Today's Edition
ABU DHABI (ALETIHAD)
Abu Dhabi Commercial Bank (ADCB) has reported a net profit of Dh6.737 billion, representing 34% year-on-year growth, for the first half of this year.
Profit before tax increased 28% to a record Dh7.607 billion, while operating income rose 12% to Dh11.981 billion, the bank said in a statement on Thursday.
Non-interest income grew 22% to Dh4.510 billion and accounted for 38% of operating income, supported by higher fee and trading income. The cost-to-income ratio improved by 90 basis points to 26.8%.
Return on average equity after tax increased by 210 basis points to 16.2%.
ADCB noted that the year-on-year comparison of net profit after tax was not on a like-for-like basis. Its tax provision for the first half of 2025 was calculated at 15% following the introduction of the UAE Domestic Minimum Top-up Tax.
The group subsequently determined that it qualified for an exclusion that resulted in the application of the 9% statutory tax rate in the first half of 2026.
Total assets reached Dh833 billion at the end of June, increasing 16% year on year and 8% since the beginning of 2026.
Net loans to customers rose by Dh42 billion during the first half to Dh445 billion, representing growth of 18% year on year and 10% since the end of 2025. Customer deposits increased by Dh27 billion during the period to Dh527 billion, up 14% annually and 5% year to date.
The non-performing loan ratio improved to 1.71% from 1.83% at the end of 2025, while the first-half cost of risk declined to 38 basis points from 69 basis points a year earlier.
The bank’s Common Equity Tier 1 ratio stood at 13.66%, compared with 13.79% at the end of 2025, while its liquidity coverage ratio was 109.5%, against 131.3% at the end of last year.
For the second quarter, ADCB reported a record profit before tax of Dh3.826 billion, up 26% year on year and marking its 20th consecutive quarter of profit growth. Non-interest income increased 12%, supported by higher fee and trading income, while the cost of risk declined to 36 basis points from 88 basis points in the corresponding quarter last year.
Ala’a Eraiqat, Group Chief Executive Officer of ADCB, said the bank’s second-quarter performance reflected the strength of its franchise and the resilience of the UAE economy.
He said ADCB continued to integrate artificial intelligence into customer services, employee productivity and business operations, including through the launch of a new AI-enabled mobile banking application.
Looking ahead, Eraiqat said the bank saw a healthy pipeline of opportunities across its core businesses, supported by investment in energy, transport, logistics, infrastructure, tourism and artificial intelligence.
Deepak Khullar, Group Chief Financial Officer of ADCB, said first-half profitability was supported by strong lending momentum, diversified income streams and a lower cost of risk.
“Non-interest income continues to serve as a key driver of growth, increasing 22% year on year in the first half, supported by higher fee and trading income,” Khullar said.
