Revealed: UAE’s strongest banks, Dubai’s Emirates NBD leads

Five UAE banks were listed as the strongest among 25 lenders across the Middle East region, led by Dubai’s largest bank Emirate NBD.

Ranked fourth in the region, Emirates NBD is followed is First Abu Dhabi Bank (5), Abu Dhabi Commercial Bank (7), Dubai Islamic Bank (14) and Mashreq Bank (23), according to an annual report released by The Banker.

The ranking is based on the Tier 1 capital of the lenders.

“Emirates NBD, which remains the region’s fourth-largest bank, is now the top-ranked UAE lender, thanks to an 11.9 per cent rise in Tier 1 capital,” it said.

The UAE and regional banks reported stellar performance last year on the back of post-pandemic recovery that began in 2021, benefitting from windfalls from higher oil prices while inflation remained at lower levels, said the study.

According to a study by Alvarez & Marsal, the combined net profit of the UAE’s 10 largest banks jumped 35 per cent to Dh18.3 billion quarter-on-quarter in the first quarter of 2023 on the back of “enhanced cost efficiencies and lower impairment charges.”

Globally, Emirates NBD and First Abu Dhabi Bank are among the 100 strongest banks, ranked 85 and 90, respectively. While Abu Dhabi Commercial Bank, and Dubai Islamic Bank Mashreq were ranked 130, 169 and 256, respectively, in the list of strongest banks.

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