Dubai’s largest bank held profit steady and pushed its balance sheet past Dh1.38 trillion, helped by the RBL Bank acquisition.

Dubai: Emirates NBD reported a net profit of Dh6.4 billion for the third quarter of 2026, unchanged from the previous quarter, as strong lending and the addition of India’s RBL Bank kept its balance sheet growing.

Quarterly performance

Profit before tax for the quarter was Dh8 billion, also flat on the second quarter. Total income grew 6 per cent quarter-on-quarter to Dh14.3 billion, but operating expenses jumped 18 per cent to Dh4.9 billion. As a result, the quarterly cost-to-income ratio rose to 34.2 per cent from 30.7 per cent.

Nine-month results

For the first nine months of 2026, net profit edged up 2 per cent to Dh19.3 billion, while pre-tax profit grew 4 per cent to Dh24.3 billion. Growth was held back by Dh2.1 billion in impairment allowances and a Dh2.6 billion hyperinflation adjustment.

Total income reached a record Dh42.2 billion. Net interest income increased 14 per cent to Dh29.4 billion, and non-funded income rose 18 per cent to Dh12.8 billion, although the latter slipped 2 per cent in Q3 from the previous quarter. Operating profit before impairments rose 14 per cent to Dh29 billion.

Group CFO Patrick Sullivan said the Dh8 billion quarterly pre-tax profit showed “consistent performance” across the year. Vice chairman and managing director Hesham Abdulla Al Qassim credited the bank’s diversified business model and the resilience of the UAE economy.

Margins and returns under pressure

Operating expenses for the nine months rose 19 per cent to Dh13.3 billion, lifting the cost-to-income ratio to 31.4 per cent from 30.5 per cent a year earlier. Net interest margin narrowed to 3.24 per cent from 3.43 per cent, and return on tangible equity fell to 18.1 per cent from 20.9 per cent.

Loans and deposits surge

Gross loans climbed 27 per cent since January to Dh833 billion, and are 33 per cent higher than a year ago. Without 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.

Deposits rose 19 per cent to Dh935 billion, or 12 per cent excluding RBL Bank. Total assets are up 18 per cent year-to-date and 21 per cent year-on-year.

Asset quality and capital

Impairment allowances of Dh2.1 billion were driven mainly by provisioning at Turkish unit DenizBank, partly offset by 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 was 13.4 per cent, down from 14.7 per cent a year earlier and 14.4 per cent at end-2025. The liquidity coverage ratio rose 12 percentage points on the previous quarter to 147 per cent.

Wealth, capital markets and digital

Assets under management in the UAE grew 15 per cent since February, which the bank linked to its wealth management strategy. Emirates NBD Capital completed 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.

Economic outlook

The bank said the UAE economy continues to expand, supported by firm domestic demand, population growth and strong credit growth, despite regional tensions. Tourism, trade and logistics activity remains moderated, with oil production expected to rise modestly in 2026 before accelerating in 2027.