Abu Dhabi Commercial Bank (ADCB) Q2 2025 earnings summary

Executive summary

• Q2 2025 profit before tax rose 17% year on year to AED 3.035 billion, with net profit at AED 2.568 billion and ROAE of 14.9%.

• H1 2025 profit before tax increased 18% year on year to AED 5.942 billion, net profit at AED 5.014 billion, and ROAE of 14.1%.

• Net profit for H1 2025 reached AED 5,013.7 million, with basic EPS at AED 0.64, up from AED 0.56.

• Total assets grew to AED 718.5 billion as of June 30, 2025, compared to AED 652.8 billion at year-end 2024.

• Performance driven by balance sheet expansion, diversified income streams, and efficiency gains.

Financial highlights

• Operating income increased 15% year on year to AED 10.7 billion in H1; operating profit before impairment up 33% year on year to AED 4.218 billion in Q2.

• Net interest income for H1 2025 rose to AED 5,817.7 million, with Q2 net interest income at AED 3.654 billion and NIM at 2.49%.

• Non-interest income surged 44% year on year and 28% sequentially in Q2 to AED 2.1 billion, now 34% of total operating income.

• Cost-to-income ratio improved to a record low of 26.4% in Q2, down 620 basis points year on year.

• Net loan growth reached 14% year on year to AED 378 billion; customer deposits rose 19% year on year to AED 463 billion.

Outlook and guidance

• Five-year plan targets doubling net profit to AED 20 billion by 2029, implying 20% CAGR.

• Cost of risk guidance maintained at below 60 basis points.

• Management targets CET1 ratio above 12% and progressive dividend increases over five years.

• The Group is assessing the impact of the new Domestic Minimum Top-up Tax (DMTT), with evaluation expected by Q3 2025.