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Emirates NBD, Dubai’s biggest bank by assets, reported on Thursday a 9 per cent fall in its first-half net profit, as lower recoveries and a new higher tax rate impacted the lender’s results.
The bank posted a net profit of Dhs12.5bn ($3.40bn) in the six months to June 30, down from Dhs13.8bn over the same period in 2024.
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ENBD, majority-owned by Dubai’s government, said recoveries in the first half of 2025 were down by Dhs2bn, which compared with “very strong recoveries” last year, the bank said in a statement.
UAE banks have been benefitting from steady economic growth, rising demand for credit and government-driven investment in non-oil sectors in recent years.
In Dubai, the Gulf’s tourism and financial hub, a business-friendly environment has attracted a slew of companies and high-net-worth clients, contributing to a spike in real estate prices.
However, ENBD said on Thursday that while in the first half, “property transactions in Dubai were higher compared with 2024”, price growth “is moderating.”
Ratings agency Fitch expects a correction in real estate prices in the second half and in 2026, as new builds come to the market, it said in May.
ENBD’s total assets reached Dhs1.09tn as of end-June, up 17 per cent from a year earlier, with both net interest income and non-funded income rising by double digits.
The bank’s total gross loans rose 12 per cent to Dhs570bn in the first six months, with nearly half of the increase coming from international operations.
They were outpaced by deposits, which grew 18 per cent to Dhs737bn.
Its net interest margin dropped to 3.47 per cent at the end of June, its lowest since 2022, impacted in the second quarter by a rate hike in Turkey, where ENBD operates through its unit DenizBank.
