Emirates NBD reported a record first-half pre-tax profit of Dh16.2 billion, up 5 per cent year-on-year, as strong lending growth, higher net interest income and increased fee-based business offset higher impairment charges.
The Dubai bank said on Wednesday that profit before tax was supported by a 13 per cent increase in net interest income and 25 per cent growth in non-funded income, reflecting robust customer activity, resilient margins and continued expansion across its diversified business lines.
Total income rose 16 per cent year-on-year to Dh27.9 billion, while operating profit before impairment increased 17 per cent to Dh19.5 billion, driven by strong income growth and disciplined cost management. Profit after tax climbed 3 per cent to Dh12.9 billion.
Record Dh1.3 trillion balance sheet
The group’s balance sheet expanded beyond Dh1.3 trillion for the first time, supported by healthy business growth in the UAE and the consolidation of India’s RBL Bank. Gross loans increased 17 per cent to Dh771 billion, while customer deposits grew 13 per cent to Dh892 billion.
The bank said its acquisition of a majority stake in RBL Bank, completed during the first half of the year, added Dh74 billion in total assets, Dh44 billion in gross loans and Dh43 billion in customer deposits. The transaction marks Emirates NBD’s largest international acquisition to date and strengthens its presence in one of the world’s fastest-growing banking markets.
The acquisition gives Emirates NBD a controlling stake in India’s RBL Bank after receiving all required regulatory approvals. The lender has said the deal forms part of its long-term strategy to diversify earnings and deepen its footprint in high-growth markets beyond the GCC.
Despite the stronger earnings, Emirates NBD booked Dh1.4 billion in impairment allowances during the first half, mainly reflecting prudent provisioning across Emirates NBD and DenizBank, partly offset by strong recoveries. Its impaired loan ratio nevertheless improved to 2.1 per cent, highlighting continued asset quality resilience.
The bank maintained strong capital and liquidity positions, with a Common Equity Tier 1 ratio of 13.6 per cent, while its cost-to-income ratio stood at 29.9 per cent.
Operationally, Emirates NBD continued to expand its digital and sustainable finance offerings during the period. It completed a $1 billion green-blue bond issuance, followed by a €500 million green bond and a $1.75 billion sustainability-linked loan, while assets under management across the group reached $105 billion.
The lender also said it extended Dh98 billion in new lending during the first half, supporting 6 per cent retail loan growth and 14 per cent corporate loan growth, as customer demand remained robust across key markets.
