ADIB Delivers Strong H1 2025 Results with 16% Rise in Pre-Tax Profit
by Abu Dhabi Islamic Bank (ADIB) has reported a solid financial performance for the first half of 2025, with pre-tax net profit rising 16% year-on-year to AED 4 billion, reflecting the bank’s continued business momentum, balance sheet strength, and growing customer base.
The second quarter also marked a record-breaking performance, as Q2 pre-tax profit increased 14% year-on-year to AED 2 billion.
Net profit after tax for H1 2025 stood at AED 3.5 billion, up 15% from the same period last year, while Q2 net profit reached AED 1.8 billion, growing 13% year-on-year.
Steady Income Growth and Diversification Strategy Pay Off
ADIB’s total income climbed to AED 5.9 billion in H1 2025, up 11% from AED 5.3 billion in H1 2024, powered by strong contributions from both funding and non-funding sources.
- Income from funding rose 9% YoY to AED 3.6 billion, supported by higher business volumes and sustainable returns, despite lower market profit rates.
- Non-funding income surged 15% to AED 2.3 billion, largely due to a 28% rise in fee income stemming from increased product sales in retail and corporate banking. Non-funding income now makes up 39% of total operating income, underlining ADIB’s ongoing commitment to diversifying revenue streams.
The net profit margin held steady at 4.27%, in line with the bank’s strategic target, reflecting effective balance sheet management and volume-driven growth.
Efficiency Gains and Investment in Digital Transformation
ADIB continued to improve operational efficiency, with its cost-to-income ratio falling to 28.2%, down 40 basis points from the previous year. This was achieved through increased revenue and ongoing productivity initiatives.
At the same time, operating expenses grew 9% YoY to AED 1.7 billion, driven by strategic investments in digital infrastructure, emerging technologies, and talent acquisition.
Outlook
The H1 2025 results highlight ADIB’s resilience and agility in a dynamic market environment. With a strong focus on innovation, customer-centric growth, and income diversification, the bank is well-positioned to build on its momentum and deliver sustainable long-term value for stakeholders.
