First Abu Dhabi Bank recorded a 24 per cent increase in net profit to Dh21.1 billion in 2025 while ADCB posted a 22 per cent rise and Emirates NBD expanded loans by 26 per cent, a Khaleej Times report published on February 8, 2026 showed. These results reflect broader sector momentum that analysts expect to carry into the new year. The performance comes as the UAE economy demonstrated robust non-oil expansion.
According to the Central Bank of the UAE, non-hydrocarbon GDP growth reached 4.9 per cent in 2025, supporting banking activity across corporate and retail segments. Sector assets climbed 18.1 per cent year on year by September 2025 with loans advancing 6.5 per cent quarter on quarter in the third quarter and deposits rising 4.3 per cent. Such balance sheet expansion provided a solid platform for further lending in 2026.
S&P Global Ratings projected that UAE banks would maintain strong profitability and asset quality in 2026 even as interest margins normalize. The agency highlighted resilient economic conditions, healthy capital buffers and ample liquidity as key supporting factors. Fitch Ratings similarly anticipated continued sector resilience backed by solid capitalisation and government support.
The banking sector’s performance was underpinned by solid macroeconomic momentum, an assessment in the report noted. Digital transformation initiatives have further enhanced operational efficiency across UAE lenders. International operations at major banks are also set to expand in 2026, according to Fitch Ratings.
Subsequent data from Alvarez and Marsal indicated that lending growth accelerated to 5.8 per cent quarter on quarter in the first quarter of 2026 while deposits increased 3.8 per cent. Operating income rose 7.7 per cent in the period with the cost to income ratio improving to 27.3 per cent. These figures align with the positive outlook outlined earlier in the year.
UAE banking assets reached approximately AED5.34 trillion by the end of 2025, representing a 17 per cent annual increase from AED4.56 trillion the prior year, according to sector compilations. Credit growth for the full year stood at around 18 per cent. Analysts continue to monitor the impact of global rate adjustments on net interest margins going forward.
