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The National
24-07-2025
- Business
- The National
Here's why UAE bank customers will no longer receive OTPs via texts and emails
Customers of UAE banks will no longer receive one-time passwords for online financial transactions through SMS and email starting on Friday, according to messages seen by The National. Instead of the passwords, or OTPs, customers will have to authenticate transactions within their mobile banking apps, which experts say is step in the right direction to in efforts to boost security of digital banking and customer protection. 'SMS and email OTPs for online transactions will be phased out from July 25. Switch to ADIB mobile app for in-app authentication,' says an SMS received from Abu Dhabi Islamic Bank, Abu Dhabi's biggest Sharia-compliant lender. Citi Bank customers have also received an email notifying them of the change. 'We are enhancing the way you approve your online card transactions to provide you with greater security. As part of this upgrade, SMS OTP is no longer supported,' the email says. The lender says the change will be rolled out in phases and asks customers to download the bank app and complete their registration. After registration, customers will receive in-app authorisation requests to approve online purchases. However, the Central Bank of the UAE told The National on Thursday that it has not issued an official notice particularly addressing the cancellation of OTP through SMS or email. Mashreq, Dubai Islamic Bank and First Abu Dhabi Bank offered no comment, while Abu Dhabi Commercial Bank, Emirates NBD and Commercial Bank of Dubai did not respond to requests for comment. Experts say the move is aimed at improving security and reducing fraud attempts through SMS or email-based OTPs. These methods are increasingly used by cyber criminals to steal from customers. The rise of fraud involving contactless payments has raised questions about consumer protection and banks' security measures. The UAE's status as a regional business centre, with a high concentration of wealth, makes it a target for cyber criminals, personal finance experts say. Fraudsters are drawn to the Emirates due to its affluent population, high internet use and the perception that consumers may be less cautious when conducting online transactions, says Carol Glynn, founder of Conscious Finance Coaching. Internet penetration – the percentage of a population that uses the internet – in the UAE stands at more than 96 per cent, making it one of the world's highest, Ms Glynn says. Customers travelling outside the UAE have complained of not receiving the SMS containing the OTP or receiving it after the valid time period. A banker who spoke to The National on condition of anonymity said they received a circular from the Central Bank outlining this change in May. 'This is part of comprehensive guidelines for banks and financial institutions with the subject line of prevention of fraud. The regulator said OTPs should not be shared through weak modes of communication, such as SMS and emails, as they are vulnerable and can be compromised,' they said. 'Instead, the Central Bank want to have more secure modes of communication, or two-way authentication in a way. So, they consider in-app as one of the better modes of communication.' The circular was issued with immediate effect, so banks and financial institutions were required to fast-track this transition, the banker said. Better modes of communication and transmission of financial information will reduce the potential for fraud incidents, which is an 'industry-wide concern'. This change will benefit not just banks, but the entire payment ecosystem in the UAE, he added. The move by UAE lenders is a critical step in strengthening digital banking security and reducing exposure tied to telecom system vulnerabilities, Benjamin Ward, regional financial institutions leader for the Middle East and North Africa at professional services firm Marsh, said. "This shift also places full responsibility for authentication integrity squarely on the banks themselves," he said. "However, threat actors won't stop - they'll shift tactics." Phishing activity and attempts at social engineering by scammers of tricking users into approving app-based transactions will continue. "Instead of SIM swaps or message interception, attackers will increasingly target internet banking, mobile apps, and core authentication systems directly," he added.
Bloomberg
24-07-2025
- Business
- Bloomberg
ADIB GCEO: Mid East Economy Resilience Not Surprising
Abu Dhabi Islamic Bank, ADIB, reported net income for the second quarter of AED 1.78 billion up 13% Y/Y. The lender also had a strong first half, with net income climbing 15% in comparison to 2024. Mohamed Abdelbary, Group CEO of ADIB spoke to Horizons Middle East and Africa anchor Joumanna Bercetche on the numbers & the reaction to the geopolitical volatility in markets. (Source: Bloomberg)
Al Etihad
23-07-2025
- Business
- Al Etihad
ADIB reports Dh4 billion pre-tax profit in H1 2025
23 July 2025 17:42 ABU DHABI (WAM)Abu Dhabi Islamic Bank (ADIB) today announced a 16 percent year-on-year increase in pre-tax net profit for the first half of 2025, reaching Dh4 billion, reflecting strong balance sheet growth, continued business momentum, and a rising customer bank delivered another record performance in Q2 2025, with pre-tax net profit up 14 percent year-on-year to Dh2 profit after tax for the first half reached Dh3.5 billion, up 15 percent versus H1 2024. For the second quarter, net profit reached Dh1.8 billion, an increase of 13 percent compared to the same period last income for H1 2025 rose 11 percent to Dh5.9 billion, up from Dh5.3 billion in H1 robust growth was driven by strong performance across all core business segments, supported by diversified income streams and continued expansion of fee-based from funding grew 9 percent year-on-year to Dh3.6 billion in H1 2025, compared to Dh3.3 billion in the previous year, backed by increased business volumes and the bank's ability to generate sustainable returns despite lower market profit profit margin stood at 4.27 percent, within the bank's target range, reflecting volume growth and effective balance sheet income rose 15 percent year-on-year to Dh2.3 billion in H1 2025, up from Dh2 billion in the prior-year growth in non-funding income was largely driven by a 28 percent increase in fee income, attributed to higher product sales across both retail and corporate segments, reflecting stronger customer activity and successful cross-selling income now contributes 39 percent of total operating income, underscoring the bank's continued strategic focus on income cost-to-income ratio improved to 28.2 percent in H1 2025, down 40 basis points from 28.6 percent in H1 2024, driven by higher revenue and ongoing productivity measures. Operating expenses rose 9 percent year-on-year to Dh1.7 billion in H1 2025, reflecting continued investment in talent, digital initiatives and emerging technologies.
Al Etihad
23-07-2025
- Business
- Al Etihad
Abu Dhabi Islamic Bank reports Dh4 billion pre-tax profit in H1 2025
23 July 2025 17:46 ABU DHABI (WAM)Abu Dhabi Islamic Bank (ADIB) Wednesday announced a 16 percent year-on-year increase in pre-tax net profit for the first half of 2025, reaching Dh4 billion, reflecting strong balance sheet growth, continued business momentum, and a rising customer bank delivered another record performance in Q2 2025, with pre-tax net profit up 14 percent year-on-year to Dh2 profit after tax for the first half reached Dh3.5 billion, up 15 percent versus H1 2024. For the second quarter, net profit reached Dh1.8 billion, an increase of 13 percent compared to the same period last income for H1 2025 rose 11 percent to Dh5.9 billion, up from Dh5.3 billion in H1 robust growth was driven by strong performance across all core business segments, supported by diversified income streams and continued expansion of fee-based from funding grew 9 percent year-on-year to Dh3.6 billion in H1 2025, compared to Dh3.3 billion in the previous year, backed by increased business volumes and the bank's ability to generate sustainable returns despite lower market profit profit margin stood at 4.27 percent, within the bank's target range, reflecting volume growth and effective balance sheet income rose 15 percent year-on-year to Dh2.3 billion in H1 2025, up from Dh2 billion in the prior-year growth in non-funding income was largely driven by a 28 percent increase in fee income, attributed to higher product sales across both retail and corporate segments, reflecting stronger customer activity and successful cross-selling income now contributes 39 percent of total operating income, underscoring the bank's continued strategic focus on income cost-to-income ratio improved to 28.2 percent in H1 2025, down 40 basis points from 28.6 percent in H1 2024, driven by higher revenue and ongoing productivity measures. Operating expenses rose 9 percent year-on-year to Dh1.7 billion in H1 2025, reflecting continued investment in talent, digital initiatives and emerging technologies.
Zawya
23-07-2025
- Business
- Zawya
ADIB reports $1.09bln pre-tax profit in H1 2025
Abu Dhabi Islamic Bank (ADIB) today announced a 16 percent year-on-year increase in pre-tax net profit for the first half of 2025, reaching AED4 billion, reflecting strong balance sheet growth, continued business momentum, and a rising customer base. The bank delivered another record performance in Q2 2025, with pre-tax net profit up 14 percent year-on-year to AED2 billion. Net profit after tax for the first half reached AED3.5 billion, up 15 percent versus H1 2024. For the second quarter, net profit reached AED1.8 billion, an increase of 13 percent compared to the same period last year. Total income for H1 2025 rose 11 percent to AED5.9 billion, up from AED5.3 billion in H1 2024. This robust growth was driven by strong performance across all core business segments, supported by diversified income streams and continued expansion of fee-based activities. Income from funding grew 9 percent year-on-year to AED3.6 billion in H1 2025, compared to AED3.3 billion in the previous year, backed by increased business volumes and the bank's ability to generate sustainable returns despite lower market profit rates. Net profit margin stood at 4.27 percent, within the bank's target range, reflecting volume growth and effective balance sheet management. Non-funding income rose 15 percent year-on-year to AED2.3 billion in H1 2025, up from AED2 billion in the prior-year period. The growth in non-funding income was largely driven by a 28 percent increase in fee income, attributed to higher product sales across both retail and corporate segments, reflecting stronger customer activity and successful cross-selling initiatives. Non-funding income now contributes 39 percent of total operating income, underscoring the bank's continued strategic focus on income diversification. The cost-to-income ratio improved to 28.2 percent in H1 2025, down 40 basis points from 28.6 percent in H1 2024, driven by higher revenue and ongoing productivity measures. Operating expenses rose 9 percent year-on-year to AED1.7 billion in H1 2025, reflecting continued investment in talent, digital initiatives and emerging technologies.
