Emirates NBD reported a net profit of Dh6.4 billion for the third quarter of 2026, unchanged from the second quarter, as the lender continued to expand its balance sheet through strong lending and the addition of RBL Bank.
Profit before tax for the quarter was Dh8 billion, also flat on the previous three months. Total income rose 6 per cent quarter-on-quarter to Dh14.3 billion, but operating expenses climbed 18 per cent to Dh4.9 billion, lifting the quarterly cost-to-income ratio to 34.2 per cent from 30.7 per cent.
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For the first nine months of the year, net profit rose 2 per cent to Dh19.3 billion. Profit before tax grew 4 per cent to Dh24.3 billion, held back by Dh2.1 billion in impairment allowances and a Dh2.6 billion hyperinflation adjustment.
Group CFO Patrick Sullivan said the Dh8 billion quarterly pre-tax profit demonstrated “consistent performance” across all quarters so far this year.
Record nine-month income
Total income for the nine months rose 15 per cent year-on-year to a record Dh42.2 billion. Net interest income increased 14 per cent to Dh29.4 billion, and non-funded income grew 18 per cent to Dh12.8 billion, although non-funded income slipped 2 per cent in the third quarter compared with the second.
Hesham Abdulla Al Qassim, vice chairman and managing director, said the results reflected “the underlying strength of the Group’s diversified business model and the resilience of the UAE economy”.
Operating expenses for the nine months rose 19 per cent to Dh13.3 billion, and the cost-to-income ratio was 31.4 per cent, up from 30.5 per cent a year earlier. Operating profit before impairment increased 14 per cent to Dh29 billion.
Net interest margin narrowed to 3.24 per cent from 3.43 per cent a year earlier, and return on tangible equity fell to 18.1 per cent from 20.9 per cent.
Lending and deposits
Gross loans climbed 27 per cent since the start of the year to Dh833 billion, or 33 per cent higher than a year earlier. Excluding RBL Bank, loan growth was 18 per cent year-to-date. Retail loans grew 17 per cent and corporate loans 22 per cent, with Dh174 billion of new lending in the period.
Deposits rose 19 per cent year-to-date to Dh935 billion, or 12 per cent excluding RBL Bank. Total assets were up 18 per cent year-to-date and 21 per cent year-on-year.
Impairment allowances came to Dh2.1 billion, primarily driven by provisioning at its Turkish unit DenizBank, partly offset by continued recoveries at Emirates NBD. A year earlier, the bank booked a net Dh0.3 billion write-back. The cost of risk was 37 basis points.
The impaired loan ratio improved to 2.0 per cent from 2.5 per cent a year ago. The common equity tier 1 ratio stood at 13.4 per cent, down from 14.7 per cent a year earlier and 14.4 per cent at the end of 2025. The liquidity coverage ratio improved by 12 percentage points on the previous quarter to 147 per cent.
Assets under management in the UAE grew 15 per cent since February, which the bank attributed to its wealth management strategy. Emirates NBD Capital executed more than 70 debt capital markets deals this year, raising over USD60 billion across 13 countries. The ENBD X app now offers 237 services, up from 150 at its 2023 launch.
The bank said the UAE economy continues to expand, supported by firm domestic demand, population growth and strong credit expansion, despite regional tensions. Activity in tourism, trade and logistics remains moderated, with oil production expected to rise modestly in 2026 before accelerating in 2027.
Source: Khaleej Times