2Q26: Lower provisioning helps drive beat

Research evidence excerpt

2Q26: Lower provisioning helps drive beat

Update

July 23, 2026 05:57 AM GMT

Morgan Stanley & Co. International plc (DIFC Branch)+MEmirates NBD | Europe Shabbir Malik

Equity Analyst

2Q26: Lower provisioning helps Shabbir.Malik@morganstanley.com +971 4 709-7057

Emirates NBD (ENBD.DU, EMIRATES DB)

EEMEA - Banks & Fintech | United Arab Emiratesdrive beat

Stock Rating Equal-weight

Industry View In-Line

Price target AED 34.00

AlphaSignals Earnings Reaction Shr price, close (Jul 22, 2026) AED 29.30

52-Week Range AED 37.40- 24.00

Unchanged Modest upside Modest revision higher Mkt cap, curr (mn) AED 184,903

Impact to our thesis Financial results versus consensus Direction of next 12-month Net debt (12/26e) (mn)* AED 9,129

consensus EPS

EV, curr (mn)* AED 185,140

Source: Company data, Morgan Stanley Research

* = GAAP or approximated based on GAAP

2Q26 profit beats estimates: Emirates NBD's (ENBD) 2Q26 profit came in at

AED6.40bn (EPS: AED1.00), stable QoQ and +2% YoY. Earnings were 26% ahead of

MS estimates, on higher Non-II, lower provisioning and hyper-inflation charge. The

group's earnings were 9% ahead of consensus on higher NII and lower provisioning.

The bank's ROTE was 18.6% in 2Q26 vs. 19.4% in the preceding quarter. The bank's

1H26 profit was AED12.8bn (EPS: AED1.99), +3% YoY, as higher revenue offset

increase in provisioning. Management left guidance for 2026 unchanged. Results call

will take place at 2pm UAE.

NII up despite NIM compression, resilient fees: The group's revenue declined 6%

QoQ, with NII up 1% and Non-II down 18%. Its NIM was down c20bps sequentially to

3.16%. Management left group guidance unchanged at 3.10-3.30%. ENBD (ex Deniz)

NIM was down 17bps QoQ to 2.53%; Denizbank NIM was down 25bps to 6.87%. Fee