Despite fallout from the war, Emirates NBD and FAB beat earnings expectations in 1Q 2026

The UAE’s two biggest banks, each of them state-backed, turned in healthy earnings that beat analysts’ pre-conflict expectations for profits. The earnings are the first reports out of the banking sector since the war began nearly two months ago and reflect one month of the impact from the conflict.

Emirates NBD said its net income rose 3% to AED 6.4 bn while revenues surged 21% to a record AED 14.4 bn. Deposits grew 6% in the quarter and the trend continued into April, the bank said. ENBD saw its gross loans grow even faster (+7% compared to the same period last year), but it’s unclear how much of the loan or deposit growth was driven by activity with government or government-related entities.

ENBD also signalled that its big Indian acquisition is on track, with CEO Shayne Nelson quoted as saying in the group’s earnings release (pdf), “Our international expansion strategy remains a core pillar as we look forward to closing the RBL transaction and welcoming them to the Group.” A the start of this month. India’s bank regulator gave Emirates NBD the nod for the more than USD 3 bn acquisition of up to 74% of RBL Bank.

First Abu Dhabi Bank (FAB) saw net income slip 2% y-o-y to AED 5.0 bn in 1Q 2026, even as operating income rose 6% to AED 9.3 bn, according to its management discussion and analysis report (pdf). The drag came from higher provisioning rather than weaker core activity, with net interest income climbing 12% to AED 5.61 bn.

FAB said it is booking impairment charges of AED 1.1 bn “in response to the evolving external environment,” a more than 50% increase over last year. Emirates NBD booked impairments of AED 1.1 bn.

IN OTHER EARNINGS NEWS: UAE Telco du’s net income rose 15.5% y-o-y to AED 834 mn in 1Q 2026, on revenue of AED 4.1 bn, up 6.9% y-o-y, according to its earnings release (pdf).