Emirates NBD Bank (EMIRATESNBD) Q4 2025 earnings summary

Executive summary

• Achieved record profit before tax of AED 29.8 billion in 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 129-130 billion) and deposits up AED 119 billion (18%), 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.

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

• Major acquisition: 60% stake in RBL Bank, India, expected to close in Q2 2026, with further tender offer required.

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.

• 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%, supporting 20% growth in risk-weighted assets and well above regulatory minimums.

• EPS increased to AED 3.71; return on tangible equity at 19.4%.

Outlook and guidance

• 2026 NIM guidance: 3.1%-3.3%, reflecting expected rate cuts and margin normalization.

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

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

• Guidance excludes RBL acquisition; pro forma impacts to be shared post-closing.

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