First Abu Dhabi Bank and Emirates NBD on Thursday reported robust first-quarter earnings despite war-driven uncertainty.
Operating income for FAB climbed almost 6 per cent on an annual basis to Dh9.34 billion ($2.54 billion) at the end of the first three months of this year, the lender said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Net income for the reporting quarter, however, slipped to Dh5.01 billion, a 2 per cent year-on-year decline, as charges for loan impairments rose.
Net impairment charges at the end of March increased to Dh1.1 billion, up from Dh724 million in the same period of last year. The figure included “management overlays of Dh300 million in response to the evolving external environment”, the bank said. “Excluding these overlays, net profit grew by 3 per cent year on year.”
FAB, the UAE’s largest lender by assets, reported strong profitability growth across its business segments, with quarterly operating income growing 5 per cent on an annual basis to Dh7.22 billion.
“Our Q1 2026 performance demonstrates the strength of our diversified franchise, disciplined risk management, and strong credit profile, even amid a more volatile backdrop towards the end of the quarter,” said Hana Al Rostamani, group chief executive of FAB.
ENBD posts profit growth
Emirates NBD, the largest lender in Dubai, also reported strong revenue growth during the three-month period.
The bank's net income climbed 3 per cent annually and 27 per cent on a quarterly basis to Dh6.4 billion. Revenue jumped 21 per cent to Dh14.4 billion, the bank said in a statement to the Dubai Financial Market, where its shares are listed.
Operating profit before impairment charges also rose 24 per cent annually to Dh10.2 billion “reflecting strong income growth and disciplined cost management”, the bank said.
Net impairment charges for the period climbed to Dh826 million, primarily driven by “prudent provisioning” across the bank, as well as its Turkish subsidiary DenizBank.
“Our strategic investments in our regional footprint, digital capabilities and GenAI continue to drive strong income growth, offsetting the impact of lower interest rates,” said Emirates NBD group chief executive Shayne Nelson.
Financial sector resilience
Banks in the UAE are reporting their first earnings since the breakout of the Iran war, which has shaken global financial markets and caused an unprecedented energy shock.
The conflict, which passed the 50-day mark this week, has disrupted business across the Gulf, with Iran launching waves of missile and drone attacks at its Arab neighbours after the US and Israel launched co-ordinated attacks on the country.
Sectors including hospitality, aviation and retail have been disrupted, but banks have shown resilience despite economic and geopolitical headwinds. In March, the Central Bank of the UAE launched a support package to reinforce the stability of the financial sector in the country.
The regulator said fundamentals of the country's Dh5.4 trillion banking sector remain strong, and the package allows lenders to access more liquidity.
The package, backed by the CBUAE’s foreign exchange reserves of more than Dh1 trillion, also allow banks the flexibility to use their capital buffers to support the Emirates' economy, the central bank said at the time.
“The UAE has once again demonstrated exceptional resilience and strategic foresight, with swift actions by the leadership and the Central Bank of the UAE supporting robust liquidity and safeguarding financial stability,” said Hesham Al Qassim, vice chairman and managing director of Emirates NBD.
FAB and Emirates NBD said they remain focused on core business priorities and leveraging their strong capital position and liquidity buffers to support their clients.
The UAE has entered “this period of heightened geopolitical tension from a position of strength, supported by solid fiscal buffers, resilient supply chains and healthy domestic demand, allowing the economy to withstand the negative impacts and rebound quickly”, Emirates NBD said.
