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 performance across all business segments and geographies.

• Total assets surpassed AED 1 trillion, with gross loans up 24% (AED 129 billion) and deposits up 18% (AED 119 billion), and CASA balances up AED 69 billion.

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

• Board proposes a flat AED 1.00 (100 fils) dividend, prioritizing capital for growth and the RBL Bank acquisition.

• Strategic focus on digital transformation, customer experience, and international diversification, with digital wealth platform AUMA exceeding USD 100 billion.

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 also 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; coverage at 160%, with cost of risk at 24 bps.

• CET1 ratio at 14.4%, with strong capital generation supporting 20% RWA growth.

• Retail profit before tax reached AED 11.8 billion; C&IB lending up 42%; DenizBank profit at AED 1.5 billion.

Outlook and guidance

• 2026 NIM guidance set 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 bps for the group, with DenizBank expected to remain elevated at 150-200 bps.

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

• CBUAE to increase countercyclical capital buffer to 0.5% in 2026, raising minimum capital ratio by 30 bps.