Emirates NBD (ENBD) is the largest bank in Dubai, the second largest in the United Arab Emirates (UAE), and the fourth largest in the Gulf Cooperation Council (GCC) by total assets. The bank serves over 9.4 million active customers across 13 countries and has one of the strongest retail banking franchises in the UAE.

ENBD plays a vital role in the UAE’s financial system and is designated as a domestic systemically important bank (D-SIB). The bank is majority-owned by the Government of Dubai and related entities (55.8%), with the remaining shares held by the public, including institutional and retail investors.

Financial Highlights – Record Income, but Higher Costs Weigh on Profit Growth

In 9M2026, total income rose 15% YoY to a record AED 42.2 billion, driven by higher net interest income (NII) and non-funded income.

NII rose 14% to AED 29.4 billion on strong loan growth. Gross loans grew 27% from Dec-25 to AED 833 billion (18% excluding RBL), supported by robust UAE credit demand from both retail and corporate clients, and management raised its 2026 loan growth guidance (excluding RBL) to the low 20s% from around 15% previously.

This larger loan book more than offset a lower net interest margin (NIM), which fell 19bps to 3.24%. The margin fell because the Fed rate cuts, which were passed through to UAE interest rates due to the AED's peg to the US dollar, reduced asset yields (-41bps), while funding costs gave little relief as customers shifted from current and savings accounts (CASA) into time deposits. Higher-margin DenizBank and RBL partly cushioned the decline, and NIM rose 7bps QoQ to 3.23% in 3Q26 as asset yields recovered.

Non-funded income rose 18% to AED 12.8 billion on higher lending and wealth management fees (net fees +22%) and stronger FX and derivatives client activity, helping to make earnings less sensitive to interest rate cuts.

However, profit growth lagged income growth. Operating expenses rose 19% to AED 13.3 billion, mainly because RBL's higher cost base (cost-to-income ratio of around 50%) is now consolidated and DenizBank's costs continued to rise due to Turkish inflation. Even so, the group's cost-to-income ratio remained relatively low at 31.4%, although management expects the full-year ratio to reach around 33% or slightly above following RBL's consolidation.

Net impairment charges were AED 2.1 billion, compared with a net write-back of AED 0.3 billion in 9M2025, when exceptionally large recoveries on legacy loans boosted results. This year, the bank provisioned more at DenizBank and ENBD to reflect rapid loan growth and the weaker regional outlook, while recoveries were lower. Cost of risk (the annualised proportion of loans set aside for potential credit losses) of 37bps is at the midpoint of the 30–50bps guidance, so we view this as a normalisation of credit costs rather than a deterioration.

The DenizBank hyperinflation charge (a non-cash accounting adjustment reflecting the impact of Turkish inflation on DenizBank's financial statements) also rose 9% to AED 2.6 billion. Together, higher costs, impairments and the hyperinflation charge limited profit before tax (PBT) growth to 4% YoY at AED 24.3 billion.

As of 30 September 2026, the bank's key financial metrics were broadly in line with management's 2026 guidance:

·       Loan growth: raised to the low 20% range (from around 15%); 9M2026 at 18% from Dec-25, on track

·       NIM: 3.1–3.3% (unchanged); 9M2026 at 3.24%, within guidance

·       Cost-to-income ratio: around 33% or slightly above, including RBL; 9M2026 at 31.4%, within guidance

·       Cost of risk: 30–50bps (unchanged); 9M2026 at 37bps, within guidance

·       NPL ratio: lowered to around 2.0% (from around 2.5%); 9M2026 at 2.0%, within guidance

Table 1: Key financial figures (AED million, unless otherwise stated)

Source: Company Reports, iFAST Compilations. Data as of 30 September 2026.

Credit Highlights – Asset Quality Improves, but Capital Headroom Narrows

Table 2: Credit metrics (%)

*NSFR based on Pillar 3 disclosures (average of the last quarter of each period); 9M2026 figure not yet published.

Emirates NBD's reported asset quality continued to improve. The NPL ratio fell to 2.0% (Dec-25: 2.4%; 2022: 6.0%) as the bank continued to recover and write off older impaired loans (AED 2.7 billion of recoveries and AED 3.2 billion of write-offs in 9M2026), while the fast-growing loan book also contributed to the lower ratio by increasing the total loan base.

Management lowered its 2026 NPL ratio guidance to around 2.0% from around 2.5% previously.

NPL coverage eased to 149% (Dec-25: 160%) because impairment allowances stayed flat at AED 24.4 billion while impaired loans rose slightly, but it remains relatively high. One point to monitor: Stage 2 loans (loans showing early signs of increased credit risk but which have not yet defaulted) rose 44% from Dec-25 to AED 43.5 billion, or 5.2% of the loan book (Dec-25: AED 30.2 billion, 4.6%), while their coverage fell to 11.9% from 18.5%.

In terms of capital, the CET1 ratio fell to 13.4% (Dec-25: 14.4%), even though CET1 capital grew 15% to AED 136.8 billion through retained earnings. This is because risk-weighted assets rose faster (23% from December 2025) to AED 1,020 billion, with about AED 78 billion from RBL and the rest from organic loan growth.

Capital ratios remain above CBUAE minimums (CET1 11.17%, total capital 14.67%), but total capital headroom has narrowed to about 75bps (total capital ratio of 15.4%) from about 190bps (16.6%) at Dec-25. With loan growth guidance raised to the low-20% range, there may be a greater need for additional capital, potentially through further AT1 or Tier 2 issuance.

Liquidity and funding remain solid. The LCR recovered to 147% in 9M2026 from 135% in 6M2026, when RBL's consolidation and rapid loan growth weighed on it. Customer deposits rose 19% from Dec-25 to AED 935 billion and accounted for 77% of liabilities, with ENBD's CASA ratio at 53%.

However, loans are growing faster than deposits, so the advances-to-deposits ratio (ADR) has risen to 87% from 79% a year ago.

Looking ahead, considering the bank's strong presence in the UAE and the supportive measures introduced by the CBUAE, the bank should be able to maintain its resilient credit profile and ability to refinance its debt. Furthermore, despite the ongoing regional conflict, Emirates NBD was still able to redeem its USD 750 million 2020 AT1 and replace it with a new USD 750 million AT1, demonstrating its continued access to capital markets.

UAE Central Bank Measures Provide Additional Support

In response to heightened geopolitical uncertainty, the Central Bank of the UAE (CBUAE) introduced a five-pillar Financial Institution Resilience Package in March 2026, aimed at strengthening banking sector stability through improved access to liquidity, temporary regulatory relief and greater flexibility in credit risk management.

The measures remain relevant to Emirates NBD, which confirmed its participation in the programme as at end-September 2026. Notably, the bank reported limited utilisation of payment deferral programmes, suggesting that the need for borrower relief has remained contained.

Table 3: Measures introduced by CBUAE