Abu Dhabi Commercial Bank in share surge after H1-2025 profit goes past Dh5b

Dubai: The ADCB stock shot up near 7% as investors took in the full measure of the Abu Dhabi bank’s H1-2025 net profit after tax edging past Dh5 billion. For the second quarter alone, the profit tally was an impressive Dh2.56 billion.

ADCB gained by signing up more clients for its roster of value-added services, adding over ‘125 new clients in the large corporate and GRE (government related enterprise) segments in the second quarter’. The H1-25 numbers come in above analyst expectations - and could be the trend for a slew of UAE banking results in the coming days.  

On ADX, the stock is at Dh15.28 after the 7.76% spike.

“ADCB achieved an exceptional underlying operational and financial performance, generating a 22% year-on-year increase in operating profit,” the bank said in a statement. It was recently that the bank launched a 5-year growth strategy.

“The bank has delivered double-digit revenue growth powered by diverse sources of non-interest income, continued robust expansion across major economic sectors, and attracted substantial inflows of CASA (current account savings account) deposits.” (Deposits rose by Dh42 billion in the first-half to Dh 463 billion.)

Under UAE corporate tax rules, entities with substantial overseas operations are pegged at 15% under 'Domestic minimum top-up tax' rules aligned to the OECD's Pillar Two Model rules.

"The Group (ADCB) has applied this rate for H1-25 and is assessing its eligibility for the 'initial phase of internal activity exclusion, which would reduce the statutory tax rate to 9%," said a statement from the bank.

"The Group anticipates completing its evaluation of the IAE by quarter ending 30 September 2025. Any resulting adjustments will be reflected in income tax expense in the period in which the assessment is finalised."

ADCB's NPL (non performing loan) ratio 'continued to improve' to 2.02% at June-end, from 2.24% end March and 3.04% as at December last.

"ADCB’s accelerated loan growth of 10% CAGR over the last five years has been characterised by high credit quality," said a statement. "The Bank maintains a disciplined approach to risk management and proactively aligns with the UAE Central Bank’s new credit risk management standards."

Impairment charge of Dh1.18 billion in Q2-25 'stemmed largely from legacy corporate accounts'.