Abu Dhabi Commercial Bank: net profit accelerated to +31.5% in Q2 2026, driven by net interest income growth

On August 25, Abu Dhabi Commercial Bank reported Q2 2026 results. Net profit rose 31.5% YoY to AED 3,376 million, while net interest income grew 21.3% to AED 5,511 million. At the current price, the shares look attractive: P/E LTM 9.3, ROE 15.4%, and the portal's model implies +11% upside.

Key takeaways

— Net interest income in Q2 2026 grew 21.3% YoY to AED 5,511 million, supporting profit acceleration

— Quarterly net profit reached AED 3,376 million, up 31.5% YoY, reflecting operational efficiency

— Net interest income growth is accelerating: from +10.1% in Q2 2025 to +21.3% in Q2 2026

— Over the last twelve months, net profit totaled AED 13,168.4 million and net interest income AED 21,000 million, confirming a sustainable trend

— P/E LTM of 9.3 and ROE of 15.4% suggest undervaluation relative to the portal's model, which implies +11% upside

— The bank does not disclose dividends in the report, but at the current yield and ROE, the shares look attractive for long-term investors

Attractiveness

Key figures, AED bn

Net interest income in Q2 2026 grew 21.3% YoY to AED 5,511 million, supporting profit acceleration

In Q2 2026, Abu Dhabi Commercial Bank's net interest income reached AED 5,511 million, up 21.3% year-on-year. This continues a steady growth trend: in the previous quarter (Q1 2026), the figure also rose 21.3% YoY to AED 5,296 million.

The acceleration in interest income reflects a favorable rate environment and loan portfolio growth. Over the last twelve months, net interest income reached AED 21,000 million, confirming the bank's ability to expand its core revenue source.

Quarterly net profit reached AED 3,376 million, up 31.5% YoY, reflecting operational efficiency

Net profit in Q2 2026 reached AED 3,376 million, up 31.5% from the same period last year. Profit growth outpaced interest income dynamics, indicating cost control and efficient reserve management.

Over the last twelve months, net profit reached AED 13,168.4 million, with return on equity (ROE) at 15.4%. This is a strong figure for the banking sector, confirming the quality of the business model.

Net interest income growth is accelerating: from +10.1% in Q2 2025 to +21.3% in Q2 2026

Net interest income growth has been consistently accelerating: +10.1% in Q2 2025, +14.3% in Q3, +21.1% in Q4, and +21.3% in both Q1 and Q2 2026. This indicates strengthening interest margin.

The acceleration is supported by loan growth and improved funding costs. The bank is capitalizing on the current rate environment, positively impacting financial results.

Over the last twelve months, net profit totaled AED 13,168.4 million and net interest income AED 21,000 million, confirming a sustainable trend

Based on the last four quarters (Q3 2025 – Q2 2026), the bank's net profit reached AED 13,168.4 million, and net interest income AED 21,000 million. These levels reflect a sustained upward trend in key metrics.

The LTM dynamics confirm that the bank not only reported a strong quarter but also maintained progressive development throughout the year. This provides a solid foundation for assessing the fair value of the shares.

P/E LTM of 9.3 and ROE of 15.4% suggest undervaluation relative to the portal's model, which implies +11% upside

The current P/E LTM multiple is 9.3, which, with ROE of 15.4%, looks moderate for a bank with sustained profit growth. According to the portal's model, the share's upside potential is +11% to fair value.

The bank's market capitalization is AED 121,901.6 million. Given the current profit and interest income dynamics, the shares have potential for further growth, making them attractive for value-oriented investors.

The bank does not disclose dividends in the report, but at the current yield and ROE, the shares look attractive for long-term investors

In its Q2 2026 report, Abu Dhabi Commercial Bank did not disclose dividend payments. Nevertheless, with ROE of 15.4% and P/E of 9.3, the shares offer capital appreciation potential, which may appeal to investors not requiring immediate dividend income.

The absence of a dividend policy in the report does not diminish attractiveness: the bank reinvests profits to expand its business, supporting high growth rates of interest income. For long-term holders, this may be more valuable than current payouts.

Valuation on the latest reported figures

Bottom line

Abu Dhabi Commercial Bank delivered strong Q2 2026 results: net profit grew 31.5% YoY and net interest income 21.3%, confirming the resilience of its business model. LTM profit growth to AED 13,168.4 million and ROE of 15.4% provide a solid foundation for valuation. With P/E of 9.3 and +11% upside per the portal's model, the shares look attractive. The key question for holders is whether interest income acceleration will persist amid potential rate changes.