Emirates NBD reported record income of Dh42.2 billion for the first nine months of 2026, up 15% from a year earlier. The Dubai-based bank said strong lending activity, higher deposits and growth across its core markets supported the performance. Net profit rose 2% to Dh19.3 billion.
Profit before tax grew 4% year-on-year to Dh24.3 billion, while operating profit before impairment increased 14% to Dh29 billion. Pre-tax growth was held back by Dh2.1 billion in impairment allowances and a Dh2.6 billion hyperinflation adjustment.
BALANCE SHEET EXPANDS ON LENDING AND DEPOSITS
Total assets reached Dh1.38 trillion at the end of September, up 18% since the start of the year and 21% from a year earlier. Gross loans climbed 27% year-to-date to Dh833 billion, supported by growth across most sectors and markets and the addition of RBL Bank following its acquisition in June. Excluding RBL Bank, the loan portfolio expanded 18%.
Customer deposits increased 19% to Dh935 billion, or 12% excluding RBL Bank. The bank generated Dh174 billion in new lending during the nine months, with retail loans growing 17% and corporate lending increasing 22%.
INCOME MIX, COSTS AND ASSET QUALITY
Net interest income increased 14% to Dh29.4 billion, against AED 29,442 million versus AED 25,794 million a year earlier. Non-funded income grew 18% to Dh12.8 billion, although it slipped 2% in the third quarter compared with the second. Operating expenses rose 19% to Dh13.3 billion, and the cost-to-income ratio was 31.4%, up from 30.5% a year earlier.
Asset quality improved, with the impaired loan ratio declining to 2%. The cost of risk stood at 37 basis points, while impairment allowances totalled Dh2.1 billion, primarily reflecting provisions at DenizBank, partly offset by recoveries at Emirates NBD.
Net interest margin narrowed to 3.24% from 3.43% a year earlier, and return on tangible equity fell to 18.1% from 20.9%. The common equity tier 1 ratio stood at 13.4%, down from 14.7% a year earlier and 14.4% at the end of 2025.
THIRD-QUARTER PROFIT FLAT AS COSTS CLIMB
Emirates NBD reported a third-quarter net profit of Dh6.4 billion, 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% quarter-on-quarter to Dh14.3 billion, but operating expenses climbed 18% to Dh4.9 billion. That lifted the quarterly cost-to-income ratio to 34.2% from 30.7%. The liquidity coverage ratio improved by 12 percentage points on the previous quarter to 147%.
INTERNATIONAL EXPANSION AND BUSINESS LINES
Emirates NBD is expanding internationally through the acquisition of RBL Bank in India and an agreement to acquire HSBC Egypt's retail banking business. Its wholly owned Egyptian subsidiary has entered into definitive agreements for the Egyptian deal, which is expected to complete in the second half of 2027, subject to regulatory approvals.
Emirates NBD Capital executed more than 70 debt capital markets transactions during the year to date, raising over $60 billion across 13 countries. In retail banking, the lender reported a 35% share of credit card spending in the UAE. It also introduced a real-time blockchain-based cross-border US dollar payment service through the Partior network and launched an AI-powered travel assistant with Visa and Tripadvisor.
The bank also said it had achieved its $30 billion sustainable finance and facilitation target for 2030 nearly four years ahead of schedule.
Related: UAE's Emirates NBD Egypt to acquire retail banking business of HSBC Bank Egypt