ADCB reports 20% YoY rise in profit before tax to AED 2.907 bn in Q1'25, with net profit after tax(1) at AED 2.446 bn
Selected financial metrics for Q1'25
2.907 bn
Profit before tax (AED)
2.446 bn
Net profit after tax(1) (AED)
13.7%
Return on average equity (post-tax)
29.2%
Cost to income ratio
+13%
Net loan growth (YoY)
+15%
Customer deposit growth (YoY)
0.49%
Cost of risk
2.24%
Non-performing loan ratio
12.59%
CET1 ratio
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15th consecutive quarter of growth (2) in profit before tax marked by well-diversified income streams and improved efficiencies amid continued strength in UAE economic fundamentals
Key highlights – Q1'25 vs. Q1'24 Profit before tax of AED 2.907 bn increased 20%
Net profit after tax (1) stood at AED 2.446 bn
Net interest income of AED 3.394 bn increased 3%
Non-interest income of AED 1.619 bn increased 26%
Operating income of AED 5.013 bn increased 9%
Cost to income ratio of 29.2% improved by 170 basis points
Operating profit before impairment charge of AED 3.548 bn increased 12%
15th consecutive quarter of growth(2) in profit before tax marked by well-diversified income streams and improved efficiencies amid continued strength in UAE economic fundamentals
Key highlights – Q1'25 vs. Q1'24
Profit before tax of AED 2.907 bn increased 20%Net profit after tax(1) stood at AED 2.446 bnNet interest income of AED 3.394 bn increased 3%Non-interest income of AED 1.619 bn increased 26%Operating income of AED 5.013 bn increased 9%Cost to income ratio of 29.2% improved by 170 basis pointsOperating profit before impairment charge of AED 3.548 bn increased 12%
(1) For Q1 2025, ADCB has provisioned for tax at a rate of 15% based on the Domestic Minimum Top-up Tax (DMTT) introduced by the UAE on 1 January 2025, versus the 9% corporate income tax rate applied in 2024. Therefore, year-on-year comparison is not on a like-for-like basis. For more information, please see note 3 of Q1'25 financial statements
(2) Excluding net loss on discontinued operations (as applicable) and one-off gain recorded from the divestment of an 80% stake in Abu Dhabi Commercial Properties (ADCP) in Q4'23
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Continuation of strong loan and deposit growth, accompanied by high asset quality
Total assets of AED 680 bn increased 14% YoY and 4% QoQNet loans of AED 359 bn were up 13% YoY (AED 41 bn) and 3% QoQ (AED 9 bn)Total customer deposits of AED 442 bn increased 15% YoY (AED 58 bn) and 5% QoQ (AED 21 bn)Current and savings account (CASA) deposits increased 10% YoY (AED 18 bn) and 6% QoQ (AED 12 bn) to AED 198 bn at March-end, accounting for 45% of total customer depositsCapital adequacy and CET1 ratios were 16.07% and 12.59% respectively compared to 16.13% and 12.56% as at Dec-endLiquidity coverage ratio (LCR) stood at 138.6%, while loan to deposit (LTD) ratio was 81.4%Cost of risk improved to 0.49% in Q1'25 from 0.72% in Q4'24 and 0.67% in Q1'24. The NPL ratio improved further to 2.24% from 3.04% at Dec-end and 3.44% in March'24. Provision coverage ratio was 150.1%, up from 110.0% at Dec-end, when including collateral it was 260%
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Key recent business and operational highlights
In January 2025, ADCB launched an ambitious five-year strategy aimed at doubling net profit to AED 20 billion by 2030, while delivering sustained growth in dividends and return on equity. Aligned with the UAE's economic transformation, the strategy sets clear targets and prioritises digital innovation, customer experience, sustainability and long-term value creation for shareholders.
In January 2025, Al Hilal Bank appointed Jamal Al Awadhi as Chief Executive Officer to lead its next phase of digital growth. With a strong track record in innovation and leadership, Jamal Al Awadhi will drive the Bank's ambition to redefine Shari'ah-compliant digital retail banking in the UAE.
ADCB announced in January 2025 that it had achieved 100% Emiratisation across all banking roles in its Al Ain branches – a first for the UAE financial sector. This milestone underscores the Bank's leadership in empowering national talent and supporting the UAE's Emiratisation agenda.
ADCB was included in the FTSE4Good Index Series in January 2025, reflecting strong performance across environmental, social, and governance (ESG) criteria. The independent assessment by FTSE Russell places ADCB above the global financial industry average, further elevating its profile among ESG-focused investors.
In March 2025, ADCB's long-term credit rating was upgraded to 'A+' by S&P Global Ratings, placing the Bank among its top three highest-rated banks in the MENA region. The upgrade reflects ADCB's strong financial position, high asset quality, and disciplined risk management.
In April 2025, ADCB launched Meedaf, a pioneering financial services venture designed to help banks and financial institutions across the UAE and GCC region enhance operational efficiency, reduce costs, and remain competitive through innovation and advanced technologies.
In April 2025, ADCB was named the strongest banking brand in the UAE, with its brand value rising 17% year-on-year to AED 12.3 billion, according to Brand Finance's latest global rankings. The Bank achieved a brand strength score of 81.5 ('AAA-') and climbed seven places to 102nd globally.
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Commentary on Q1'25 financial results
ADCB entered 2025 with solid momentum, embarking on a new Board-endorsed five-year strategy to drive long-term sustainable expansion. The Bank recorded a 15th consecutive quarter of growth in profit before tax, which rose 20% year on year to AED 2.907 billion, marked by high-quality growth across core businesses. First-quarter net profit after tax(1) was AED 2.446 billion, delivering a return on average equity of 13.7%.
In the first quarter, the Bank continued to benefit from well-balanced income streams, with operating income rising 9% year on year, primarily driven by a sharp 26% increase in non-interest income across all main line items. In parallel with top-line growth, ADCB delivered further gains in operational efficiency, with the cost-to-income ratio improving by 170 basis points year on year to 29.2% in the first quarter. Operating expenses decreased 6% quarter on quarter as the Bank continued to focus on disciplined cost management while deploying targeted investment in talent and technology to drive higher productivity and an enhanced customer experience.
The UAE's robust economic fundamentals continued to support a healthy credit pipeline. Net loans increased by approximately AED 9 billion during the quarter, led by the financial institutions, energy and transport and communication sectors, while exposure to government-related entities (GREs) remained significant at 27% of gross loans. Notably, asset quality continued to strengthen considerably, with the non-performing loan ratio declining to 2.24%, while cost of risk improved by 18 basis points year on year to 0.49%, remaining within our guidance.
The strong financial position was recognised in March with an upgrade by S&P Global Ratings to a credit rating of 'A+', placing ADCB among its three highest-rated banks in the MENA region, reflecting the robust capital base, asset quality, risk management culture and control framework. The ratings upgrade affirmed the Bank's position as a high quality issuer in international capital markets. ADCB successfully priced a USD 600 million dual-listed Formosa bond in February at a favourable spread of 105 basis points above SOFR with the issuance allocated predominantly to Asian investors due to strong demand.
ADCB's trusted franchise and a strategic focus on service excellence are driving customer growth and substantial inflows of deposits, which increased by AED 21 billion in the first quarter, including AED 12 billion of current and savings account (CASA) deposits. This leading market position was reflected in a 17% year on year increase in our brand value to AED 12.3 billion, according to the 2025 Brand Finance report, placing ADCB as the highest-rated banking brand in the UAE, for the second 2024 consecutive year.
(1) For Q1 2025, ADCB has provisioned for tax at a rate of 15% based on the Domestic Minimum Top-up Tax (DMTT) introduced by the UAE on 1 January 2025, versus the 9% corporate income tax rate applied in 2024. Therefore, year-on-year comparison is not on a like-for-like basis. For more information, please see note 3 of Q1'25 financial statements
(2) Excluding net loss on discontinued operations (as applicable) and one-off gain recorded from the divestment of an 80% stake in Abu Dhabi Commercial Properties (ADCP) in Q4'23
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Enhanced efficiencies and business growth
ADCB's investment in digital and AI technologies is delivering tangible impact, enabling the Bank to serve a fast-growing customer base with greater speed, convenience, and efficiency. In the first quarter, the Retail Banking Group (RBG) welcomed over 89,000 new customers, with 71% onboarded through digital channels.
Key digital transformation initiatives were rolled out during the quarter, including multi-CASA and multi-currency account opening features and enhancements to automated approval processes. As a result, an increasing share of credit card and personal loan applications were approved through straight-through processing, with no human intervention. In parallel, targeted AI initiatives were launched to support revenue generation, improve customer experience and drive efficiencies at an enterprise-wide level.
The Corporate and Investment Banking Group (CIBG) continued to deepen and diversify its client base, establishing over 100 new banking relationships in the large corporate and GRE segment during the quarter. In the SME and mid-sized corporate segment, more than 2,000 new relationships were added. CIBG maintains a market-leading fee-to-income ratio, supported by an expanding working capital proposition, as well as cross-border transaction banking and liquidity management capabilities. The Group reinforced its capital markets advisory profile through lead roles in a number of key transactions, including a USD 500 million green sukuk issuance by Aldar Properties and a USD 1 billion sukuk issued by the Ras Al Khaimah Investment and Development Office.
The Private Banking and Wealth Management Group continued its strong trajectory, recording a 46% increase in assets under management (AUM) over the past 12 months. ADCB Private's offering of investment advisory alongside core banking services is attracting significant numbers of high-net-worth individuals, with 7% growth in clients during the quarter.
Launch of Meedaf to unlock new income streams
In line with the five-year strategy launched in January, which aims to double net profit to AED 20 billion by 2030, ADCB has unveiled Meedaf, a strategic venture designed to expand beyond traditional banking and unlock new income streams. Launched in early April and operating within Abu Dhabi Global Market (ADGM), Meedaf will provide specialised operational services to financial institutions across the UAE and GCC, leveraging advanced digital solutions to enhance efficiency and create long-term value across the sector.
Meanwhile, ADCB continues to make strong progress in embedding global best practices across its sustainability framework. The Bank has published its 2024 ESG Report, which includes its first double materiality assessment aligned with GRI and IFRS standards, extensive stakeholder engagement across the value chain, and third-party assurance of Scope 3 financed emissions. The Bank's approach to ESG has been recognised through a 'Regional top-rated' badge by Sustainalytics for the Middle East and Africa region. ADCB is also contributing to national sustainable finance policy development as a knowledge partner to the Global Climate Finance Centre (GCFC), working alongside key UAE government entities to help shape sector-wide ESG KPIs and targets for 2025.
A strong capital base, diversified business model, and a disciplined approach to risk management form the robust foundations for ADCB's enduring expansion and resilience. The Bank benefits from a business-friendly operating environment in the UAE, which continues to grow as a preferred destination for capital and talent. ADCB remains well equipped to navigate global market and economic uncertainty, to create sustainable value while contributing to the stability and development of the economy.
© 2000 - 2025 Al Bawaba (www.albawaba.com)
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Al Bawaba
15-07-2025
- Al Bawaba
ADCB reports profit before tax of AED 5.942 bn in H1'25, up 18% YoY and AED 3.035 bn in Q2'25, up 17% YoY
Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the second quarter 2025 (Q2'25).Focused execution of new strategy delivers 22% YoY increase in H1'25 operating profit and all-time low quarterly cost to income ratio of 26.4%.Key highlights – H1'25 vs. H1'24Profit before tax of AED 5.942 bn increased 18%Net profit after tax(1) stood at AED 5.014 bnNet interest income of AED 7.048 bn increased 7%Non-interest income of AED 3.693 bn increased 36%Operating income of AED 10.741 bn increased 15%Cost to income ratio of 27.7% improved by 400 basis pointsOperating profit before impairment charge of AED 7.766 bn increased 22%Key highlights – Q2'25 vs. Q2'24Profit before tax of AED 3.035 bn increased 17%Net profit after tax(1) stood at AED 2.568 bnNet interest income of AED 3.654 bn increased 12%Non-interest income of AED 2.074 bn increased 44%Operating income of AED 5.728 bn increased 22%Cost to income ratio of 26.4% improved by 620 basis pointsOperating profit before impairment charge of AED 4.218 bn increased 33%(1) For H1 2025, ADCB has provisioned for tax at a rate of 15% based on the Domestic Minimum Top-up Tax (DMTT) introduced by the UAE on 1 January 2025, versus the 9% corporate income tax rate applied in 2024. Therefore year-on-year comparison is not on a like-for-like trajectory of balance sheet growth, with net loans increasing AED 28 bn (+8%) and deposits up AED 42 bn (+10%) in H1'25 supported by focus on CASA assets of AED 719 bn increased 17% YoY and 10% YTDNet loans of AED 378 bn were up 14% YoY (AED 46 bn) and 8% YTD (AED 28 bn)Total customer deposits of AED 463 bn increased 19% YoY (AED 73 bn) and 10% YTD (AED 42 bn)Current and savings account (CASA) deposits increased 21% YoY (AED 35 bn) and 11% YTD (AED 21 bn) to AED 207 bn at June-end, accounting for 45% of total customer depositsCapital adequacy and CET1 ratios were 15.53% and 12.21% respectivelyLiquidity coverage ratio (LCR) stood at 135.2%, while loan to deposit (LTD) ratio was 81.7%The NPL ratio improved further to 2.02% from 3.04% at December-end. Provision coverage ratio was 173.1%, up from 110.0% at December-end, and, when including collateral, it was 279%.Commentary on Q2/H1 2025 financial resultsADCB is delivering strong and consistent progress on its strategic agenda in the context of favourable economic conditions in the UAE. Profit before tax increased 17% year on year to AED 3.035 billion in the second quarter – extending the Bank's track record of consecutive quarterly growth to four years – and rose 18% year on year to AED 5.942 billion in the first half. On a post-tax basis, net profit(1) was AED 2.568 billion in the second quarter and AED 5.014 billion in the six month period, delivering a return on average equity of 14.9% and 14.1% the first half, ADCB achieved an exceptional underlying operational and financial performance across all core businesses, generating a 22% year on year increase in operating profit. Driven by a clear focus to reach the ambitious targets set out in the recently launched five-year strategy, the Bank has delivered double-digit revenue growth powered by diverse sources of non-interest income, continued robust credit expansion across major economic sectors, and attracted substantial inflows of CASA deposits. Above all, this strong growth trajectory is marked by disciplined cost management and compounding productivity gains from digital and AI transformation. This step-change in efficiency has improved the cost-to-income ratio to an all-time quarterly low of 26.4% in the second quarter – a reduction of 620 basis points year on considerable progress over the last year, has been reflected in a 12-month total shareholder return of 75% as ADCB's market capitalisation crossed the AED 100 billion milestone. The Bank remains committed to creating further value in the coming period and delivering on its five-year delivered robust top-line growth in the first half of 2025, with a 15% year-on-year increase in operating income driven by continued customer acquisition, deeper client engagement, and a broadening suite of products and services. While net interest income increased 7% year on year, non-interest income continues to serve as a key driver of the Bank's growth, surging 36% year on year in the first half. With strong momentum across fee and trading income, non-interest income accounted for 34% of total operating income in the first six months, up from 29% in the prior sheet growth remains strong amid healthy consumer and business confidence and ample system liquidity. The Bank is achieving broad-based credit growth, with net loans increasing AED 28 billion during the first half of the year to AED 378 billion, supporting growth across diverse sectors of the UAE and regional economy. Key areas of growth included energy, trading, financial institutions, transport and communication, and the portfolio remains well balanced, with government-related entities (GREs) comprising 24% of gross accelerated loan growth of 10% CAGR over the last five years has been characterised by high credit quality. The Bank maintains a disciplined approach to risk management and proactively aligns with the UAE Central Bank's new credit risk management standards. Impairments recorded in the second quarter stemmed largely from legacy corporate accounts, and the Bank's full-year and five-year cost of risk guidance remains unchanged at below 60 basis ADCB's strong franchise is attracting substantial inflows of customer deposits, which rose by AED 42 billion in the first half to AED 463 billion. Current and savings account (CASA) deposits increased by AED 21 billion during the first half driven by both the Retail Banking and Corporate and Investment Banking businesses, supporting a favourable cost of funds for the the context of robust loan growth and a healthy credit pipeline, ADCB continues to expand and diversify its wholesale funding base, leveraging its strong standing in international capital markets. In May, ADCB priced its second five-year Formosa bond of the year, issuing USD 600 million at SOFR +100 basis points, achieving tighter pricing than the Bank's similar February transaction. 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The Bank onboarded over 125 new clients in the large corporate and GRE segments in the second quarter, while establishing more than 2,200 new banking relationships within the SMEs and midsized corporates. ADCB is also further reinforcing its position in regional capital markets, acting as joint lead manager and bookrunner on several landmark transactions during the second quarter, including sukuk issuances for DP World, ADNOC, and the Public Investment Fund (PIF) of Saudi parallel, the Bank is progressing at pace on its sustainable finance and ESG agenda, strengthening ratings performance, and making significant progress on climate commitments, including preparation for the disclosure of NZBA-aligned targets for key economic Egypt continues to deliver a strong financial and operating performance, with first-half net profit increasing 39% year on year driven by significant loan growth. 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As Open Finance gains traction, ADCB is well positioned to be at the forefront of this new vibrant ecosystem, embedding its services more deeply into digital platforms and accelerating the delivery of more personalised, accessible, and intelligent financial experiences. ADCB remains firmly focused on delivering sustainable growth through disciplined capital deployment and prudent risk management. With strong business fundamentals, the Bank is well positioned to create significant value and consistent returns for shareholders through close alignment with the ongoing growth and diversification of the UAE economy. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Al Bawaba
07-05-2025
- Al Bawaba
ADNOC distribution reports highest first-quarter ebitda, with 11% year-on-year growth
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Al Bawaba
06-05-2025
- Al Bawaba
Emirates expands footprint into Eastern China with launch of daily Dubai-Hangzhou flights
Dubai, UAE, 6 May 2025 – Emirates, the world's largest international airline, is set to launch a daily non-stop service between Dubai and Hangzhou from 30 July*. The airline's latest expansion into Hangzhou makes the city its fifth gateway into the Chinese mainland after Beijing, Guangzhou, Shanghai, and Shenzhen. The new service will operate with a three-class Boeing 777-300ER, with a total capacity of 2,478 weekly seats. Emirates flight EK310 will depart Dubai at 0940hrs and arrives in Hangzhou at 2200hrs. The return flight, EK311, will depart Hangzhou at 0010hrs, landing in Dubai at 04:55hrs.** The new flights are optimally timed to connect travellers to 38 destinations in Europe, 22 in Africa, 11 in the Middle East as well as Brazil and Argentina, offering convenient two-way connections to key cities including Istanbul, Barcelona, Cairo and Johannesburg. Adnan Kazim, Emirates' Deputy President and Chief Commercial Officer, commented on the airline's latest expansion into the Chinese mainland: 'Launching a new Dubai-Hangzhou route marks a pivotal moment in our operations in the Chinese mainland and broader East Asia region. As an emerging global hub for innovation, e-commerce and advanced manufacturing, Hangzhou will open doors to new opportunities for our passenger and cargo operations, further strengthening the vital economic and technological exchanges between the Middle East and China.' He added: 'The addition of a fifth gateway in our Chinese mainland network will not only enhance connectivity for travellers but also offer businesses efficient access to and from key East Asian markets. This expansion is part of our global growth strategy and positions Emirates as the preferred airline when linking the world to the Chinese mainland's thriving economic corridors and beyond. We extend our gratitude to the local authorities for their valuable support of this strategic new route and look forward to collaborating closely towards our shared goals of enhanced global connectivity.' A rising tech powerhouse The capital of Zhejiang Province, Hangzhou, is rapidly growing to become a global hub for innovation, e-commerce, and technological advancements. Home to Alibaba Group, the city is a driving force in China's digital economy, with cross-border e-commerce exports projected to exceed AED 70 billion (140 billion Chinese yuan) by 2026[1]. Its blend of historical heritage —including the UNESCO-listed West Lake, Leifeng Pagoda, the Imperial Street of the Southern Song Dynasty, and the Archaeological Ruins of Liangzhu City— as well as thriving tech industry will offer unique and diverse opportunities for Emirates' travellers to visit and explore the city. By embracing artificial intelligence, big data, and cloud computing, Hangzhou attracts numerous tech start-ups and innovation centres from all over the world. In 2024, the revenue generated by the city's core digital economy industries exceeded AED 1 trillion (2 trillion Chinese yuan), accounting for 28.8% of the city's GDP and highlighting the central role it plays in driving local economic growth.[2] Serving passengers and cargo Emirates' Boeing 777-300ER will offer travellers 8 First Class suites, 42 angle-flat Business Class seats and 304 ergonomically designed Economy Class seats. Travellers flying with Emirates to Hangzhou will also enjoy the airline's award-winning inflight entertainment system ice, offering over 6,500 channels of on-demand entertainment in more than 40 languages including Chinese, as well as regionally inspired cuisine including popular Chinese dishes and desserts. With its extensive network and state-of-the-art facilities, Emirates SkyCargo will further strengthen economic and trade ties between China and the UAE, while reinforcing Hangzhou's role as a major cargo hub and cross-border e-commerce gateway. Emirates SkyCargo will leverage the new Hangzhou route to enhance its cargo footprint across East Asia, meeting rising demand for reliable air freight solutions. The service will also reduce transit times, enabling faster, more efficient movement of high-value and time-sensitive goods, including electronics, e-commerce products, pharmaceuticals, and perishables between the Chinese market and key regions including Africa, Latin America, and the Gulf Cooperation Council (GCC). From 30 July, Emirates will operate 49 weekly flights to the Chinese mainland, including double daily services to Beijing and Shanghai, daily flights to Guangzhou and Shenzhen, and the new daily service to Hangzhou. The airline's continued expansion into the Chinese mainland reflects the deepening UAE-China bilateral ties and underscores Emirates' longstanding commitment to advancing the objectives of the Belt and Road Initiative. Serving as a vital link between China and emerging markets across Africa, the Middle East, and South America via Dubai, Emirates is well-positioned to seamlessly connect tech professionals, entrepreneurs, and investors from these high-growth regions to Hangzhou - a dynamic centre of technology and innovation. For more information or to book tickets, visit Tickets can also be booked on the Emirates App, Emirates Retail stores, Emirates contact centre, or via travel agents. WeChat Pay is available on for customers in China.
