This week witnessed earnings releases from major banks. Though overall top and bottom lines grew, banks did show increases in impairment allowances. During the pandemic, the central bank let banks delay downgrading the ratings of affected loans. This support is available again now. But when the support ends, banks will review which loans can be repaid. Some repayments may be unaffordable due to higher business costs and pressure on margins, leading to loan downgrades. So, set aside more provisions as they expect more downgrades when central bank support is withdrawn. However, it must be noted that, initially, analysts projected net income to fall by about 5-10% due to the increase in impairments; however, the actual performance presented a very robust picture. (Bloomberg)
DFM:
The DFM General Index pulled back slightly with a 2.23% decline for the week ending 24th April 2026, closing the week at AED 5,854.20. The small drop has come after two consecutive weeks of gains, with the index now recovering almost 12% from the lows touched in March.
Although the index was supported by Gulf Navigation Holding’s 9.24% jump and Emirates Integrated Telecommunication’s 2.10% rise during the week, no other major names ended higher. Major names that were laggards for the week included Salik Co, which fell 5.62%; Dubai Islamic Bank, which fell 4.40%; Air Arabia, which dipped 3.89%; and Emaar Properties, which fell 3.43%. (Source: Bloomberg)
In terms of sectors, Communication Services was the only sector in green this week with a 2.10% rise. On the other hand, the Consumer Staples sector fell the most with a 3.97% decline, followed by the Real Estate sector, which fell 3.42%, and the Consumer Discretionary sector, which fell by 2.98%. (Source: DFM Reports)
From an earnings front, Emirates NBD, Dubai’s largest lender, released their quarterly earnings this week. The bank’s revenues increased 21% YoY to AED 14.4 billion, operating profit before impairment charges grew 24% YoY to AED 10.2 billion, while net income grew 3% YoY to AED 6.4 billion. Net Impairment allowances rose to AED 800 Mn compared to AED -500 Mn last year for the same period, reflecting prudent provisioning. Such strong numbers reflect the resilience of the UAE banking sector, underpinning the disciplined cost management since the rise in geopolitical tensions at the start of March.
Emirates Integrated Telecom (DU) was another big name that reported earnings during the week. In its latest Q1 26 earnings, Du’s mobile subscriber base grew 6.1% YOY to 9.7 Mn, driven by steady growth across both prepaid & postpaid segments. Jan and Feb witnessed strong momentum, while March witnessed a slowdown. In the quarter, the company reported 5.5% YoY increase in net profit to AED 834 million, higher than the analyst estimate of AED 760 Mn.
For the next week, major companies like Dubai Islamic Bank, Mashreqbank, Tecom Group, and Dubai Financial Market are expected to release earnings. (Source: Bloomberg)
Technically, on the daily chart, the DFMGI found resistance near the AED 5994.75 level from the 100-EMA on Monday, falling thereafter. Prices later found support from Friday’s lows near the 21-day EMA level of AED 5775. This level also coincided with a support zone formed by connecting the lows of late September and November last year and the highs of early April this year. A break below the 21-day EMA may intensify selling pressure, while a break above the 200-day EMA around AED 5907 could signal renewed buying momentum.
ADX:
The ADX General Index dipped about 1.33% by the end of the week, closing at AED 9,788, after briefly retesting the breakdown at the AED 10,000 mark.
The market was supported to some extent by strong performance from Agility Global and NMDC Energy, which rose 10.30% and 3.24%, respectively. On the flip side, Abu Dhabi Islamic Bank, Abu Dhabi National Energy Co., and Two Point Zero Group were the major laggards, with declines of 6.12%, 4.88%, and 4.13%, respectively.
From a sectoral standpoint, the Telecommunication Sector is the only one that closed on a positive front, rising by a marginal 0.02%. The laggards were Consumer Staples (-5.15%), Utilities (-4.98%) and Technology Sectors (-4.10%). Â (Source: ADX Report Centre)
Looking at earnings from ADCB and FAB were the major releases this week, while next week’s earnings are expected from Emirates Telecom Group, Abu Dhabi Islamic Bank, Borogue, Two Point Zero Group, Aldar Properties, NMDC, Fertiglobe and Alef Education. (Source: Bloomberg)
ADCB reported net income for the first quarter that beat the average analyst estimate. The net income rose 37% YoY to AED 3.36 billion. The Operating Income also showed a similar trend, rising 18% YoY to AED 5.93 billion. Total Asset base rose 19% YoY to AED 808.86 billion. It must be noted that the private banking and wealth management client base increased by 7% in the quarter, and assets under management within investment and advisory solutions rose by 7% as well. The main point to note here is that the impairments declined by 1.2% YoY to AED 638 billion. Looking at FAB, the Operating Income rose by 5.9% YoY to AED 9.34 billion, while the total assets rose 14% YoY to AED 1.49 trillion. It must be noted that deposits rose 3.8% YoY to AED 871 billion. Here, however, the impairments rose 52% YoY to AED 1.1 billion. (Source: Bloomberg)
From a technical standpoint, the index has support at the 200- and 100-Week SMAs at AED 9,679 and AED 9,669, respectively. Hence, a recovery is widely expected from a technical stance.
