Financing growth lifts Emirates Islamic’s income + regional tensions weigh on DTC’s results

Emirates Islamic sees bottom line tick up

Emirates Islamic’s net income edged up 1.2% y-o-y to AED 864.3 mn in 2Q 2026, even as total operating income rose 9.1% to AED 1.6 bn, according to its financials (pdf). Income from financing receivables and investment products was nearly flat at AED 1.2 bn during the quarter, while net fee and commission income rose 1.8% to AED 181.8 mn. Meanwhile, other operating income streams brought in AED 289.3 mn, up from AED 161.8 mn the year before.

On a 1H basis, the bank posted an 8% y-o-y dip in net income to AED 1.7 bn, while total income climbed 7.8% to AED 3.2 bn, according to its earnings release. Operating income rose 10% y-o-y to AED 2.2 bn as expenses increased at a slower 3% pace, bringing its cost-to-income ratio to 29.1.

The balance sheet did the heavy lifting: Customer financing grew 9.1% since the start of the year to AED 97 bn, slightly outpacing the 8.3% rise in deposits to AED 110.6 bn. Low-cost current and savings accounts made up 65% of deposits, helping support a 3.1% net income margin.

A glimpse of that growth: Emirates Islamic extended a AED 250 mn sustainability-linked facility to Brands for Less in May and earlier structured USD 500 mn in funding for a 1.7 GW hydrogen-ready power plant in Romania. Asset quality remained stable despite the larger financing book, with its non-performing financing ratio at 2.5%.

Regional tensions weigh on DTC earnings

Dampened tourism demand on the back of regional instability weighed on Dubai Taxi Company’s (DTC) 2Q results. Net income for 2Q 2026 fell 90.1% y-o-y to AED 10.4 mn, while revenue declined 22.5% to AED 484.5 mn, according to its latest financials (pdf) and a separate earnings release.

Behind the results: Weaker airport and tourism-related demand hit its core taxi and limousine business, which were down 24.4% y-o-y in the quarter; however, the decrease in activity moderated from April through June, it said. The bus segment bucked the trend, with revenue rising 2.3% y-o-y to AED 32 mn on the back of long-term government contracts. Delivery bikes remained the standout performer, with revenue jumping 53.1% to AED 27.9 mn as demand for on-demand delivery services continued to grow.

In 1H, net income fell to AED 61.1 mn, down from AED 189 mn the year before, while revenue came in at just over AED 1 bn, down from AED 1.2 bn in 1H 2025. The company said the decline reflected a strong start to the year in January and February before softer demand from the outbreak of the war.

No interim dividend this year: Breaking with its usual practice, DTC’s board said it will consider any FY 2026 shareholder distribution at year-end instead of paying a semiannual dividend, saying the move gives it greater flexibility to preserve financial resilience while funding long-term growth initiatives.