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UAE bank assets reach Dh5.3 trillion as domestic lending strengthens
The banking system maintained strong profitability, with net profits increasing by 11.7 per cent to Dh90.8 billion in 2025, supported by growth in total operating income, Central Bank report shows
- PUBLISHED: Mon 17 Aug 2026, 1:28 PM
The UAE's banking system's total assets reached Dh5.3 trillion by the end of last year, up 17.1 per cent, while loan portfolio increased by 17.8 per cent, the country's central bank reported.
In its Financial Stability Report 2025, the Central Bank of the UAE (CBUAE) said domestic lending, particularly across the retail and private corporate segments, led to these strong results.
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Moreover, the banking system maintained strong profitability, with net profits increasing by 11.7 per cent to Dh90.8 billion in 2025, supported by growth in total operating income.
CBUAE’s continued deposit growth also allowed it to maintain strong liquidity levels.
Asset quality indicators continued to improve, with the non-performing loan (NPL) ratio declining to 3.3 per cent in 2025, compared to 4.7 per cent in 2024 and 8.2 per cent in 2020. The UAE banking system also maintained adequate capitalisation, with the Capital Adequacy Ratio (CAR) at 17.0 per cent at the end of 2025, remaining well above minimum regulatory requirements.
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The combined market capitalisation for the UAE’ main markets, ADX and DFM, exceeded 4.1 trillion, supported by new listings, higher trading activity, robust debt issuance, and rising volumes of green bonds and sukuk.
The results of the 2025 supervisory stress tests confirmed the banking sector’s resilience to severe economic and financial shocks. Under the adverse scenario, the average Common Equity Tier 1 (CET1) capital ratio declined from 14.1 per cent to 11.1 per cent at its lowest point during the stress-test horizon, while remaining above the minimum regulatory requirements.
Other segments of the financial sector also remained resilient, such as insurance and Islamic banking, the report showed. There has also been continued development of the UAE’s financial infrastructure and payment systems under the Financial Infrastructure Transformation (FIT) Programme, contributing to the efficiency and resilience of the financial system and supporting digital transformation.
The report highlighted developments in payment systems, including Aani, the Instant Payments Platform, and Jaywan, the UAE’s national card payment scheme, alongside developments in cross-border payments, further enhancing the efficiency and resilience of the UAE’s financial infrastructure.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.