Emirates NBD profit rises as strong income growth offsets geopolitical uncertainty

Dubai: Emirates NBD reported higher first-quarter earnings, supported by strong lending growth and record non-funded income, as it navigated a period of geopolitical uncertainty.

Total income rose 21% year-on-year to Dh14.4 billion, while profit before tax increased 6% to Dh8.2 billion. Net profit reached Dh6.4 billion, reflecting continued momentum across core business segments.

The bank’s balance sheet expanded beyond Dh1.2 trillion, driven by lending growth of Dh45 billion during the quarter. Total loans rose 7% to Dh703 billion, while deposits increased 6% to Dh830 billion.

Capital and liquidity remained strong, with a common equity tier-1 ratio of 14.2% and liquidity coverage ratio at 141%. Asset quality improved, with the non-performing loan ratio at 2.3%.

Geopolitical tensions

Management highlighted the impact of regional instability on the operating environment.

“Emirates NBD entered this period of heightened geopolitical uncertainty from a position of strength, with rock-solid capital, robust liquidity and a well-diversified business model that continues to drive growth and strong financial performance,” said Patrick Sullivan, Group Chief Financial Officer.

The bank also pointed to broader economic resilience.

“The UAE has once again demonstrated exceptional resilience and strategic foresight, with swift actions by the leadership and the Central Bank of the UAE supporting robust liquidity and safeguarding financial stability,” said Hesham Abdulla Al Qassim, Vice Chairman and Managing Director.

He added that the lender had been “proactively working to support customers through targeted relief measures, including fee waivers or deferrals, helping businesses navigate through the current environment.”

Income growth

Strong revenue performance was supported by both funded and non-funded income streams.

Net interest income rose 12% to Dh9.5 billion, while non-funded income surged 42% to Dh4.9 billion, reflecting gains in fees, trading, and product activity. This helped offset the impact of lower interest rates during the period.

Operating profit before impairment increased 24% to Dh10.2 billion, supported by disciplined cost management, with the cost-to-income ratio improving to 29.2%.

Chief Executive Shayne Nelson said the bank’s performance was “propelled by strong loan growth and a record non-funded income growth,” with investments in digital capabilities and GenAI supporting expansion.

Regional growth

The bank continued to expand across its regional footprint, supported by strong deposit inflows and customer growth.

It also completed $2.25 billion in syndicated financing during the quarter, reflecting investor confidence in its credit profile. Emirates Islamic contributed Dh1 billion in profit before tax, maintaining its growth trajectory.

Management said the UAE economy remains supported by fiscal strength and domestic demand, allowing it to “withstand the negative impacts and rebound quickly” despite geopolitical pressures.

The results highlight how UAE lenders are sustaining growth through strong domestic fundamentals, even as external risks continue to shape the operating environment.