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ADIB H1 profit rises 8% as assets cross Dh300b milestone
Abu Dhabi Islamic Bank posted Dh3.8 billion net profit in H1 2026, driven by strong financing growth, rising revenues and improved asset quality as assets topped Dh300 billion
- PUBLISHED: Wed 29 Jul 2026, 4:27 PM
Abu Dhabi Islamic Bank (ADIB) reported strong first-half earnings as robust financing growth, higher revenues and improved asset quality helped the lender deliver industry-leading profitability while expanding its balance sheet beyond the Dh300 billion mark for the first time.
The bank posted net profit after tax of Dh3.8 billion for the six months ended June 30, 2026, up 8 per cent from a year earlier. Net profit before tax rose 9 per cent year-on-year to Dh4.3 billion, while second-quarter profit before tax increased 6 per cent from the previous quarter to Dh2.2 billion.
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ADIB said the performance was supported by strong customer financing growth, solid asset quality and diversified revenue streams. The lender added 125,000 new customers during the first half, supporting balance sheet expansion and strengthening its market position.
Revenue for the six-month period increased 9 per cent year-on-year to Dh6.5 billion. Funded income rose 14 per cent to Dh4.1 billion, reflecting growth across retail and wholesale banking segments, while non-funded income climbed 3 per cent to Dh2.4 billion. Non-funded income accounted for 37 per cent of total revenues, underlining the bank’s efforts to diversify earnings sources through cards, foreign exchange, trade finance and investment-related activities.
The bank maintained a net profit margin of 3.78 per cent and delivered a return on equity of 28 per cent, among the highest in the sector. Operating expenses increased 12 per cent to Dh1.9 billion as ADIB continued investing in talent, technology and digital capabilities, although it kept its cost-to-income ratio at 29 per cent during the period.
Asset quality also continued to improve. The non-performing asset ratio fell to a record low of 2.2 per cent, while coverage excluding collateral increased to 108.1 per cent from 85.3 per cent a year earlier. Impairment charges remained broadly stable at Dh301 million, equivalent to a cost of risk of 33 basis points.
ADIB’s balance sheet expanded significantly during the period. Total assets rose 17 per cent year-on-year to Dh304 billion, while gross customer financing increased 26 per cent to reach an additional Dh43 billion compared with the same period last year. Customer deposits grew 15 per cent to Dh246 billion, supported by a strong current and savings account base that represented 64 per cent of total deposits.
“Surpassing Dh300 billion in assets for the first time marks a significant milestone in ADIB’s growth journey and reflects the strength of our franchise, the trust of our customers, the resilience of the UAE economy and our ability to deliver industry-leading profitability,” said Jawaan Awaidah Al Khaili, chairman of ADIB.
Mohamed Abdelbary said the results reflected the sustainability of the bank’s earnings, supported by strong funding and liquidity, disciplined risk management and continued market share gains across retail and wholesale banking.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.