Abu Dhabi Commercial Bank Reports Strong Growth in Profits and Assets for H1 2025

Abu Dhabi Commercial Bank (ADCB) has announced robust financial results for the first half of 2025, driven by the UAE’s flourishing economic environment and the successful implementation of its ambitious five-year strategy.

The bank recorded a 17% year-on-year increase in pre-tax profit for Q2 2025, reaching AED 3.035 billion, while H1 2025 pre-tax profit climbed 18% to AED 5.942 billion. Net profit after tax stood at AED 2.568 billion for Q2 and AED 5.014 billion for the first half, delivering a return on average equity of 14.9% and 14.1%, respectively.

On the balance sheet side, total assets rose 17% year-on-year and 10% compared to year-end 2024, reaching AED 719 billion. Net loans and advances grew by 14% annually (AED 46 billion) and 8% (AED 28 billion) in H1 2025 to reach AED 378 billion.

Customer deposits saw a 19% year-on-year increase (AED 73 billion) and a 10% rise (AED 42 billion) during the first half of 2025, totaling AED 463 billion. Current and savings account (CASA) deposits surged by 21% (AED 35 billion) year-on-year and 11% (AED 21 billion) during H1 2025, now comprising 45% of total customer deposits at AED 207 billion.

Strong Financial Ratios

• Capital adequacy ratio stood at 15.53%, with a CET1 ratio of 12.21%.

• Liquidity coverage ratio was 135.2%, and the loan-to-deposit ratio was 81.7%.

• Non-performing loan (NPL) ratio improved to 2.02%, down from 3.04% at the end of 2024.

• Cash coverage ratio rose to 173.1%, and 279% when including collateral.

Operating profit increased by 22% year-on-year in H1 2025, driven by a diversified income mix, expanded lending across vital economic sectors, and strong CASA deposit inflows. Cost discipline and rising productivity—supported by digital transformation and AI adoption—helped reduce the cost-to-income ratio to a record low of 26.4% in Q2 2025, down 620 basis points from the same period in 2024.

Income Growth and Digital Acceleration

Operating income for H1 2025 rose by 15% year-on-year, while net interest income grew by 7%. Non-interest income saw a significant 36% increase, contributing 34% of total operating income, up from 29% last year.

The bank’s loan portfolio has grown at a compound annual growth rate (CAGR) of 10% over the past five years, with a continued focus on high-quality lending and disciplined risk management in line with Central Bank of the UAE guidelines.

Strategic Expansion and Diversified Funding

ADCB has strengthened its funding base through international capital markets. In May 2025, the bank issued its second Formosa bond worth $600 million, which was oversubscribed, reflecting high investor confidence.

The bank added more than 68,000 new retail customers—mainly via digital channels—during Q2 2025. It also acquired over 125 new corporate and government-related entity clients and established 2,200+ new SME banking relationships.

Innovative Offerings and Technological Leadership

In Q2 2025, ADCB launched “Medaf,” a new independent company based in Abu Dhabi Global Market, focused on transforming financial operations using cutting-edge technology. It also received approval from the Central Bank to participate in the UAE’s open finance platform “Al Tareq,” successfully executing its first transaction.

The bank continues to roll out AI-powered services, including a smart engine in its mobile app to personalize credit card offerings. It also grew fee-based income from wealth management services by 35% in retail and 58% in private banking, supported by new structured investment products.

Strong Regional Presence

ADCB Egypt posted a 39% year-on-year increase in net profit during H1 2025, driven by strong loan portfolio growth. Meanwhile, Al Hilal Bank continued to advance its digital strategy and attract more deposit flows.

ADCB’s performance highlights its commitment to delivering sustainable growth, supported by strong capital discipline, sound risk management, and proactive ESG and climate disclosure initiatives. The bank is well-positioned to continue generating long-term value for shareholders and customers.