Emirates NBD: Q2 net profit up only 1.8% YoY, but annual ROE stays double-digit

25 августа Emirates NBD раскрыла результаты за второй квартал 2026 года: чистая прибыль составила 6 416 млн AED, что лишь на 1,8% выше, чем годом ранее. Процентные доходы выросли на 12,1% до 12 951 млн AED, поддерживая маржу. При текущей цене акции выглядят привлекательно: P/E за последние 12 месяцев — 7,86, ROE — 16,9%, а дивидендная доходность — 3,3%.

Key takeaways

— Q2 net profit rose only 1.8% YoY, weighed by higher provisions and operating costs

— Net interest income grew 12.1% on loan book expansion and higher rates

— ROE remains high at 16.9% for the trailing twelve months

— Dividend yield of 3.3% is below historical levels, but payouts continue

— Portal's model sees +13% upside for the stock

Attractiveness

Key figures, AED bn

Q2 net profit rose only 1.8% YoY, weighed by higher provisions and operating costs

In Q2 2026, Emirates NBD's net profit reached 6,416 million AED versus 6,301 million AED a year earlier. Growth slowed to 1.8%, compared with double-digit rates in previous quarters, indicating pressure on profitability.

Key drivers were higher provisions and operating costs, which were not offset by growth in net interest income. Still, quarterly profit remained stable: Q2 2026 was nearly flat versus Q1 2026 (6,402 million AED).

Net interest income grew 12.1% on loan book expansion and higher rates

Net interest income in Q2 2026 grew 12.1% YoY to 12,951 million AED. This continues a solid trend: Q1 growth was 9.6%, and Q4 2025 saw 23.3%.

Support came from loan growth and higher interest rates in the UAE. Over the trailing twelve months, net interest income reached 50,400 million AED, confirming the bank's ability to expand its core business.

ROE remains high at 16.9% for the trailing twelve months

For the trailing twelve months, Emirates NBD's net profit was 24,284 million AED, translating into an ROE of 16.9%. This is a strong figure for the banking sector, reflecting efficient use of capital.

The twelve-month profit includes quarters with varying dynamics: from 3,983 million AED in Q4 2024 to 6,421 million AED in Q3 2025. Despite the slowdown in Q2 2026, annual profitability remains attractive.

Dividend yield of 3.3% is below historical levels, but payouts continue

Over the trailing twelve months, Emirates NBD paid dividends, providing a yield of 3.3% at the current price. This is lower than in previous years when yields were higher, reflecting rising share prices.

The bank maintains a dividend policy aimed at regular payouts. Future dividends will depend on profitability and board decisions; at current earnings and a payout ratio of around 30–40%, payments remain sustainable.

Portal's model sees +13% upside for the stock

Based on our model, which compares annual earnings to market capitalization, Emirates NBD shares have potential upside of +13% to fair value. This implies the current price does not fully reflect the bank's profitability.

With a trailing P/E of 7.86 and ROE of 16.9%, the shares trade at a discount to their historical valuation. If the bank maintains current profitability and continues paying dividends, an upward re-rating seems justified.

Valuation on the latest reported figures

Bottom line

Emirates NBD continues to show solid net interest income growth (+12.1% in Q2) and high ROE (16.9% over 12 months). However, net profit is growing slowly (+1.8%), reflecting higher provisions and costs. The shares trade at a P/E of 7.86 and offer a dividend yield of 3.3%, making them attractive for long-term investors. Our model sees +13% upside, supporting an 'attractive' verdict.