Dh463 billion, with CASA deposits rising by Dh21 billion to Dh207 billion and now representing 45 per cent of total deposits,” Khullar said.
“Credit quality has improved significantly, with our non-performing loan (NPL) ratio reducing to 2.02 per cent from 3.04 per cent at the end of last year. Provision coverage has strengthened to 173.1 per cent, and including collateral, total coverage stands at 279 per cent,” he added.
Total assets reached Dh719 billion, up 17 per cent year-on-year and 10 per cent since the start of 2025. Capital adequacy and CET1 ratios remained strong at 15.53 per cent and 12.21 per cent, respectively. Liquidity coverage ratio stood at 135.2 per cent, and the loan-to-deposit ratio was at a healthy 81.7 per cent.
The bank’s Retail Banking division saw significant momentum, adding over 68,000 new customers in Q2, the majority through digital channels. CASA deposits in retail rose 25 per cent year-on-year, and assets under management increased 35 per cent, driven by new investment products and personalised AI-powered offerings.
The Corporate and Investment Banking Group (CIBG) also posted a strong quarter, onboarding over 125 new large corporate and GRE clients and establishing over 2,200 new SME and mid-sized corporate relationships. The group played a key role in regional capital markets, acting as joint lead manager on major sukuk issuances for DP World, ADNOC, and Saudi Arabia’s Public Investment Fund.
The bank also continues to innovate in financial services. In Q2, ADCB launched Meedaf, an ADGM-licensed entity providing operational services to financial institutions, and partnered with Brink’s to elevate cash and ATM managed services. ADCB was among the first banks certified to participate in the UAE Central Bank’s Al Tareq Open Finance platform, completing the country’s first transaction under the initiative.
In Egypt, ADCB’s operations remained strong, with net profit rising 39 per cent year-on-year, supported by healthy loan growth. Al Hilal Bank, the group’s Islamic banking arm, continued advancing its digital-first strategy, recording increased product uptake and deposit inflows.
Eraiqat reaffirmed the bank’s commitment to long-term value creation. “ADCB’s 12-month shareholder return of 75 per cent reflects growing investor confidence, and our market capitalisation has now crossed the Dh100 billion mark. We remain focused on sustainable growth, prudent capital deployment, and supporting the UAE.
issacjohn@khaleejtimes.comis Managing Editor at media and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
