Abu Dhabi Commercial Bank

1. Company Overview & Earnings Context

Abu Dhabi Commercial Bank (ADCB) delivered a record H1 2026 performance, reporting its highest-ever first-half profit before tax of AED 7.61 billion, up 28% year-on-year. The Bank also achieved a record quarterly profit before tax of AED 3.83 billion in Q2 2026, marking its 20th consecutive quarter of profit growth. Performance was driven by strong loan expansion, higher non-interest income, disciplined cost management, improving asset quality, and continued investment in AI and digital transformation. Management highlighted healthy customer demand across the UAE economy, supported by strong capital and liquidity positions.

2. Financial Performance Snapshot

• Total operating income: AED 11.98B (+11.5% YoY)

• Net interest & Islamic financing income: AED 7.47B (+6.0% YoY)

• Non-interest income: AED 4.51B (+22.1% YoY)

• Operating profit before impairment: AED 8.77B (+12.9% YoY)

• Impairment charge: AED 1.17B (-35.9% YoY)

• Profit before tax: AED 7.61B (+28.0% YoY)

• Income tax charge: AED 870M (-6.3% YoY)

• Net profit: AED 6.74B (+34.4% YoY)

• Basic EPS: AED 0.82 (+30.2% YoY)

Compared with H1 2025:

• Operating income increased from AED 10.74B to AED 11.98B.

• Profit before tax increased from AED 5.94B to AED 7.61B.

• Net profit increased from AED 5.01B to AED 6.74B.

• Basic earnings per share rose from AED 0.63 to AED 0.82.

3. Operational Highlights & Key Metrics

• Total assets: AED 833.2B (+16% YoY)

• Net loans & advances: AED 444.6B (+18% YoY)

• Customer deposits: AED 526.6B (+14% YoY)

• Net interest earning assets: AED 703.2B (+16% YoY)

• Return on average equity (ROAE): 16.2%

• Cost-to-income ratio: 26.8%

• Cost of risk: 38 bps

• Non-performing loan (NPL) ratio: 1.71%

• Provision coverage ratio: 159.4%

• Common Equity Tier 1 (CET1): 13.66%

• Capital adequacy ratio (CAR): 16.50%

• Liquidity Coverage Ratio (LCR): 109.5%

• Loan-to-deposit ratio: 84.4%

The Bank delivered AED 42 billion of net loan growth and AED 27 billion of customer deposit growth during the first half while maintaining strong asset quality and robust liquidity.

4. Key Performance Drivers

ADCB's strong earnings were driven by broad-based lending growth across multiple sectors of the UAE economy, alongside a significant increase in fee income, trading income, and other non-interest revenues. Non-interest income accounted for nearly 38% of operating income, highlighting continued revenue diversification. Lower impairment charges, improving asset quality, disciplined expense management, and ongoing productivity improvements further supported profitability. During the quarter, ADCB also accelerated the integration of artificial intelligence across customer services and business operations, including launching its new AI-enabled mobile banking application.

5. Outlook & Forward Guidance

Management stated that ADCB remains on track to achieve its five-year strategic targets. The Bank continues to guide for ROE above 15%, CET1 above 12%, and cost of risk below 60 basis points. Management expects sustained growth supported by continued investment across energy, infrastructure, logistics, tourism, transport, and artificial intelligence, with the UAE's strong economic fundamentals providing a supportive backdrop for future expansion.

6. Investor Takeaway

ADCB delivered another exceptional set of results, extending its record of consistent earnings growth with its 20th consecutive quarter of higher profit before tax. Strong loan expansion, accelerating non-interest income, improving credit quality, disciplined cost control, and solid capital ratios continue to strengthen the Bank's financial position. Combined with its ongoing digital transformation and AI initiatives, ADCB remains well positioned to deliver sustainable long-term shareholder value while executing its five-year growth strategy.