Emirates NBD Bank (EMIRATESNBD) Q4 2025 earnings summary

Executive summary

• Achieved record profit before tax of AED 29.8 billion for FY 2025, up 10% year-on-year, with total income rising 12% to AED 49.3 billion, driven by strong loan growth, resilient margins, and robust non-funded income.

• Total assets surpassed AED 1 trillion, with gross loans up 24% (AED 129 billion) and deposits up 18% (AED 119 billion), supported by strong CASA growth.

• Emirates Islamic and DenizBank delivered record profits, with KSA operations showing 48% loan growth and international operations contributing 35% of group income.

• Strategic focus on customer-centricity, digital transformation, international diversification, and sustainable finance, with over $9.9 billion in sustainable finance transactions and AUMA exceeding USD 100 billion.

• Board proposes a flat AED 1.00 (100 fils) dividend per share, reflecting strong capital position and performance, and prioritizing capital for growth and upcoming RBL acquisition.

Financial highlights

• Net interest income grew 10% year-on-year to AED 35.5 billion, with non-funded income up 18% to AED 13.8 billion and fee/commission income up 18%.

• Operating profit before impairment rose 13% to AED 34.3 billion; cost-to-income ratio improved to 30.5%, below 33% guidance.

• NPL ratio improved to 2.4% in 2025, with coverage ratio at 160% and Stage 3 coverage at ~87%.

• Cost of risk for 2025 at 24 basis points, with Q4 at 110 basis points due to lower UAE recoveries and elevated DenizBank risk.

• CET1 ratio at 14.4%, well above regulatory minimums, supporting 20% RWA growth.

Outlook and guidance

• 2026 NIM guidance at 3.1%-3.3%, reflecting expected rate cuts and ongoing margin pressure.

• Loan growth guidance for 2026 in the mid-teens, with moderation expected after exceptional 2025 growth.

• Cost of risk guidance for 2026 at 30-50 basis points, with DenizBank expected to remain elevated (150-200 bps).

• Dividend expected to remain flat at 100 fils, with capital reserved for growth and RBL acquisition impact.

• NPL ratio guidance: ~2.5% for 2026.