Abu Dhabi Islamic Bank (ADIB) Q2 2025 earnings summary

Executive summary

• Delivered record net profit for H1 2025, with net income before tax at AED 4 billion (up 16% YoY) and net income after tax at AED 3.49 billion (up 15% YoY), with ROE at 29.8%.

• Revenue increased 11% to AED 5.9 billion, driven by both funded and non-funded income streams.

• Added 145,000 new customers in H1, bringing total clients to 2 million, with digital channels driving acquisition.

• Maintained cost-to-income ratio at 28.2% despite investments in technology and talent.

• Total assets surpassed AED 260 billion, supported by 22% year-over-year growth.

Financial highlights

• Net profit for H1 2025 reached AED 4 billion before tax (up 16% YoY), and AED 3.49 billion after tax (up 15% YoY); Q2 net profit at AED 1.8 billion (up 13%).

• Revenues rose 11% to AED 5.9 billion; expenses increased 9%, improving operating jaws.

• Non-funded income grew 15% YoY, now comprising 39% of total income.

• Customer deposits increased 24% YoY to AED 213 billion, with CASA at 66%.

• Gross financing assets grew 22% YoY to AED 167 billion, led by retail and wholesale segments.

Outlook and guidance

• Full-year customer financing growth expected at 18%-20%.

• Net profit margin guidance at 4%-4.25%, assuming two rate cuts in H2 2025.

• Cost of risk guided at 40-60 basis points; cost-to-income ratio to remain below 30%.

• ROE expected to stay above 25% for the foreseeable future.