Published: 2026-08-17
UAE banks closed 2025 with a record net profit of AED 90.8 billion, an increase of 11.7% year on year, while total banking assets grew 17.1% to AED 5.3 trillion, according to the Financial Stability Report 2025 released by the Central Bank of the UAE (CBUAE) on 2026-08-17. Asset quality improved sharply: the share of non-performing loans fell from 4.7% to 3.3%. Mortgage lending jumped 23.9%, deposits rose 16.1%, and the instant payment platform Aani processed 183% more transactions than a year earlier. For companies that operate in the UAE or plan to open a corporate account here, the report describes a banking system that is profitable, liquid and actively competing for business clients.
A record year in numbers
The Financial Stability Report is the CBUAE’s annual assessment of the health of the country’s financial system. The 2025 edition shows the strongest set of results the sector has published to date.
| Indicator | 2025 | Change |
|---|---|---|
| Net profit | AED 90.8 billion | +11.7% year on year |
| Total assets | AED 5.3 trillion | +17.1% |
| Total operating income | growth | +12.5% |
| Loan portfolio | growth | +17.8% |
| Total deposits | growth | +16.1% |
| Non-performing loans | 3.3% | down from 4.7% in 2024 |
| Capital adequacy ratio | 17.0% | well above the regulatory minimum |
| Common Equity Tier 1 | 14.4% | core capital buffer |
Behind the headline figures is a simple driver: volume. The UAE economy keeps attracting new companies and residents, and banks are converting that inflow into loans, deposits and fee income at a pace few markets can match.
Cleaner balance sheets than at any point since the pandemic
The quality of bank assets improved faster than profits. The non-performing loan ratio dropped to 3.3% in 2025, down from 4.7% in 2024 and 8.2% at the peak of the pandemic in 2020. In other words, the share of bad loans has been cut by more than half in five years while the loan book itself expanded 17.8% in a single year.
Efficiency improved as well: the sector’s cost-to-income ratio fell from 31.5% to 30.5%. The net interest margin narrowed from 2.5% to 2.3% as global interest rates eased, which makes the profit record more notable, banks earned more by doing more business, not by charging wider spreads.
Lending: mortgages up 23.9%, corporate deposits up 22.8%
Credit growth in 2025 was broad-based. The loan portfolio expanded 17.8%, driven mainly by retail customers and private corporates. Deposits rose 16.1%, with retail deposits up 13.8% and private corporate deposits up 22.8%, a sign that companies are holding more working capital inside the UAE banking system. The loan-to-deposit ratio stood at 77.7%, which leaves banks with substantial room to keep lending.
The single fastest-growing product was residential mortgage lending, up 23.9% for the year on the back of the UAE property market. The momentum has carried into 2026: our review of UAE bank lending data for June 2026 shows credit growth still running at double-digit annual rates.
Aani: instant payments grew 183%
The report also highlights the CBUAE’s payments agenda. Aani, the national instant payment platform, increased transaction volumes by 183% in 2025 and now serves more than 11.7 million enrolled customers. For small and medium businesses this matters in practice: instant AED transfers between local accounts are becoming the default rail for paying suppliers, staff reimbursements and customer refunds, replacing slower legacy transfers.
Stress tests: the system holds even in a severe scenario
The CBUAE ran its annual supervisory stress test on the sector. Under the adverse scenario, the aggregate Common Equity Tier 1 ratio fell to a low of 11.1%, a decline of roughly 300 basis points, yet remained above minimum regulatory requirements throughout. Liquidity buffers were equally comfortable: banks held a surplus of AED 462 billion against 30-day outflows and AED 371 billion against 60-day outflows.
CBUAE Governor Khaled Mohamed Balama said the central bank will continue to strengthen its supervisory frameworks, signalling that record results will not translate into looser oversight.
What this means for your business
A record-profit, low-NPL banking system changes the practical calculus for founders and CFOs working with the UAE:
- Account opening climate. Banks flush with capital compete harder for corporate clients, especially companies with real activity, an office and a clear business model. Compliance checks remain strict, so the quality of your file still decides the timeline. See our guide to corporate bank account opening in the UAE.
- Access to financing. With lending up 17.8% and a loan-to-deposit ratio of 77.7%, banks have both the appetite and the capacity to finance trade, equipment and property purchases by established companies.
- Counterparty safety. An NPL ratio of 3.3%, capital adequacy of 17.0% and stress-tested buffers reduce the risk of holding significant working capital in UAE banks, a frequent question from international groups moving treasury functions to Dubai.
- Payments infrastructure. Aani’s growth means faster settlement cycles for local suppliers and customers, worth building into your cash-flow planning.
How Atlant Capital can help
Atlant Capital sets up companies in the UAE and takes them all the way to a working bank account. We prepare the corporate structure and documents so that the bank sees a clean, fundable file from day one:
- Choice of jurisdiction and licence under your actual business model as part of company setup in the UAE;
- Preparation of the bank file: business plan, source of funds, substance evidence;
- Submission to banks that fit your profile and turnover, and support through compliance questions until the account is active;
- Residence visas for shareholders and key staff, so signatories can pass in-person verification quickly.
The 2025 numbers confirm what we see in daily practice: the UAE banking system has capital, liquidity and a growing appetite for good clients. For a business that prepares its documents properly, this is one of the best moments in years to enter the market.
FAQ
How much profit did UAE banks make in 2025?
UAE banks earned a record net profit of AED 90.8 billion in 2025, up 11.7% from the previous year, according to the Central Bank of the UAE Financial Stability Report 2025 published on 2026-08-17. Total banking assets grew 17.1% to AED 5.3 trillion over the same period.
How safe are UAE banks in 2026?
By the CBUAE’s own metrics, the system is in its strongest shape in years: non-performing loans fell to 3.3% from 4.7%, the capital adequacy ratio stands at 17.0% and Common Equity Tier 1 at 14.4%. In the regulator’s adverse stress scenario the sector’s CET1 ratio bottomed out at 11.1%, still above minimum requirements, and banks hold a 30-day liquidity surplus of AED 462 billion.
Is it easier to open a corporate bank account in the UAE now?
Strong profitability and deposit growth make banks more willing to onboard corporate clients, but compliance standards have not been relaxed. A company with real activity, an office and clear source-of-funds documentation can typically open an account within two to six weeks of incorporation, while incomplete files still face delays or rejections regardless of the market cycle.
What is the Aani payment platform?
Aani is the UAE’s national instant payment platform, operated under the Central Bank of the UAE. It processes AED transfers between local accounts in seconds around the clock. In 2025 its transaction volumes grew 183% and the platform passed 11.7 million enrolled customers, making it the default rail for everyday business and consumer payments.
