Emirates NBD reported operating income of AED 42.2 billion (about $11.49 billion) in the first nine months of 2026, up 15% year-on-year, as strong lending demand, higher fee income and expansion across its core markets supported growth. Operating profit before impairment increased 14% to AED 29 billion (about $7.90 billion), while profit before tax rose at a slower pace of 4% to AED 24.3 billion (about $6.62 billion), reflecting higher impairment and hyperinflation-related charges.

Patrick Sullivan, Group Chief Financial Officer of Emirates NBD, attributed the slower growth in pre-tax profit to higher charges, stating: “Profit before tax rose 4% to AED 24.3 billion in the first nine months of 2026, despite higher impairment and hyperinflation charges.”

Shayne Nelson, Group Chief Executive Officer of Emirates NBD, attributed the results to strong customer momentum and broad-based growth across the bank's core markets. However, the slower growth in pre-tax profit relative to operating income highlights the importance of distinguishing organic performance from acquisition-driven expansion, particularly as the consolidation of India's RBL Bank increases the group's operating scale and capital requirements.

Strong organic lending growth increases the importance of pricing discipline

Gross loans reached AED 833 billion (about $226.8 billion) at the end of September 2026, up 27% year-to-date, including 18% organic growth excluding India's RBL Bank. Corporate lending increased 22%, outpacing retail growth of 17%, while new lending totalled AED 174 billion (about $47.4 billion) during the first nine months.

Sullivan described corporate lending growth as broad-based across government-related entities, government borrowers and private-sector customers, particularly in the UAE. He indicated that more than half of loan origination and actual growth came from the private sector, demonstrating that expansion was not concentrated in government-related activity. The pace of corporate lending growth reinforces the importance of risk-adjusted pricing and capital allocation.

The non-performing loan (NPL) ratio improved from 2.4% at year-end 2025 to 2.0% in September 2026, prompting management to revise its full-year guidance from approximately 2.5% to 2.0%. However, the improvement largely reflected portfolio expansion rather than a reduction in impaired loans. Sullivan attributed the decline “mainly to the larger lending denominator and no net material change in the NPL stock balance”.

The cost of risk declined from 42 basis points in H1 2026 to 37 basis points for the first nine months, remaining above the 24 basis points recorded for full-year 2025. Impairment allowances reached AED 2.1 billion (about $572 million), primarily reflecting DenizBank provisioning, partly offset by recoveries at Emirates NBD.

DenizBank's nine-month net interest margin increased 84 basis points year-on-year to 6.87%, providing evidence of the recovery anticipated earlier in 2026. However, its quarterly margin moderated to 6.64% in Q3. Alongside continued impairment provisioning, this highlights the importance of sustaining interest spreads while managing credit costs.

Emirates NBD's capital adequacy ratio declined to 15.4% and CET1 ratio to 13.4% in Q3 2026, while its NPL ratio improved to 2.0%, reflecting the combined effects of balance-sheet expansion and changes in reported asset quality.

Deposit growth supports expansion but funding economics remain critical

Customer deposits increased 19% year-to-date to AED 935 billion ($254.6 billion), supported by growth across business segments. Excluding RBL Bank, organic deposits grew 12%, trailing organic lending growth of 18% and placing greater emphasis on funding efficiency.

Net interest income rose 14% to AED 29.4 billion ($8.01 billion), while the net interest margin stood at 3.24%, within the bank's full-year guidance of 3.1%–3.3%.

Deposit composition also shifted. Current and savings account (CASA) balances declined 7.5% from AED 439 billion ($119.5 billion) at year-end 2025 to AED 406 billion ($110.6 billion) in September 2026, while time deposits increased 49% from AED 239 billion ($65.1 billion) to AED 354 billion ($96.4 billion). CASA represented 53% of deposits excluding DenizBank and RBL Bank. Sullivan attributed the migration towards time deposits primarily to corporate customers, noting that competition for liquidity was increasing across the market. He explained that the higher share of time deposits had raised funding costs, although disciplined asset pricing helped offset the impact on margins.

Emirates NBD issued AED 34.8 billion ($9.48 billion) in term debt and sukuk during the first nine months of 2026, diversifying its funding sources.

Meanwhile, the liquidity coverage ratio improved to 147% in Q3 from 135% in Q2, remaining above the 100% regulatory minimum but below the 152% recorded at year-end 2025. The quarterly improvement indicates a stronger short-term liquidity position alongside continued balance-sheet expansion.

Liquidity coverage recovered in Q3 as the year-to-date cost of risk eased, although the latter remained above the full-year 2025 level, highlighting the need to balance funding resilience with credit discipline.

Fee income diversification strengthens customer relationship profitability

Non-funded income increased 18% year-on-year to AED 12.8 billion (about $3.49 billion), outpacing the 14% growth in net interest income and representing approximately 30% of total operating income. Net fee and commission income rose 22% to AED 7.4 billion (about $2.02 billion), accounting for nearly 58% of non-funded income, while other non-funded income increased 12% to AED 5.4 billion (about $1.47 billion). Sullivan linked the expansion to growth in fee-generating assets and customer activity across cards, wealth management, trade finance and transaction banking.

The bank's expanding corporate franchise supports fee generation through transaction banking, cash management, trade finance and foreign exchange services, broadening revenue opportunities beyond lending without a proportional increase in credit exposure. Digital expansion complements this strategy, with ENBD X offering 237 services, up from 150 at its launch in 2023.

Wealth management provides another source of fee-generating activity, with UAE assets under management, including assets under administration, increasing 15% since February 2026. Nelson highlighted the group's position to capture regional wealth flows, reflecting opportunities to deepen affluent customer relationships. However, the contribution to recurring earnings will depend on sustained client activity, asset retention and the composition of investment-related fees.

Emirates NBD Capital executed more than 70 debt capital markets transactions across 13 countries during the first nine months of 2026, helping clients raise over $60 billion. This broadens the group's corporate financing capabilities beyond traditional lending, although transaction-related revenue may fluctuate with capital market activity.

Operating expenses rise 19% as cost-to-income ratio reaches 31.4%

Operating expenses increased 19% to AED 13.3 billion ($3.61 billion), lifting the nine-month cost-to-income ratio to 31.4% from 30.5% a year earlier. The increase reflected the group's expanding operating scale, including the consolidation of RBL Bank, alongside continued investment and inflationary pressures.

The quarterly cost-to-income ratio increased from 29.2% in Q1 to 34.2% in Q3, reflecting a higher reported expense base, including the full-quarter consolidation of RBL Bank.

Sullivan explained that the nine-month cost-to-income ratio was 30.8% excluding RBL Bank, compared with the reported 31.4% for the group. He indicated that the consolidated full-year ratio could reach approximately 33% or slightly above, reflecting RBL Bank's higher operating cost base. This distinction suggests that the increase in reported costs partly reflects acquisition-related consolidation rather than equivalent expense growth across Emirates NBD's existing operations.

Cost-to-income ratios showed diverging trends across three major UAE banks in the third quarter of 2026. Emirates NBD recorded the sharpest increase, with its ratio rising 3.5 percentage points quarter-on-quarter to 34.2%, compared with a 0.4 percentage-point rise to 28.4% at Abu Dhabi Commercial Bank (ADCB). In contrast, Mashreq improved its ratio by 0.6 percentage points to 31.3%, as income growth outpaced expenses. Emirates NBD's operating expenses grew 18%, against income growth of 6%, although expenses excluding DenizBank and RBL Bank increased by only 1%. The comparison highlights differing cost-efficiency trends, with Emirates NBD's more pronounced movement partly reflecting the enlarged cost base of its international operations.

International expansion strengthens the franchise and increases capital requirements

Emirates NBD expanded its international presence through the acquisition of a 60% stake in India's RBL Bank in June 2026 and an agreement to acquire HSBC Bank Egypt's retail business, subject to regulatory approvals. Nelson described the Egypt agreement as “an exciting step forward in our regional growth strategy”.

Total assets rose 18% year-to-date to AED 1.38 trillion ($375.8 billion), supported by organic growth and RBL Bank's consolidation. At the end of June, RBL Bank contributed AED 74 billion ($20.2 billion) in assets, AED 44 billion ($12 billion) in loans and AED 43 billion ($11.7 billion) in deposits. In its first full quarter of consolidation, it generated AED 1.08 billion ($294.1 million) in income and AED 292 million ($79.5 million) in profit after tax.

Sullivan identified opportunities to reduce RBL Bank's funding costs by replacing expensive term borrowing through capital injections and foreign-currency non-resident deposits, with benefits expected in Q4 2026 and Q1 2027. Nelson also highlighted potential savings from retaining cross-border funding flows within the group. These initiatives could improve the acquisition's earnings contribution, although the savings remain unquantified.

The group's Common Equity Tier 1 (CET1) ratio declined from 14.4% at year-end 2025 to 13.4% in September 2026, remaining above the 11.17% regulatory minimum. The longer-term value of international expansion will depend on funding efficiencies, integration and sustainable risk-adjusted returns.

Sustaining profitability will depend on funding, credit and capital efficiency

Emirates NBD enters the final quarter of 2026 with strong lending momentum and a greater focus on translating balance-sheet expansion into sustainable earnings growth. Management raised its full-year gross loan growth guidance from the mid-teens to the low-20% range, while maintaining net interest margin guidance of 3.1%–3.3% and cost-of-risk guidance of 30–50 basis points. The bank maintained its full-year cost-to-income ratio guidance of 33% or lower. The nine-month ratio stood at 31.4%, or 30.8% excluding RBL Bank. Its non-performing loan ratio guidance was revised to approximately 2.0%, from around 2.5%.

The revised outlook reflects confidence in continued credit demand, although faster lending growth relative to organic deposits places greater emphasis on funding costs and margin protection. Meanwhile, the expansion into India and Egypt creates opportunities to diversify earnings but increases the importance of capital allocation and integration discipline.

The bank's next challenge is converting its larger balance sheet and broader customer franchise into stronger returns. Sustaining profitability will depend on containing funding and credit costs, restoring operating efficiency and ensuring that international expansion generates adequate risk-adjusted returns.