ADCB reports profit before tax of 5.942 bn in H1’25, up 18% YoY and 3.035 bn in Q2’25, up 17% YoY The Bank reports net profit after tax(1) of 5.014 bn in H1’25 and 2.568 bn in Q2’25

Abu Dhabi Commercial Bank PJSC (ADCB) today reported its financial results for the second quarter 2025 (Q2’25).

Selected financial metrics for H1’25
5.942 bn Profit before tax (AED)	5.014 bn Net profit after tax (AED)	14.1% Return on average equity (post tax)
27.7% Cost to income ratio	+28 bn Net loan growth YTD (AED)	+42 bn Customer deposit growth YTD (AED)
2.02% Non-performing loan ratio	173.1% Provision coverage ratio	12.21% CET1 ratio

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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. H1’24

• Profit before tax of AED 5.942 bn increased 18%
• Net profit after tax(1) stood at AED 5.014 bn
• Net 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 points
• Operating profit before impairment charge of AED 7.766 bn increased 22%

Key highlights – Q2’25 vs. Q2’24

• Profit before tax of AED 3.035 bn increased 17%
• Net profit after tax(1) stood at AED 2.568 bn
• Net 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 points
• Operating 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 basis

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Strong 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 deposits

• Total assets of AED 719 bn increased 17% YoY and 10% YTD
• Net 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 deposits
• Capital adequacy and CET1 ratios were 15.53% and 12.21% respectively
• Liquidity 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%

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Commentary on Q2/H1 2025 financial results

ADCB 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% respectively.

In 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 year.

The 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 guidance.

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 basis
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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ADCB 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 year.

Balance 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 loans.

ADCB’s 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 points.

Meanwhile, 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 Bank.

In 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. The issuance attracted strong demand from Asian investors, with a total order book exceeding USD 900 million.

Strong pace of business growth driven by sophisticated offering

Across core businesses, the Bank is introducing sophisticated product and service offerings to attract new customers, deepen banking relationships and open up new income streams.

ADCB’s Retail Banking business continued to deliver on its strategy to introduce new fee-generating products and drive deposit growth, while accelerating the rollout of digital and AI initiatives. While retail assets were 7% higher year on year in the first half, CASA deposits increased 25%. In the second quarter, over 68,000 new customers were onboarded, with a significant majority acquired through digital channels. The Bank maintains a leading position in digital acquisition of cards reflecting success of the digital-first strategy, and a newly launched AI-powered engine is personalising credit card recommendations on the mobile app. By focusing on its investment management proposition, ADCB is increasing fee income on assets under management, which increased 35% for Retail Banking and 58% for Private Banking over the last year. This was supported by ADCB Private’s launch of new wealth management solutions across public and private markets as well as structured products.

The Corporate and Investment Banking Group (CIBG) delivered another strong quarter, supported by a broad product and advisory offering and continued growth in client relationships. The business is achieving sustained loan and CASA deposit growth, while a focus on enhancing the working capital and transaction banking proposition is supporting a market-leading fee-to-income ratio. 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 Arabia.

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In 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 sectors.

ADCB 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. Al Hilal Bank is also making good progress on its digital-first strategy, with ongoing enhancements supporting product uptake and deposit inflows.

Driving innovation in financial services

ADCB continues to advance its innovation agenda through new initiatives aimed at shaping the future of financial services, aligned with the UAE’s strategic vision. In the second quarter, the Bank launched Meedaf, an ADGM-licensed entity providing operational services to financial institutions, which subsequently entered its first partnership, with global cash management specialist Brink’s. The collaboration harnesses advanced technology, infrastructure and operational expertise to establish elevated standards in cash management and ATM managed services throughout the UAE.

During the quarter, ADCB was also certified by the Central Bank of the UAE to participate in Al Tareq, the national Open Finance platform under its Financial Infrastructure Transformation Programme, and successfully completed the first transaction. 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.

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Ala’a Eraiqat                                           Deepak Khullar

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IRISMEDIA Dana Al Sadeq

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