Emirates NBD profit climbs on lending surge

Emirates NBD, Dubai’s largest bank by assets, posted a four per cent rise in full-year net profit on Monday, underpinned by record lending growth as borrowing demand strengthened across domestic and international markets.

The lender said net profit reached 24 billion dirhams for the year, surpassing market expectations of about 22.8 billion dirhams based on analyst estimates tracked by LSEG. The performance was driven by what the bank described as accelerating demand for credit, reflecting resilient economic activity in the UAE and improving conditions across key overseas markets where the group operates.

The bank, which is majority owned by Dubai’s government through Investment Corporation of Dubai, proposed an ordinary dividend of 100 fils per share, underscoring management confidence in earnings momentum and balance-sheet strength. The proposed payout follows a year in which Emirates NBD expanded its loan book at the fastest pace in its history, supported by corporate borrowing, trade finance and retail credit growth.

In a statement, the lender highlighted strong uptake in both wholesale and consumer segments, pointing to continued investment activity in sectors such as real estate, infrastructure, logistics and tourism. Rising business confidence, coupled with population growth and sustained inflows of expatriate professionals, has translated into higher demand for mortgages, personal loans and credit cards, executives said.

The profit increase came despite a more challenging global interest-rate environment, with margins facing pressure as funding costs normalised from earlier peaks. Emirates NBD said disciplined cost control and diversified income streams helped offset margin compression, while fee and commission income benefited from higher transaction volumes, wealth management activity and card spending.

Asset quality indicators remained stable over the year, with non-performing loan ratios contained and coverage levels described by the bank as prudent. The lender continued to benefit from a conservative risk approach adopted over recent years, which allowed it to absorb volatility while maintaining capital buffers comfortably above regulatory requirements.

Emirates NBD’s performance mirrors broader trends in the Gulf banking sector, where strong economic growth, fiscal surpluses and large-scale investment programmes have supported credit expansion. In the UAE, government-linked projects, private sector diversification efforts and the country’s role as a regional trade and finance hub have sustained loan demand even as global growth slowed in some advanced economies.

Internationally, the group’s operations in markets such as Egypt, Saudi Arabia, Türkiye and parts of Asia contributed to earnings, though management acknowledged varying conditions across jurisdictions. While some markets experienced currency volatility and inflationary pressures, others benefited from reform programmes and increased foreign investment interest.

Analysts noted that beating consensus expectations reinforced Emirates NBD’s position as one of the region’s most profitable banks by absolute earnings. The scale of its balance sheet, coupled with a broad franchise spanning retail, corporate, investment banking and wealth management, has enabled the group to capture growth opportunities more effectively than smaller peers.

The proposed dividend is likely to be closely watched by investors, given rising expectations for shareholder returns across the sector. With capital adequacy remaining strong, banks in the UAE have faced increasing pressure to balance growth ambitions with consistent payouts, particularly as competition for deposits intensifies.

Looking ahead, Emirates NBD said it expects lending momentum to continue, supported by infrastructure spending, private sector expansion and cross-border trade flows. Digital banking initiatives and investments in technology are also expected to play a larger role in driving efficiency and enhancing customer acquisition, as competition from fintech firms and digital-only banks grows.