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Earnings Report

Emirates NBD

Q1 26 NEUTRAL LOW Impact

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.