UAE banks H1 2026 profits rise 7.65% to AED47.79bn as lending and deposits strengthen
UAE banks H1 2026 profits rose 7.65% to AED47.79bn as lending, deposits and fee income strengthened, with six banks accounting for 87% of total sector profits.
The UAE banks H1 2026 profits report shows a resilient banking sector as listed lenders posted a combined net profit of AED47.79 billion in the first half of 2026, up from AED44.39 billion a year earlier. Growth was driven by rising deposits and expanded loan books alongside higher fee income and improved operating efficiency. Analysts say the results outperformed expectations despite regional geopolitical uncertainty, underlining the banking sector’s role as a core pillar of the national economy.
Consolidated first-half results
The aggregate net profit for 14 banks listed on the Abu Dhabi Securities Exchange and Dubai Financial Market reached AED47.79 billion, reflecting a 7.65% year‑on‑year increase over H1 2025. That AED3.4 billion uplift was supported by stronger net interest income and a notable rise in non‑interest revenue. Banks also managed provisioning prudently, which helped preserve bottom‑line strength while preparing for potential future shocks.
Performance split between exchanges
Results varied by market, with five banks listed in Dubai Financial Market reporting combined net profits of about AED22.59 billion for H1 2026, up 4.29% year‑on‑year. Nine banks listed on the Abu Dhabi Securities Exchange recorded roughly AED25.2 billion in net profit, a 10.86% increase from the same period last year. The dispersion highlights stronger year‑on‑year momentum among Abu Dhabi‑listed banks during the six‑month period.
Top six banks drive majority of gains
Six major lenders — Emirates NBD, First Abu Dhabi Bank, ADCB (Abu Dhabi Commercial Bank), Mashreq, Abu Dhabi Islamic Bank and Dubai Islamic Bank — accounted for approximately AED41.89 billion of the total, representing about 87% of the combined profits. Concentration among the largest institutions underscores their dominant market share in deposits, corporate lending and Treasury activities. Their scale and diversified income streams helped the sector absorb pressure points while maintaining profitability.
Operational drivers and loan growth
Analysts point to continued expansion in lending to real estate, infrastructure and corporate sectors as a primary growth engine for UAE banks H1 2026 profits. Wael Mahdi, trading director at Dhaman Securities, said banks successfully attracted deposit inflows and expanded credit portfolios, which translated into higher net interest income and broader revenue bases. He added that banks improved non‑interest income through fees and services, reducing reliance on interest margins alone.
Investor confidence and credit outlook
Market commentary noted that international rating agency assessments, including a stable outlook from S&P Global, reinforced investor confidence in UAE banks and supported foreign participation in the banking sector. Waddah Al‑Taha, a member of the National Advisory Council at the Chartered Institute for Securities and Investment, said the stable ratings reflect underlying sector strength and governance. Positive investor response to H1 results suggests continued appetite for UAE banking exposure, particularly for institutions with diversified earnings and solid capital buffers.
Outlook for the second half and risks ahead
Looking toward H2 2026, industry observers expect banks to sustain earnings growth if lending demand and deposit stability continue, although outcomes will remain sensitive to interest‑rate moves and regional geopolitics. Some analysts flagged that net interest income could be affected by future rate adjustments, but also noted that banks have been actively diversifying revenues and managing provisioning to mitigate downside risk. Overall, the expectation is for continued robust performance driven by domestic economic activity and ongoing investment inflows.
The H1 results reinforce the UAE banking sector’s resilience and its pivotal role in financing the country’s development pipeline, with lenders demonstrating capacity to grow earnings while maintaining prudent risk management.