Abu Dhabi Islamic Bank (Adib) has reported a record net profit before tax of Dh4 billion for the first half of 2025, a 16 per cent increase compared to the same period last year.
The strong results reflect broad-based income growth, a surge in new customer acquisitions, and effective execution of a diversified business strategy. Net profit after tax for the six-month period stood at Dh3.5 billion, up 15 per cent year-on-year.
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The bank’s second-quarter performance also mirrored this momentum, with net profit before tax rising 14 per cent to Dh2 billion and net profit after tax climbing to Dh1.8 billion, a 13 per cent annual increase. Adib’s return on equity (RoE) reached a robust 29.8 per cent for the first half, approaching a record 30 per cent, reaffirming the bank’s leadership in generating shareholder value within the regional banking sector.
Total revenues grew by 11 per cent year-on-year to Dh5.9 billion, up from Dh5.3 billion in the first half of 2024. The growth was supported by a balanced contribution from both funded and non-funded income streams. Funded income rose nine per cent to Dh3.6 billion, buoyed by increased business volumes and strategic asset-liability management, which helped mitigate the effects of interest rate cuts introduced in late 2024. Net profit margin stood at 4.27 per cent, highlighting the bank’s strong operating efficiency.
Non-funded income saw an even more impressive gain, increasing 15 per cent to Dh2.3 billion. This was primarily driven by a 28 per cent jump in fee-generating revenues, which reflected rising customer activity and successful cross-selling across retail and corporate segments. Non-funded income now contributes 39 per cent to Adib’s total operating income, highlighting the bank’s strategic focus on income diversification.
Adib also demonstrated operational efficiency with its cost-to-income ratio improving to 28.2 per cent, down 40 basis points from a year earlier. Operating expenses increased by nine per cent to Dh1.7 billion, mainly due to continued investments in digital infrastructure, technology upgrades, and talent acquisition to support long-term growth.
The bank’s credit quality improved notably, with impairments down 24 per cent to Dh305 million, resulting in a cost of risk of 44 basis points. The non-performing asset ratio dropped to 3.5 per cent, its lowest level since the fourth quarter of 2016, underscoring successful legacy portfolio remediation and disciplined underwriting. Provision coverage, including collaterals, improved significantly to 160.8 per cent, while excluding collaterals, the ratio rose to 85.3 per cent from 76.9 per cent a year ago.
Adib’s total assets rose 22 per cent year-on-year to Dh260 billion, driven by strong growth in both retail and corporate financing, as well as an expansion in the bank’s investment portfolio. Customer financing surged 23 per cent year-on-year, amounting to Dh31 billion in new credit, while Dh20 billion was added year-to-date, reflecting increased market share across core segments and strategic deals in wholesale banking.
Customer deposits grew by 24 per cent to Dh213 billion, compared to Dh172 billion at the end of June 2024. The bank maintained a healthy funding mix, with current and savings accounts (CASA) rising 11 per cent and now accounting for 66 per cent of total deposits. Capital and liquidity positions remained strong, with a Common Equity Tier 1 ratio of 12.69 per cent, a total Capital Adequacy Ratio of 16.56 per cent, and an eligible liquid asset ratio of 17.7 per cent. The advances-to-stable funding ratio was 80.3 per cent.
Adib welcomed 145,000 new customers in the first half of the year, reflecting strong demand for its expanding digital offerings and Sharia-compliant financial solutions. Total shareholders’ equity grew 13 per cent to Dh29 billion, reinforcing the bank’s financial resilience.
Jawaan Awaidah Al Khaili, chairman of Adib, said the bank’s exceptional first-half performance is a result of record business volumes, continued momentum in customer acquisition, and successful execution of a long-term growth strategy. “We are focused on building a future-ready bank that integrates technology and delivers long-term value to shareholders,” he said.
Group CEO Mohamed Abdelbary added, “Our disciplined credit approach and high-quality asset origination continue to strengthen our balance sheet. The record earnings show that we are well-positioned to capitalise on the UAE’s expanding economy and evolving financial landscape.” He reiterated Adib’s commitment to its Vision 2035, aiming to create a resilient, tech-forward Islamic bank that meets future challenges and opportunities head-on.
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.
