Abu Dhabi Commercial Bank: 2Q26 results - Strong fees & lower provisioning help drive beat

研报英文原文证据摘录

Abu Dhabi Commercial Bank: 2Q26 results - Strong fees & lower provisioning help drive beat

Update

July 23, 2026 01:36 PM GMT

Morgan Stanley & Co. International plc (DIFC Branch)+MAbu Dhabi Commercial Bank | Europe Shabbir Malik

Equity Analyst

2Q26 results - Strong fees & Shabbir.Malik@morganstanley.com +971 4 709-7057

Abu Dhabi Commercial Bank (ADCB.AD, ADCB DH)

Top Pick lower provisioning help drive EEMEA - Banks & Fintech | United Arab Emirates

Stock Rating Overweightbeat Industry View In-Line

Price target AED 17.00

Shr price, close (Jul 22, 2026) AED 14.18

52-Week Range AED 16.54- 11.58

AlphaSignals Earnings Reaction

Mkt cap, curr (mn) AED 106,265

Net debt (12/26e) (mn)* AED 8,755Unchanged Modest upside Modest revision higher

EV, curr (mn)* AED 106,269

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

* = GAAP or approximated based on GAAP

Source: Company data, Morgan Stanley Research

2Q26 earnings beat: ADCB 2Q26 profit was AED3.4bn (EPS: AED0.41), stable QoQ

and up 31% YoY. Earnings were 16% above our estimates and 17% ahead of

consensus estimates on higher Non-II and lower provisioning. The bank's ROTE was

c18.4% for 2Q26 (18.1% in 1Q26). Its 1H26 profit was AED6.7bn (EPS: AED0.81),

+34% Y-o-Y, on higher Non-II and lower provisioning.

Higher funding costs weigh on NIM, strong fees drive Non-II: Its revenue rose 2%

QoQ with NII stable and Non-II up 5%. NIM tightened 12bps sequentially to 2.20%

due to higher cost of funds (negative shift in the deposit mix). Non-II was the key

positive surprise, on solid fee income (+26% QoQ) as loan growth was strong, and

on sustained strong trading income.

Capability enhancement drives OPEX, provisioning positive surprise: OPEX rose