Abu Dhabi Commercial Bank (ADCB) reported a record profit before tax of Dh3.83 billion for the second quarter of 2026, marking a 26% increase compared with the same period last year. The strong performance was supported by sustained loan growth, rising fee-based income, and improved asset quality, reinforcing the bank's position as one of the UAE's leading financial institutions.
The latest results mark ADCB's 20th consecutive quarter of year-on-year profit growth, highlighting the bank's consistent financial performance despite evolving regional and global economic conditions.
For the first six months of 2026, profit before tax reached a record Dh7.61 billion, representing a 28% increase from the corresponding period last year. Net profit after tax climbed 34% to Dh6.74 billion, although the year-on-year comparison reflects changes in the tax rate applied during the two reporting periods.
The bank attributed part of the increase in net profit to the application of the UAE's standard 9% corporate tax rate during the first half of 2026 after qualifying for an international activity exclusion. In comparison, the first half of 2025 reflected a 15% tax provision following the implementation of the UAE Domestic Minimum Top-up Tax.
ADCB Group Chief Executive Officer Ala’a Eraiqat said the results reflected both the strength of the bank's business model and the resilience of the UAE economy.
He noted that investment activity and consumer confidence remained strong across the country despite regional developments, providing continued opportunities for growth across sectors including energy, infrastructure, logistics, tourism, transportation, and artificial intelligence.
The bank's lending portfolio continued to expand during the first half of the year. Net loans to customers increased by Dh42 billion to reach Dh445 billion, representing growth of 10% since the end of 2025 and 18% compared with a year earlier.
Customer deposits also strengthened, rising by Dh27 billion to Dh527 billion, while total assets grew to Dh833 billion, reflecting continued expansion across the balance sheet.
Revenue growth was supported by a diversified income base. Operating income increased 12% year-on-year during the first half to Dh11.98 billion, while non-interest income rose 22% to Dh4.51 billion, accounting for 38% of total operating income.
During the second quarter alone, non-interest income increased 12%, driven primarily by higher fee income and stronger trading revenues.
Group Chief Financial Officer Deepak Khullar said disciplined cost management and productivity initiatives contributed to improved operating efficiency. The bank's first-half cost-to-income ratio improved to 26.8%, reflecting continued focus on operational performance.
ADCB also reported further improvements in asset quality. The cost of risk declined to 36 basis points during the second quarter from 88 basis points a year earlier. For the first half, the cost of risk improved to 38 basis points, remaining below the bank's guidance.
Meanwhile, the non-performing loan ratio improved to 1.71% at the end of June, down from 1.83% at the close of 2025, indicating continued stability in the bank's credit portfolio.
Capital levels remained robust, with the Common Equity Tier 1 (CET1) ratio standing at 13.66%, while the liquidity coverage ratio was 109.5%, remaining comfortably above regulatory requirements.
Alongside its financial performance, ADCB continued advancing its digital transformation strategy during the quarter. The bank expanded the use of artificial intelligence across customer service, employee productivity, and business operations, including the launch of an AI-enabled mobile banking application.
Currently in the second year of its five-year strategic plan, ADCB said its strong capital position, healthy liquidity, and ongoing technology investments are expected to support continued lending growth and business expansion throughout the remainder of 2026.
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