Abu Dhabi Commercial Bank (ADCB) Q2 2025 earnings summary

Executive summary

• Q2 2025 profit before tax rose 17% YoY to AED 3.035 billion, with net profit at AED 2.568 billion and ROAE of 14.9%; H1 2025 net profit reached AED 5.014 billion, with ROAE at 14.1%.

• Achieved four years of consecutive quarterly profit growth, driven by diversified revenue streams, balance sheet expansion, and efficiency gains.

• Total assets grew to AED 719 billion as of June 2025.

• The interim financial information was reviewed by Deloitte, with no material misstatements identified.

Financial highlights

• Operating income for H1 2025 rose 15% YoY to AED 10.74 billion; net interest income for Q2 2025 was AED 3.654 billion (+8% QoQ, +12% YoY), with NIM at 2.49%.

• Non-interest income increased 36% YoY in H1 2025, now representing 34% of total operating income.

• Cost-to-income ratio improved to a record low of 26.4% in Q2 2025, down 620 bps YoY.

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

• Operating profit before impairment for H1 2025 was AED 7.77 billion.

Outlook and guidance

• Five-year plan targets doubling net profit to AED 20 billion by 2029, implying 20% CAGR and progressive dividend payout of AED 25 billion.

• Maintains cost of risk guidance below 60 basis points.

• The Group is assessing the impact of the new Domestic Minimum Top-up Tax (DMTT), which may affect future tax rates.

• Focused on sustainable growth, digital transformation, and prudent risk management.