Emirates NBD

1. Company Overview & Earnings Context

Emirates NBD reported its Q1 2026 results, delivering a strong performance with record income growth and continued balance sheet expansion, supported by diversified revenue streams and resilient operating conditions.

2. Financial Performance Snapshot

• Total income: AED 14.4B (+21% YoY)

• Operating profit (pre-impairment): AED 10.2B (+24% YoY)

• Profit before tax: AED 8.2B (+6% YoY)

• Net profit: AED 6.4B (+3% YoY)

• Return on tangible equity (ROTE): 19.4%

• Cost-to-income ratio: 29.2%

• Net interest margin (NIM): 3.35% (slight compression YoY)

• Non-funded income: AED 4.9B (+42% YoY)

3. Operational Highlights & Key Metrics

• Total assets: AED 1.2T (+18% YoY)

• Gross loans: AED 703B (+28% YoY / +7% QoQ)

• Customer deposits: AED 830B (+19% YoY / +6% QoQ)

• NPL ratio: 2.3% (improved YoY)

• CET1 ratio: 14.2%

• Capital adequacy ratio: 16.4%

• Liquidity coverage ratio (LCR): 141%

4. Key Performance Drivers

Emirates NBD’s Q1 performance was driven by strong balance sheet growth and record non-funded income, as reflected in the financial review (page 4).

Key drivers included:

• Robust loan growth (+28% YoY) across sectors supporting income expansion

• Strong deposit growth, reinforcing funding base and liquidity

• Significant increase in non-funded income (+42% YoY), improving revenue diversification

• Disciplined cost management, maintaining cost-to-income at ~29% despite higher investments

• Margin pressure from lower interest rates, partially offset by volume growth and fee income

• Higher impairment charges (~AED 0.8B) reflecting prudent provisioning approach

Overall, growth was supported by both volume expansion and diversification, offsetting margin compression and higher provisions.

5. Outlook & Forward Guidance

Emirates NBD remains positioned for continued growth supported by strong capital, liquidity, and regional expansion strategy.

Key forward considerations include:

• Sustained lending and deposit growth across key markets

• Further expansion in non-funded and fee-based income streams

• Ongoing investment in digital, AI, and regional footprint

• Managing margin pressures in a lower rate environment

The Group continues to operate with strong capital (CET1 14.2%) and liquidity buffers, supporting future growth.

6. ???? Investor Takeaway

Emirates NBD delivered record income growth with strong balance sheet expansion and diversified revenue streams, maintaining solid profitability despite margin and provisioning pressures.