ADIB Achieves AED 4 Billion Pre-Tax Profit In First Half Of 2025 Driven By Strong Business Growth

Abu Dhabi Islamic Bank (ADIB) reported a 16% rise in pre-tax net profit for the first half of 2025, reaching AED4 billion. This increase is attributed to a robust balance sheet, sustained business momentum, and a growing customer base. The bank also achieved record performance in Q2 2025, with pre-tax net profit climbing 14% year-on-year to AED2 billion.

Net profit after tax for the first half of 2025 reached AED3.5 billion, marking a 15% increase compared to H1 2024. In the second quarter alone, net profit was AED1.8 billion, up by 13% from the same period last year. Total income for H1 2025 rose by 11%, amounting to AED5.9 billion, up from AED5.3 billion in H1 2024.

The bank's strong growth was supported by excellent performance across all core business segments and diversified income streams. Income from funding increased by 9% year-on-year to AED3.6 billion in H1 2025, compared to AED3.3 billion in the previous year. This was due to higher business volumes and the bank’s ability to generate sustainable returns despite lower market profit rates.

Non-funding income saw a significant rise of 15% year-on-year, reaching AED2.3 billion in H1 2025, up from AED2 billion in the prior-year period. A major contributor to this growth was a 28% increase in fee income, driven by higher product sales across both retail and corporate segments.

The cost-to-income ratio improved to 28.2% in H1 2025, down from 28.6% in H1 2024 due to higher revenue and ongoing productivity measures. Operating expenses increased by 9% year-on-year to AED1.7 billion during this period as the bank continued investing in talent, digital initiatives, and emerging technologies.

The net profit margin remained at a healthy level of 4.27%, aligning with the bank’s target range and reflecting effective balance sheet management alongside volume growth. Non-funding income now contributes significantly, accounting for 39% of total operating income.

This underscores ADIB's strategic focus on diversifying its income sources while maintaining strong customer activity through successful cross-selling initiatives.

With inputs from WAM