The results cover First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank and Mashreq. Together, these five banks handle the majority of banking activity in the UAE, holding around 79 per cent of the country’s total banking assets.
How the Banks Performed
Customer deposits grew by 16 per cent year-on-year and lending activity increased, with continued financing across real estate, infrastructure and other sectors tied to the UAE’s long-term investment plans.
Net interest income — the revenue generated from the difference between what is earned on loans and what is paid on deposits — reached Dh46.8 billion, up 11 per cent compared to the first half of 2025.
Services such as trade finance, wealth management and transaction banking also contributed to the results. Revenue from these activities reached Dh26 billion, making up more than a third of total operating income. This shows that the UAE banking sector is becoming less dependent on interest rates alone and is building a broader base of revenue.
Risk Management and Credit Quality
The sector has also strengthened its risk management during the period, increasing loan-loss provisions as a precautionary measure. At the same time, non-performing loan ratios improved across all five institutions compared to last year, with fewer borrowers falling behind on their payments.
The combined assets of the five banks reached approximately Dh4.35 trillion by the end of H1 2026, up 14 per cent year-on-year. The sector’s capital adequacy ratio, which indicates a bank’s capacity to withstand financial stress, stood at 17 per cent, well above the 10.5 per cent international minimum.
Profitability is expected to remain sound through the rest of 2026, supported by ongoing government-led investment and infrastructure spending.
