Three of the UAE’s largest banks reported higher first-half earnings on July 23, showing that domestic credit demand and fee income continued to support the sector through regional security disruptions. First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Emirates NBD generated about AED37 billion in combined profit before tax during the first six months of 2026, based on their reported results.
FAB reported H1 profit before tax of AED13.20 billion, up 3% year on year, while net profit reached AED10.73 billion. Its second-quarter pre-tax profit rose 6% from a year earlier and 16% sequentially to AED7.08 billion. Net interest income increased 14% to AED11.48 billion, while non-interest income supplied 41% of operating revenue. Loans expanded 7% year to date to AED661 billion, and the non-performing loan ratio improved to 2.2%.
UAE Banks Generate AED37 Billion in H1 Pre-Tax Profit
ADCB produced the fastest earnings growth. H1 profit before tax climbed 28% to AED7.61 billion, with Q2 profit rising 26% to AED3.83 billion, its twentieth consecutive quarter of growth. Net loans increased 10% year to date to AED445 billion, while deposits rose 5% to AED527 billion. Non-interest income gained 22%, and lower impairment charges helped reduce the first-half cost of risk to 38 basis points from 69 basis points a year earlier.
Emirates NBD reported H1 pre-tax profit of AED16.2 billion, up 5%, supported by a 13% increase in net interest income and 25% growth in non-funded income. Gross loans rose 17% to AED771 billion, deposits reached AED892 billion and total assets exceeded AED1.3 trillion. Part of that expansion came from the consolidation of RBL Bank, which added AED44 billion of loans and AED43 billion of deposits, so the headline balance-sheet growth was not entirely organic.
UAE’s Largest Banks Enter H2 With AED1.88 Trillion of Loans
The common thread was volume rather than wider margins alone. Loan books grew across corporate and retail businesses, deposits remained ample, fee income increased and impaired-loan ratios stayed near historic lows. ADCB’s net interest margin narrowed after three rate cuts since September 2025, yet higher lending and lower credit costs still lifted earnings. That mix suggests UAE banks can absorb some rate pressure while economic activity remains supportive.
ETF investors already carry substantial exposure to the results. As of July 24, FAB, Emirates NBD and ADCB represented a combined 33.51% of the ADX-listed Lunate S&P UAE UCITS ETF income share class, ticker UAED. The same banks accounted for 32.97% of the DFM-listed accumulating share class, ticker CHAE. Strong bank earnings therefore have an outsized influence on broad UAE equity ETF returns, while Shariah-screened UAE funds provide a different exposure because conventional lenders are excluded.
