Borrowers make limited use of Emirates NBD loan relief

• Low demand for loan deferrals
• NPL ratio declines to 2%
• Central bank support measures

Emirates NBD, Dubai’s largest lender by assets, reported “limited” demand from customers for emergency loan deferrals introduced following the outbreak of the US-Iran war, despite continued pressure on the tourism, trade and logistics sectors.

The low level of deferral demand and the decline in the bank’s non-performing loan ratio indicates that the regional conflict has not triggered widespread financial distress among its borrowers.

The financial institutions resilience package (FIRP), launched in March, has benefited almost 156,000 individuals, small and medium-sized enterprises (SMEs) and large corporations, according to the Central Bank of the UAE.

“The level of deferrals granted by the Group was not considered material, reflecting limited customer demand and utilisation of the programme,” the bank said in its latest financial result.

Early restructuring measures and payment deferral programmes, incorporating principal and interest deferrals have been implemented for companies impacted by the regional conflict and the bank said it ”continues to reassess the long-term viability of affected borrowers”.

Loan defaults fell by half a percentage point year on year in the first nine months of 2026, the lender said in financial statements published on the Dubai Financial Market.

The non-performing loan (NPL) ratio, which indicates the percentage of loans in default or overdue by 90 days or more, fell to 2 percent as of September 2026, down from 2.5 percent a year earlier, reflecting continued recoveries.

As a result, the bank revised its 2026 NPL ratio guidance down to 2 percent from 2.5 percent, indicating it forecasts fewer bad loans for the full year.

“Activity in sectors like tourism, trade and logistics remain moderated, with oil production expected to rise modestly in 2026 before accelerating in 2027,” the bank said.

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Despite the conflict, Emirates NBD’s profit after tax rose 2 percent to AED19.3 billion, as income rose 15 percent annually to AED42 billion between January and September, driven by a 33 percent surge in gross loans.

Deposits grew 19 percent, while total assets rose 18 percent in the first nine months of this year.

In June, Emirates NBD completed the acquisition of a 60 percent majority stake in RBL Bank for $2.8 billion.

“Capital and liquidity remain solid, even post-RBL Bank impact,” the lender said.

Emirates NBD shares closed 0.3 percent higher at AED31.50 on Tuesday but are up more than 13 percent since January 1.

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