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Emirates NBD reported a 3% year-on-year rise in its quarterly profit, marking its first financial update since the recent Middle East conflict. Profit reached 6.4 billion dirhams (USD 1.74 billion), supported by steady deposit growth and a stronger balance sheet. The bank recorded increases in loans, deposits, and total assets, which crossed 1.22 trillion dirhams. However, the lender also took a precautionary impairment charge of 865 million dirhams, reflecting cautious provisioning. Analysts noted potential pressure on growth due to regional uncertainties, although the bank’s financial position remains stable.
Emirates NBD, Dubai’s largest bank by assets, reported a 3% increase in its first-quarter profit compared to the same period last year, marking its first financial results since the onset of the recent Middle East conflict. The bank posted a profit of 6.4 billion dirhams (USD 1.74 billion), up from 6.2 billion dirhams a year earlier. Advertisement
The conflict, which began in late February and lasted for nearly two months, disrupted global markets, triggered an energy crisis, and saw Iranian attacks across parts of the Gulf, including areas impacting Dubai’s business and tourism environment. A fragile ceasefire was reached earlier this month, bringing some stability to the region.
In response to the crisis, UAE authorities introduced measures to support the banking sector, including steps by the central bank to maintain liquidity. The bank’s management stated that balance sheet growth remained strong, supported by continued momentum in deposits, which increased 6% year-to-date and continued to grow into April.
Emirates NBD, which is majority-owned by the Dubai government, reported total assets of 1.22 trillion dirhams at the end of the quarter. Gross loans and deposits grew by 7% and 6%, respectively, compared to the previous quarter, reflecting steady banking activity despite external pressures. The bank did not disclose a monthly performance breakdown for the quarter.
The lender also recorded an additional precautionary impairment charge of 865 million dirhams. This was driven by provisioning requirements at Emirates NBD and its Turkish subsidiary DenizBank, although some of the impact was offset by recoveries earlier in the year.
Analysts indicated that, given its strong retail presence and focus on Dubai, the bank could be more exposed to a potential slowdown in economic growth. They also observed that while deposit inflows particularly from current and savings accounts—have supported performance in recent years, the pace of such inflows may moderate going forward. At the same time, the bank’s overall balance sheet remains stable, although the cost of risk is expected to increase.
Emirates NBD has previously demonstrated resilience during periods of regional volatility, supported by a diversified portfolio and strong government backing. Its consistent deposit base and capital position have helped it manage past economic disruptions, including the pandemic period.
Source Reuters
5th Jun, 2025
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