Three banks in Dubai have reduced their total provisions for impairment set aside during 2025 by 268 million dirhams, a decrease of 21%. At the same time, the net profits of four banks in the region reached approximately 35 billion dirhams, reflecting the resilience of the banking sector and improvements in economic conditions amid global challenges.
According to an analysis, the financial statements of three listed national banks on the Dubai Financial Market—Emirates NBD, Dubai Islamic Bank, and Dubai Commercial Bank—indicated a 21% reduction in impairment provisions during 2025, amounting to 1.007 billion dirhams compared to 1.275 billion dirhams in the same period of 2024.
In contrast, Mashreq Bank experienced a significant increase in its impairment provisions by 167.47%, totaling 444.16 million dirhams in 2025, up from 166.06 million dirhams in 2024.
Emirates NBD garnered the largest share of overall profits, achieving a 4% growth with earnings reaching 23.98 billion dirhams. The bank’s assets rose by 16.8% to 1.164 trillion dirhams, loans surged by 26.8% to 632.85 billion dirhams, and deposits increased by 18% to 786 billion dirhams.
The bank also saw a dramatic decline in the value of its impairment provisions in 2025, falling by 98.6% to just 1.47 million dirhams, compared to 106 million dirhams in 2024.
Dubai Islamic Bank
Dubai Islamic Bank reported its financial results for the year ending December 31, 2025, with revenues reaching 13.3 billion dirhams. Pre-tax profits showed a 20% year-on-year growth, amounting to 9 billion dirhams, while the net profit attributable to the bank’s owners was about 7.5 billion dirhams. Total assets experienced a 21% increase, reaching 416 billion dirhams, and a cash dividend of 35 fils per share has been proposed, pending approval from shareholders and regulatory authorities.
The bank’s impairment provisions were decreased by 19.3% to 485.4 million dirhams in 2025, down from 406.8 million dirhams in 2024.
Mashreq Bank
Mashreq Bank reported remarkable results for the fiscal year 2025, marked by strategic international expansion and record growth in loans and deposits. The bank has reestablished its strategic position as a bridge connecting new trade routes across Asia, the Middle East, Europe, and North America. The pre-tax profit stood at 8.3 billion dirhams, with a post-tax profit of 7 billion dirhams, demonstrating the bank’s ability to leverage its expansive and diverse operations while maintaining strong operational discipline despite the corporate tax implementation.
In line with this, the bank increased its impairment provisions significantly in 2025 by 167.47% to 444.16 million dirhams, compared to 166.06 million dirhams in the prior year.
Dubai Commercial Bank
Dubai Commercial Bank reported a net profit of 3.5 billion dirhams, reflecting a growth of 15.5%. Total assets rose by 14.4% to 160.3 billion dirhams, while loans increased by 8.6% to 101 billion dirhams and deposits grew by 14% to 111.35 billion dirhams.
The bank reduced its impairment provisions by 31.6% to 521.1 million dirhams in 2025, compared to 762.2 million dirhams in 2024.
Robust Economy
Vijay Valisha, the Chief Investment Officer at Century Financial, attributed the decline in provisions among Dubai’s banks to a decrease in loan defaults. This reduction can be traced back to improvements in real estate asset recoveries and mortgages, along with strong performance in the non-oil sectors within the region.
Valisha further emphasized that Dubai’s strategic infrastructure and special economic zones have been pivotal in driving growth, as Dubai continues to establish itself as a global investment hub, attracting substantial foreign investments.