UAE Banks Post Resilient Second-Quarter Results Despite Regional Tensions

The UAE's largest banks reported resilient second-quarter results, demonstrating the sector's strength even as geopolitical tensions in the region persisted. Abu Dhabi Commercial Bank led the gains with a roughly 31% surge in quarterly profit, as its cost of loan-loss provisions eased from an exceptionally elevated level a year earlier. Emirates NBD reported a record first-half pre-tax profit of about 16.2 billion dirhams, up 5% year-on-year, with second-quarter profit rising nearly 2% to 6.4 billion dirhams on stronger net interest income, fee income and trading revenue; its cost-to-income ratio improved to below 30% and its balance sheet was boosted by the consolidation of India's RBL Bank, lifting group assets above 1.3 trillion dirhams. Smaller lender RAKBank also grew profit. Analysts had expected a moderate decline in some banks' quarterly earnings after a cautious approach to provisioning during the conflict, but the results underscored solid customer activity, healthy lending and balance-sheet growth supported by the wider UAE economy. Bankers said public spending and diversified income streams continued to underpin performance, positioning the sector as a key pillar of the country's economic expansion.