Abu Dhabi Islamic Bank

1. Company Overview & Earnings Context

Abu Dhabi Islamic Bank (ADIB) is one of the UAE's leading Islamic financial institutions, providing retail, corporate, business, private banking, and wealth management services across the UAE and key international markets. During H1 2026, the bank surpassed AED 300 billion in total assets for the first time, highlighting the continued strength of its franchise and sustained business growth.

For H1 2026, ADIB delivered another strong financial performance, supported by robust customer financing growth, continued customer acquisition, diversified revenue streams, disciplined cost management, and improving asset quality. The bank added approximately 125,000 new customers during the first half of the year while maintaining industry-leading profitability.

2. Financial Performance Snapshot

• Total Operating Income: AED 6.5 Billion

• Funded Income: AED 4.1 Billion

• Non-Funded Income: AED 2.4 Billion

• Operating Expenses: AED 1.9 Billion

• Provision for Impairment: AED 301 Million

• Profit Before Tax: AED 4.3 Billion

• Tax Expense: AED 554 Million

• Net Profit After Tax: AED 3.8 Billion

• Earnings Per Share (EPS): AED 0.93

Compared with H1 2025:

• Total operating income increased 9% to AED 6.5 billion.

• Funded income increased 14% to AED 4.1 billion.

• Non-funded income increased 3% to AED 2.4 billion.

• Profit before tax increased 9% to AED 4.3 billion.

• Net profit after tax increased 8% to AED 3.8 billion.

• Earnings per share increased 8% to AED 0.93.

3. Operational Highlights & Key Metrics

• Total Assets: AED 304 Billion

• Gross Customer Financing: AED 210 Billion (+26% YoY)

• Customer Deposits: AED 246 Billion (+15% YoY)

• Total Equity: AED 32.3 Billion

• Return on Equity (ROAE): 28.2%

• Return on Assets (ROAA): 2.66%

• Net Profit Margin: 3.78%

• Cost-to-Income Ratio: 29.0%

• Cost of Risk: 0.33%

• Non-Performing Asset (NPA) Ratio: 2.2%

• NPA Coverage Ratio: 108.1%

• CASA Ratio: 64%

• CET1 Ratio: 12.2%

• Capital Adequacy Ratio: 15.6%

• New Customers Added: 125,000

4. Key Performance Drivers

ADIB's strong H1 2026 performance was driven by broad-based financing growth across both retail and wholesale banking, a 26% increase in customer financing, solid deposit growth, and continued customer acquisition. Revenue growth was supported by higher funded income, stronger fee, card, foreign exchange, and trade-related income, while disciplined pricing helped maintain healthy margins. The bank continued investing in talent, technology, and digital capabilities while keeping its cost-to-income ratio below 30%. Asset quality also strengthened, with the non-performing asset ratio declining to a record low of 2.2% and provision coverage improving further.

5. Outlook & Forward Guidance

Management remains optimistic about the UAE's economic outlook and expects continued growth across both retail and wholesale banking. ADIB plans to deepen customer relationships, expand financing opportunities, continue investing in digital capabilities and innovation, strengthen its funding profile, and maintain disciplined risk management while delivering sustainable long-term profitability.

6. Investor Takeaway

ADIB delivered another high-quality set of H1 2026 results, combining strong earnings growth with robust financing expansion, excellent asset quality, and industry-leading profitability. With record assets exceeding AED 300 billion, a strong capital position, expanding digital capabilities,