ADIB sees record Dh4 billion pre-tax profit for H1 2025, spiking 16%

Dubai: Abu Dhabi Islamic Bank (ADIB) reported a record net profit before tax of Dh4.0 billion for the first half of 2025, marking a 16% year-on-year increase. The bank’s strong performance was driven by broad-based revenue growth, solid customer acquisition, and improved asset quality.

Net profit after tax for H1 2025 reached Dh3.5 billion, up 15% from a year earlier. Q2 pre-tax earnings also rose 14% year-on-year to Dh2.0 billion, maintaining ADIB’s positive earnings momentum.

H1 2025 revenue rose 11% to Dh5.9 billion, supported by rising business volumes and fee-based income. Funded income grew 9% to Dh3.6 billion, while non-funded income increased 15% to Dh2.3 billion, now accounting for 39% of operating income.

The bank maintained a healthy Net Profit Margin of 4.27% and reported a cost-to-income ratio improvement to 28.2%, down 40 basis points year-on-year.

Total assets climbed 22% to Dh260 billion, driven by a 23% year-on-year rise in customer financing and a 24% increase in deposits. Customer deposits reached Dh213 billion, with Current and Savings Accounts making up 66% of the funding mix.

ADIB’s capital position remained strong with a CET1 ratio of 12.69% and total capital adequacy ratio at 16.56%. Shareholders’ equity rose 13% to Dh29 billion.

Impairment charges fell 24% to Dh305 million, with the cost of risk improving to 44 basis points. The non-performing asset ratio declined to 3.5%—the lowest since 2016—while provision coverage (excluding collaterals) rose to 85.3%.

ADIB’s digital strategy continues to deliver results, with 145,000 new customers onboarded in H1, 75% via digital channels. Digital sales made up 55% of all new sales, and mobile app users grew 20% year-on-year to over 1.2 million.

The bank also introduced several digital features, including fractional Sukuk investing, cardless ATM withdrawals, and AI-enhanced chat banking.

Under its newly launched Vision 2035, ADIB aims to become the world’s most innovative Islamic bank by focusing on AI-driven operations, customer-centric solutions, and sustainable finance.

ADIB has mobilised Dh17 billion in sustainable finance to date and published its inaugural Green Sukuk impact report. Operational emissions (Scope 1) were reduced by 87% since 2022, and the bank maintained strong ESG ratings from MSCI, LSEG, and DJSI.

Chairman Jawaan Awaidah Al Khaili said the performance underscores ADIB’s strategy execution and the strength of the UAE economy. GCEO Mohamed Abdelbary added, “We continue to deliver consistent growth across all income streams while maintaining strong credit quality and digital innovation.”