Abu Dhabi Commercial Bank posted a 26% jump in second-quarter profit, driven by stronger lending, higher fee income, and improved asset quality.
Abu Dhabi Commercial Bank (ADCB) reported record second-quarter and first-half earnings, supported by strong loan growth, higher fee income, improved asset quality, and disciplined cost management.
Abu Dhabi Commercial Bank posted a record second-quarter profit before tax of Dh3.83 billion, up 26% from the same period last year, extending its streak to 20 consecutive quarters of profit growth.
For the first six months of 2026, profit before tax rose 28% year-on-year to a record Dh7.61 billion, while net profit after tax increased 34% to Dh6.74 billion, the bank announced on Thursday.
The year-on-year comparison was affected by different tax rates applied in the two periods. ADCB said its first-half 2025 tax provision reflected the UAE’s domestic minimum top-up tax at 15%, while it applied the statutory 9% corporate tax rate in the first half of 2026 after qualifying for an international activity exclusion.
Lending and Deposits Continue to Grow
ADCB’s balance sheet expanded steadily during the first half of the year.
Net loans to customers increased by Dh42 billion to Dh445 billion, representing 10% growth since the end of 2025 and 18% growth compared with a year earlier.
Customer deposits rose by Dh27 billion to Dh527 billion, up 5% year-to-date and 14% year-on-year, while total assets reached Dh833 billion, an increase of 16% from June 2025.
Group CEO Ala’a Eraiqat said the results reflected both the strength of ADCB’s franchise and the resilience of the UAE economy despite regional geopolitical developments.
He added that the bank continues to see strong opportunities across sectors including energy, transport, logistics, infrastructure, tourism, and artificial intelligence.
Higher Fee Income Boosts Revenue
Operating income for the first half climbed 12% to Dh11.98 billion.
Non-interest income increased 22% year-on-year to Dh4.51 billion, accounting for 38% of total operating income.
During the second quarter, higher fee income and trading activity helped lift non-interest income by 12% from a year earlier.
Group Chief Financial Officer Deepak Khullar said diversified revenue streams and disciplined cost management continued to improve profitability.
The bank’s cost-to-income ratio improved to 26.8%, down 90 basis points from the same period last year.
Asset Quality Continues to Improve
ADCB also reported stronger credit quality during the quarter.
The cost of risk declined to 36 basis points in the second quarter from 88 basis points a year earlier. For the first half, the measure improved to 38 basis points, down from 69 basis points in the corresponding period of 2025, and remained below the bank’s guidance.
The non-performing loan ratio improved to 1.71%, compared with 1.83% at the end of 2025.
Meanwhile, return on average equity after tax increased to 16.2%, up 210 basis points year-on-year.
The bank’s Common Equity Tier 1 (CET1) ratio stood at 13.66%, while its liquidity coverage ratio was 109.5%, comfortably above regulatory requirements despite moderating from the end of last year.
AI Strategy Supports Future Growth
ADCB said it continued rolling out its artificial intelligence strategy during the quarter by integrating AI across customer service, employee productivity, and internal operations.
The bank also launched an AI-powered mobile banking application as part of its broader digital transformation programme.
Now in the second year of its five-year growth strategy, ADCB said its strong capital position, healthy liquidity, and expanding loan pipeline leave it well positioned to support further lending and investment throughout the remainder of 2026.
Source: Gulf News
