Emirates NBD's Profit Holds Steady as U.A.E. Economy Faces Iran War Disruptions

By Farhan Rafid

DOHA, Qatar--Emirates NBD posted broadly steady second-quarter profit as strong lending and customer activity helped Dubai's biggest bank withstand the economic disruption caused by the Iran war.

The bank made a net profit of 6.44 billion dirhams ($1.75 billion) in the three months through June, up 2.2% from the same period last year.

The results cover the first full quarter since the war between the U.S. and Iran began in late February, disrupting air travel, shipping and supply chains across the Gulf and prompting U.A.E. authorities to introduce measures intended to preserve liquidity and support affected businesses and households.

Emirates NBD said domestic demand remained resilient despite the uncertainty, with business surveys continuing to indicate expansion in the U.A.E.'s non-oil economy. It said the effect of recent geopolitical developments on financial markets had been smaller than during the initial months of the conflict.

The International Monetary Fund said following a visit to the country this month that the U.A.E. economy had shown significant resilience to the conflict, helped by large financial buffers, a rapid policy response and the rerouting of oil and other trade flows. The fund said the banking system remained well capitalized and liquid, with loans and deposits continuing to grow, though liquidity had tightened since the fighting began.

Ratings firms have also maintained a broadly positive view of the sector. S&P Global Ratings expects the financial profiles of U.A.E. banks to remain stable this year, supported by strong liquidity, customer deposits and continued credit growth, though it has warned that a prolonged escalation could hurt tourism, trade and investment flows.

Emirates NBD's own ratings carry stable outlooks. Fitch affirmed the lender at A+ in March, while Moody's rates it A1 following an upgrade last year.

Write to Farhan Rafid at farhan.rafid@wsj.com

(END) Dow Jones Newswires

July 23, 2026 05:07 ET (09:07 GMT)