ADCB balances rapid loan growth with lower NPL ratio

Credit expansion should not be measured solely by the growth in a bank’s loan portfolio, but rather by its ability to maintain asset quality and enhance profitability, ensuring that the increase in financing becomes a source of sustainable growth rather than creating additional pressure on portfolio quality or financial indicators.

Abu Dhabi Commercial Bank Egypt (ADCB Egypt) has clearly demonstrated this balance since entering the Egyptian market in 2020. Its customer loan portfolio has grown by about 376 per cent  to reach EGP 82.69 billion as of June 2026, compared to EGP 17.39 billion at the end of 2020, representing an increase of EGP 65.31 billion.

Corporate financing has been the main driver of this growth, surging by about 507 per cent over the past six years to EGP 68.34 billion as of June 2026, compared to EGP 11.26 billion at the end of 2020. This represents an increase of EGP 57.09 billion, accounting for around 87 per cent of the bank’s total increase in its loan portfolio.

At the same time, the retail loan portfolio has continued to grow, albeit at a relatively slower pace, rising by about 134 per cent to EGP 14.35 billion as of June 2026, compared to EGP 6.13 billion at the end of 2020, an increase of EGP 8.22 billion.

The positive performance has not been limited to credit expansion, but has also been accompanied by a clear improvement in portfolio quality. The non-performing loan (NPL) ratio fell to 4.20 per cent as of June 2026, compared to 5.65 per cent at the end of 2020, reflecting the bank’s ability to achieve credit growth without compromising its risk management standards.

This improvement was driven primarily by the decline in the NPL ratio of the corporate loan portfolio, which fell to 4.61 per cent as of June 2026, compared to 7.7 per cent at the end of 2020.

The impact of this credit expansion has extended beyond portfolio growth and improved asset quality, also significantly boosting the bank’s profitability.

The bank has recorded a remarkable surge in net profit over the past five years, growing by 1,067 per cent to EGP 5.73 billion in 2025, compared to EGP 491 million in 2020.

This performance has also been reflected in the bank’s profitability indicators. Return on average assets (ROAA) rose to 3.72 per cent in 2025, compared to 1.54 per cent in 2020, while return on average equity (ROAE) increased to 35.35 per cent, compared to 17.46 per cent. This reflects the bank’s ability to generate higher returns on its assets and shareholders’ funds alongside the expansion of its lending activity.

Results for the first half of 2026 indicate that this positive trajectory is continuing, with ROAA reaching approximately 2.32 per cent, while ROAE stood at 21.69 per cent.

ADCB’s performance since entering the Egyptian market demonstrates that its credit growth has not only expanded the scale of its business and improved asset quality, but has also contributed to enhancing its operational efficiency and strengthening its ability to generate profitability.