Emirates NBD Egypt’s sector performance evolves in H1 2026: retail returns to profit, corporates lead

Emirates NBD Egypt recorded a notable shift in sector performance during H1 2026, with retail banking returning to profitability and corporates retaining its position as the largest contributor to operating results among the bank’s core business sectors, according to First Bank’s analysis of its financial statements.

The bank’s aggregate sector operating results, before expenses and taxes, rose 15.5 per cent to approximately EGP 5.96bn in H1 2026, from EGP 5.16bn in the corresponding period of 2025, an increase of EGP 798.16mn.

Among the bank’s core business sectors, corporates accounted for the largest share of aggregate operating results at 31.1 per cent, followed by investments at 20.7 per cent and small and medium-sized enterprises (SMEs) at 6.5 per cent. Retail banking contributed 4.6 per cent after returning to profitability during the period.

The investment sector recorded the largest absolute increase in operating results, adding EGP 475.34mn, followed by retail banking, which improved by EGP 437.77mn, and SMEs, which contributed an additional EGP 101.87mn.

Retail stages a turnaround, improving by EGP 437.8mn

Emirates NBD Egypt’s retail banking sector recorded a significant turnaround in H1 2026, generating a positive operating result of approximately EGP 272.21mn, compared with a negative result of EGP 165.56mn in the corresponding period of 2025.

The sector achieved an overall improvement of EGP 437.77mn, supported by revenue growth that outpaced the increase in operating expenses.

Retail banking revenue surged 58.5 per cent to EGP 1.81bn in H1 2026, from EGP 1.14bn a year earlier, representing an increase of approximately EGP 669.3mn.

Meanwhile, sector expenses rose 17.7 per cent to approximately EGP 1.54bn, compared with EGP 1.31bn in the corresponding period, an increase of EGP 231.53mn.

Strong revenue growth, alongside a more moderate increase in expenses, enabled the sector to generate a positive operating result, reversing the position recorded in H1 2025, when expenses exceeded revenue.

This improvement was reflected in the expense-to-revenue ratio, which stood at approximately 85 per cent in H1 2026, compared with 114.5 per cent a year earlier, indicating improved operating efficiency based on the published sector data.

Investments lead sectors in absolute operating result growth

Emirates NBD Egypt’s investment sector delivered strong growth in H1 2026, recording the largest absolute increase in operating results among the bank’s business sectors.

The sector’s operating result rose 62.9 per cent to EGP 1.23bn, from EGP 755.68mn in H1 2025, representing an increase of EGP 475.34mn.

This performance coincided with sector revenue of approximately EGP 1.42bn during the first six months of the year, against expenses of EGP 184.74mn, leaving the operating result equivalent to around 87 per cent of revenue.

The increase strengthened the investment sector’s contribution to the bank’s aggregate operating results, lifting its share to approximately 20.7 per cent in H1 2026, from 14.6 per cent in the corresponding period of 2025.

These figures indicate a growing contribution from investment activities to the bank’s operating performance, while the sustainability of this growth will depend on developments in investment returns and associated costs in the coming periods.

SME operating results grow 35.4 per cent

Emirates NBD Egypt’s SME sector continued to strengthen its operating performance during H1 2026, recording growth of 35.4 per cent, with its operating result rising to approximately EGP 389.67mn, from EGP 287.79mn in the corresponding period of 2025.

The sector generated an increase of approximately EGP 101.87mn, supported by a 23.8 per cent rise in revenue to EGP 600.16mn, compared with EGP 484.64mn in H1 2025.

Meanwhile, expenses increased by 6.9 per cent to approximately EGP 210.49mn, from EGP 196.85mn in the comparative period.

The widening gap between revenue and expense growth strengthened the sectort’s operating result, lifting its operating result-to-revenue ratio to approximately 64.9 per cent in H1 2026, compared with 59.4 per cent a year earlier.

The SME sector’s contribution to the bank’s aggregate operating results also increased to approximately 6.5 per cent, from 5.6 per cent in the corresponding period.

Corporates retain the largest share among core business sectors

Emirates NBD Egypt’s corporate banking sector maintained its position as one of the bank’s largest contributors to operating results during H1 2026, recording an operating result of approximately EGP 1.86bn, compared with EGP 1.95bn in the corresponding period of 2025.

This came alongside a 29.1 per cent increase in sector revenue to approximately EGP 3.02bn in H1 2026, from EGP 2.34bn a year earlier, representing an increase of EGP 678.93mn.

sector expenses reached approximately EGP 1.16bn in H1 2026, compared with EGP 391.21mn in the corresponding period of 2025, an increase of EGP 768.67mn.

The increase in expenses therefore exceeded revenue growth in absolute terms by approximately EGP 89.74mn, accounting for the difference in the sector’s operating results between the two periods.

Corporate banking accounted for approximately 31.1 per cent of the bank’s aggregate operating results in H1 2026, compared with 37.7 per cent a year earlier, remaining a major driver of operating performance.

Investments and retail increase their contributions to operating results

A comparison of Emirates NBD Egypt’s sector results for H1 2025 and H1 2026 reveals a shift in the relative contributions of its business sectors, driven by differences in their operating result growth rates.

The investment sector’s share of aggregate operating results increased from approximately 14.6 per cent to 20.7 per cent, while retail banking moved from a negative operating result to a positive contribution of approximately 4.6 per cent in H1 2026.

The SME sector also increased its contribution from approximately 5.6 per cent to 6.5 per cent, while corporate banking accounted for 31.1 per cent, compared with 37.7 per cent in the corresponding period of 2025.

Meanwhile, the other activities sector accounted for the largest share of aggregate operating results at 37.1 per cent, compared with 45.3 per cent in H1 2025.

These figures indicate that growth in the operating results of the investment, retail banking and SME sectors contributed to a redistribution of relative weights across the bank’s business sectors, while other activities and corporate banking continued to account for the largest combined share of aggregate operating results.

Operating result growth accompanies higher H1 profits

The improvement in Emirates NBD Egypt’s sector operating results coincided with a 9.6 per cent increase in net profit in H1 2026, reaching approximately EGP 3.31bn, compared with EGP 3.02bn in the corresponding period of 2025.

Profit before tax also increased by 16.9 per cent to approximately EGP 5.13bn during the first half of the year, from EGP 4.39bn in H1 2025.

Net profit grew at a lower rate than profit before tax, alongside an increase in income tax expenses to approximately EGP 1.82bn, from EGP 1.37bn in the comparative period. Credit impairment charges also rose to approximately EGP 831.03mn, compared with EGP 773.46mn.

These results indicate that the improvement in sector operating performance contributed positively to profit before tax, while net profit growth was also influenced by impairment provisions and tax expenses.

Overall, Emirates NBD Egypt’s H1 2026 results reveal a shift in the composition of its operating results, with retail returning to profitability and the investment and SME sectors delivering strong growth, while corporates remained among the bank’s largest contributors.

Continued improvement across these sectors is expected to support the bank’s capacity to grow earnings in the coming periods, particularly through more diversified revenue sources and greater operating efficiency.

Future performance will nevertheless remain dependent on developments in revenue, expenses and the risks associated with each business sector.