Islamic bank ADCB sharply increased its non-performing loans in July – by 144 times, to 713 million tenge. This was reported by Qazaqyia.kz citing Kursiv Media.
In its banking sector review, Halyk Finance experts noted that the Islamic bank ADCB increased its loans overdue by more than 90 days (NPL 90+, also called non-performing loans) by 143 times in just one month. While a month earlier the bank's non-performing loans totaled only 4.9 million tenge, in July they rose to 713.5 million tenge.
Since the beginning of the year, overdue loans have also increased by 376%. However, despite such a significant increase in non-performing loans, their share in the bank's portfolio remains very small – only 0.44%, which is the lowest among the country's banks.
ADCB is owned by one of the largest UAE banks, Abu Dhabi Commercial Bank, and operates as an Islamic bank, offering only certain financial products. In March 2026, it became known that Abu Dhabi Commercial Bank plans to obtain a universal license to operate as a regular bank with the possibility of opening an "Islamic window."
Madina Abylkasymova, head of the Agency for Regulation and Development of the Financial Market (ARDFM), said that Abu Dhabi Commercial Bank will receive a universal banking license by the end of 2026.
Reasons for the growth of non-performing loans
According to experts, the sharp increase in non-performing loans may be due to a deterioration in the quality of the bank's loan portfolio. However, since the share of non-performing loans in the bank's portfolio remains low, this does not significantly affect the bank's overall financial stability.
Bank's plans to transition to a universal license
Abu Dhabi Commercial Bank plans to expand its operations in Kazakhstan. After obtaining a universal license, the bank will be able to offer traditional banking services, as well as continue Islamic financing through an "Islamic window." This will allow the bank to attract a wider range of clients and strengthen its position in the Kazakh market.
Development of Islamic banking in Kazakhstan
Islamic banking has been actively developing in Kazakhstan in recent years. Several Islamic financial institutions operate in the country, and the government is making legislative changes to support this sector. The transition of banks such as ADCB to a universal license may facilitate the integration of Islamic finance with traditional banking services.
Conclusion
Despite the growth of non-performing loans at ADCB, their share remains low, indicating the bank's stability. Obtaining a universal license will allow the bank to expand its operations in the Kazakh market and offer clients additional financial products. These changes are likely to have a positive impact on the development of Kazakhstan's banking sector.