Three banks in Dubai have reported a total reduction in provisions for impairment set aside during the first half of this year, amounting to 2.6 billion dirhams, indicating a decrease of approximately 77.6%. Meanwhile, the total net profits for these banks reached around 18 billion dirhams, showcasing the resilience of the banking sector in the emirate and improvements in Dubai’s economic conditions despite global challenges.
According to an analysis, the financial statements of three listed national banks in the Dubai Financial Market—Emirates NBD, Dubai Islamic Bank, and Dubai Commercial Bank—show a significant 77.6% decline in impairment provisions during the first half of 2025, totaling 746.24 million dirhams. This is a decrease from the 3.33 billion dirhams noted in the same period of 2024.
Conversely, Emirates Islamic Bank and Mashreq Bank reported an increase in impairment provisions by 192%, amounting to 380.7 million dirhams during the first half of 2025, compared to 130.35 million dirhams for the same timeframe last year.
Emirates NBD
Emirates NBD led Dubai’s banks in profitability, posting net earnings of 12.53 billion dirhams (including profits from Emirates Islamic Bank) for the first six months of this year. The bank’s pre-tax profits reached 15.4 billion dirhams, with revenues increasing by 12% to 23.9 billion dirhams.
The bank reduced its impairment provisions by 87.4% to 278 million dirhams in the first half of 2025, down from 2.2 billion dirhams during the same period of 2024.
Emirates Islamic Bank
Emirates Islamic Bank achieved record profits of 1.86 billion dirhams in the first half of this year, a 12% increase compared to the same period last year. The bank also reported pre-tax profits of 2.2 billion dirhams, reflecting robust growth momentum.
However, it saw a 59% increase in impairment provisions, totaling 135.9 million dirhams, compared to 85.47 million dirhams from the same period in 2024.
Dubai Islamic Bank
The net profits of Dubai Islamic Bank rose by 10% during the first half of 2025, reaching 3.73 billion dirhams, up from 3.38 billion dirhams in the same period last year.
The bank lowered its impairment provisions by 60.75%, amounting to 256 million dirhams, down from 652.3 million dirhams in the corresponding period of 2024.
Mashreq Bank
Mashreq Bank reported net profits of 3.47 billion dirhams for the first six months ending June 30, 2025.
The bank increased its impairment provisions by 445.45% during the first half of 2025, reaching 244.8 million dirhams, up from 44.88 million dirhams in the same period of 2024.
Dubai Commercial Bank
Dubai Commercial Bank recorded net profits after tax of 1.7 billion dirhams, up by 16.7% compared to the same period last year. The bank’s pre-tax profits amounted to 1.86 billion dirhams, marking a 16.7% increase from the corresponding period in the previous year.
The bank reduced its impairment provisions by 54.9%, totaling 212.24 million dirhams during the first half of 2025, compared to 471.01 million dirhams in the same period last year.
Encouraging Infrastructure
Aaron Leslie John, a senior market analyst, emphasized that strategic infrastructure and special economic zones have significantly contributed to growth. Dubai has successfully created a business-friendly environment, attracting substantial foreign investments and solidifying its status as a global investment hub.
He noted that Dubai’s GDP growth has increased demand for financing, despite rising interest rates, which has helped improve banks’ profit margins.
It is anticipated that the downward trend in provisions and non-performing loan ratios at local banks will continue, supported by strong performances in the finance and insurance sectors.