Emirates NBD, Dubai’s largest bank by assets, said net profit rose for the first quarter of 2026, supported by higher lending and deposit growth.

Net earnings rose 3 percent to AED6.4 billion ($1.7 billion) in the quarter, compared to AED6.2bn a year ago.

Total income jumped 21 percent annually to AED14.4 billion, the lender said.

Non-funded income surged 44 percent, while net interest income was up 12 percent.

“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 group CEO Shayne Nelson.

Lending increased by 7 percent year-on-year to AED703 billion in the first quarter, driven by robust growth across most sectors. Deposits remain a core strength of the bank, rising 6 percent annually to AED830 billion.

Total assets rose 18 percent year on year to AED1.2 trillion.

Emirates NBD agreed in October to take a 60 percent share in the Indian private lender RBL Bank for $3 billion through a preferential issue. 

Investment Corporation of Dubai owns a 41 percent stake in Emirates NBD.

The UAE central bank in March rolled out emergency measures to support banks, temporarily loosening liquidity rules and expanding access to funding as the Iran War impacted the UAE economy.

There has been no material impact on the banking sector’s health and payment systems, the board of the central bank said.

UAE banks hold nearly AED920 billion with the central bank, including more than AED400 billion in reserves. Foreign reserves exceed the monetary base, with a 119 percent cover ratio, giving the monetary authority strong capacity to support the system.

S&P Global Ratings said Gulf banks could call upon $630 billion in cash, liquid investments and central-bank deposits if a prolonged war with Iran sparks widespread customer withdrawals.