Latest news with #ADCB
Zawya
21 hours ago
- Business
- Zawya
Mideast Stocks: Most Gulf markets gain as investors eye earnings
Most major stock markets in the Gulf rose in early trade on Wednesday ahead of more corporate earnings, with Dubai and Abu Dhabi bourses rising on the back of financial shares. Dubai's main share index gained 0.6%, led by a 3.3% leap in sharia-compliant lender Dubai Islamic Bank. In Abu Dhabi, the index added 0.4%, with the country's biggest lender First Abu Dhabi Bank jumping 2.5% and Abu Dhabi Commercial Bank (ADCB) increasing 2.6%, building on a 7.6% surge in the previous session to a hit record high. ADCB - the third-largest bank by assets in the United Arab Emirates - on Monday posted second-quarter net profit of 2.57 billion dirham ($699.74 million), a rise of 10.7% from the same period a year earlier. Saudi Arabia's benchmark index edged 0.2% higher, on course to snap six consecutive sessions of losses, helped by a 0.3% rise at Al Rajhi Bank. Oil prices, a catalyst for the Gulf's financial markets, rose, boosted by expectations of firm summer demand in the world's two largest consumers, the United States and China. However, gains were capped by analysts' caution about the broader economy. In Qatar, the index was flat. Meanwhile, investors sought more details on President Donald Trump's trade policy, while assessing data showing an increase in U.S. consumer prices last month. Following the data, Trump said that consumer prices were low and the Fed should bring down interest rates now. The Fed's actions have a significant impact on the Gulf region's monetary policy, as most regional currencies are pegged to the U.S. dollar. ($1 = 3.6728 UAE dirham)
Khaleej Times
2 days ago
- Business
- Khaleej Times
Abu Dhabi Commercial Bank first half net profit grows 18% to hit Dh5.9b
Abu Dhabi Commercial Bank (ADCB) on Tuesday reported a pre-tax profit of Dh5.94 billion for the first six months of 2025, up 18 per cent year-on-year, as the bank's strategic initiatives, digital transformation, and diversified income streams propelled strong growth across key metrics. Net profit after tax stood at Dh5.01 billion despite a higher tax provision under the UAE's new 15 per cent corporate tax regime. In the second quarter alone, ADCB posted a pre-tax profit of Dh3.03 billion, marking a 17 per cent year-on-year increase, while net profit after tax reached Dh2.57 billion. Operating income for Q2 rose by 22 per cent to Dh5.73 billion, supported by a surge in both interest and non-interest revenues. The bank's cost-to-income ratio fell to a record low of 26.4 per cent in Q2, reflecting a 620-basis-point improvement from a year earlier. Ala'a Eraiqat, group chief executive officer of ADCB, attributed the strong results to consistent execution of the bank's five-year strategy and favourable domestic macroeconomic conditions. 'ADCB is delivering strong and consistent progress on its strategic agenda. We have now achieved four years of consecutive quarterly profit growth. Our performance in the first half of 2025 reflects an exceptional operational and financial outcome across all our core businesses,' he said in a statement. 'Our double-digit revenue growth has been driven by robust credit expansion, continued customer acquisition, and a significant rise in non-interest income, which now accounts for 34 per cent of total operating income. This growth has been underpinned by disciplined cost control and operational efficiencies, especially from our ongoing digital and AI transformation,' Eraiqat added. The bank's net interest income rose seven per cent year-on-year in H1 2025 to Dh7.05 billion, while non-interest income soared 36 per cent to Dh3.69 billion. Operating profit before impairments increased 22 per cent to Dh7.77 billion in the first half, supported by strong growth in trading income and fee-based businesses. Deepak Khullar, group chief financial officer, highlighted ADCB's resilient balance sheet growth and strong asset quality. 'Net loans increased by Dh28 billion to reach Dh378 billion, up 8 per cent year-to-date and 14 per cent year-on-year. Deposits grew by Dh42 billion to Dh463 billion, with CASA deposits rising by Dh21 billion to Dh207 billion and now representing 45 per cent of total deposits,' Khullar said. 'Credit quality has improved significantly, with our non-performing loan (NPL) ratio reducing to 2.02 per cent from 3.04 per cent at the end of last year. Provision coverage has strengthened to 173.1 per cent, and including collateral, total coverage stands at 279 per cent,' he added. Total assets reached Dh719 billion, up 17 per cent year-on-year and 10 per cent since the start of 2025. Capital adequacy and CET1 ratios remained strong at 15.53 per cent and 12.21 per cent, respectively. Liquidity coverage ratio stood at 135.2 per cent, and the loan-to-deposit ratio was at a healthy 81.7 per cent. The bank's Retail Banking division saw significant momentum, adding over 68,000 new customers in Q2, the majority through digital channels. CASA deposits in retail rose 25 per cent year-on-year, and assets under management increased 35 per cent, driven by new investment products and personalised AI-powered offerings. The Corporate and Investment Banking Group (CIBG) also posted a strong quarter, onboarding over 125 new large corporate and GRE clients and establishing over 2,200 new SME and mid-sized corporate relationships. The group played a key role in regional capital markets, acting as joint lead manager on major sukuk issuances for DP World, ADNOC, and Saudi Arabia's Public Investment Fund. The bank also continues to innovate in financial services. In Q2, ADCB launched Meedaf, an ADGM-licensed entity providing operational services to financial institutions, and partnered with Brink's to elevate cash and ATM managed services. ADCB was among the first banks certified to participate in the UAE Central Bank's Al Tareq Open Finance platform, completing the country's first transaction under the initiative. In Egypt, ADCB's operations remained strong, with net profit rising 39 per cent year-on-year, supported by healthy loan growth. Al Hilal Bank, the group's Islamic banking arm, continued advancing its digital-first strategy, recording increased product uptake and deposit inflows. Eraiqat reaffirmed the bank's commitment to long-term value creation. 'ADCB's 12-month shareholder return of 75 per cent reflects growing investor confidence, and our market capitalisation has now crossed the Dh100 billion mark. We remain focused on sustainable growth, prudent capital deployment, and supporting the UAE.
Al Bawaba
2 days ago
- Business
- 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. The issuance attracted strong demand from Asian investors, with a total order book exceeding USD 900 pace of business growth driven by sophisticated offeringAcross core businesses, the Bank is introducing sophisticated product and service offerings to attract new customers, deepen banking relationships and open up new income 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 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 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. Al Hilal Bank is also making good progress on its digital-first strategy, with ongoing enhancements supporting product uptake and deposit 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 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. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Al Etihad
2 days ago
- Business
- Al Etihad
ADCB reports Dh5.014 billion net profit after tax in H1 2025
14 July 2025 22:45 ABU DHABI (ALETIHAD) Abu Dhabi Commercial Bank (ADCB) has reported a strong financial performance for the first half of 2025, with net profit after tax rising 13% year-on-year to Dh5.014 billion, while profit before tax increased 18% to Dh5.942 billion. The second quarter (Q2) alone saw a net profit of Dh2.568 billion and profit before tax of Dh3.035 results were driven by double-digit growth in operating income, robust credit expansion, and increased non-interest income. For H1 2025, ADCB's operating income rose 15% year-on-year to Dh10.741 billion, while operating profit before impairment allowances grew by 22% to Dh7.766 bank reported notable efficiency gains, with its cost-to-income ratio improving to 27.7% for H1. In Q2, ADCB achieved its lowest-ever quarterly cost-to-income ratio of 26.4%, reflecting ongoing productivity improvements from investments in digital transformation and artificial income rose sharply by 36% year-on-year to reach Dh3.693 billion in H1, representing 34% of total operating income — compared to 29% a year earlier. In Q2 alone, non-interest income increased 44%, led by a 43% rise in trading income and a 16% growth in fees and commission total assets grew 17% year-on-year to Dh719 billion, while net loans rose 14% to Dh378 billion. Customer deposits increased 19% to Dh463 billion, supported by a 21% rise in current and savings account (CASA) deposits to Dh207 billion. CASA now makes up 45% of total quality remained solid, with the non-performing loan (NPL) ratio improving to 2.02% and provision coverage increasing to 173.1%. ADCB's common equity tier 1 (CET1) ratio stood at 12.21%, and the liquidity coverage ratio at 135.2%, underscoring a strong capital and liquidity position. The bank continues to advance its digital agenda, with over 68,000 new retail customers onboarded in Q2 — 62% of whom were acquired digitally. ADCB also reported improvements in ESG performance, with its Bloomberg ESG score rising to 5.91, the highest among regional peers. Stock Markets Continue full coverage
Zawya
3 days ago
- Business
- Zawya
UAE lender ADCB reports 11% jump in second-quarter profit
Abu Dhabi Commercial Bank reported net income of 2.57 billion dirhams ($699.7 million) for the second quarter on Monday, up 10.7% from the prior-year period, beating analyst expectations. Analysts had expected ADCB's second-quarter profit at 2.33 billion dirhams, according to LSEG data. The bank reported a net profit of 2.32 billion dirhams in the quarter ended June 30 last year. ADCB is the third-largest bank by assets in the United Arab Emirates and majority-owned by the government-run Abu Dhabi Investment Council. "Balance sheet growth remains strong amid healthy consumer and business confidence and ample system liquidity," the bank said in a statement. Key growth areas included energy, trading, financial institutions, transport and communication. The bank said non-interest income, which jumped 44% in the quarter compared to last year, continued to be a key driver for growth. Total assets also grew, rising 17% year-on-year to 719 billion dirhams. Net loans grew 14% and deposits increased 19%. Shares in ADCB are up about 36% year-to-date.
