Invest Bank H1 Profit Rises 61% to AED80.5 Million

Invest Bank has reported a strong first half of 2026, with profit before tax rising 61% year on year to AED80.5 million as higher lending volumes, stronger interest income and growth across retail and wholesale banking supported the lender’s turnaround.

The bank also recorded a sharp acceleration in the second quarter, generating pre-tax profit of AED58 million, equivalent to around $15.8 million. That represented a 159% increase from the first quarter and highlighted the strengthening earnings momentum heading into the second half of the year.

The results point to broad-based growth across Invest Bank’s balance sheet, with assets, customer deposits and loans all posting double-digit increases.

Total Assets Reach AED16.1 Billion

Invest Bank’s total assets increased to AED16.1 billion at the end of June 2026.

That represented growth of 27% compared with the same period last year and 14% since the beginning of 2026.

The expansion puts the bank closer to what management described as its highest-ever balance sheet since inception.

Asset growth was supported by a substantial increase in lending and deposits, reflecting higher business volumes across several customer segments.

Customer Deposits Rise 30%

Customer deposits reached AED13.3 billion during the first half.

That marked an increase of 30% year on year and 17% from the end of 2025.

Strong deposit growth is important for banks because it provides a relatively stable funding base that can support lending while helping maintain liquidity.

Invest Bank said the expansion reflected continued confidence among customers as the lender develops its retail franchise while maintaining its established wholesale banking business.

Loans and Advances Jump Nearly 50%

Net loans and advances increased to AED8.8 billion, representing a 49% rise from the same period last year.

The loan portfolio was also 22% higher than at the end of 2025.

This rapid lending growth was spread across both retail and wholesale banking, demonstrating that the bank’s expansion was not dependent on one customer segment.

The increase in lending volumes contributed significantly to higher net interest income during the period.

Net Interest Income More Than Doubles

One of Invest Bank’s strongest financial indicators was the growth in net interest income.

Net interest income rose 111% year on year to AED164.1 million.

The increase reflects both higher lending volumes and improved returns on the bank’s interest-earning assets.

Net interest margin also strengthened to 2.2%, compared with 1.3% during the corresponding period last year.

For banks, net interest margin measures the difference between interest earned on loans and investments and the interest paid to depositors and other funding sources.

The improvement suggests Invest Bank generated more income from each unit of interest-bearing assets compared with the previous year.

Non-Interest Income Climbs 40%

The bank also generated stronger revenue outside its traditional lending activities.

Non-interest income increased 40% year on year to AED94.7 million.

Invest Bank attributed the improvement to growth in its core businesses, higher balance-sheet volumes and stronger foreign exchange income.

Diversification of revenue is important because it reduces dependence on interest income and can make earnings more resilient when interest-rate conditions change.

Retail Loan Book Crosses AED1 Billion

Retail banking emerged as one of the strongest areas of growth.

Invest Bank’s retail loan portfolio exceeded AED1 billion for the first time, closing the period at AED1.1 billion.

That represented growth of 73% since the beginning of the year.

The milestone reflects the bank’s strategy of broadening its customer base beyond its traditional wholesale banking franchise.

Retail banking can provide banks with a more diversified source of loans, deposits and fee income across individual customers rather than relying predominantly on corporate clients.

Retail CASA Ratio Improves

Invest Bank also reported stronger current and savings account balances within its retail business.

Retail CASA balances represented approximately 46% of retail deposits at the end of June, compared with 35% at the end of 2025.

CASA refers to current accounts and savings accounts, which typically provide banks with a lower-cost source of funding than fixed-term deposits.

A higher CASA ratio can therefore support margins and improve overall funding efficiency.

The bank said the increase demonstrated customer confidence in its expanding digital capabilities.

Wholesale Banking Continues to Expand

While retail banking is growing rapidly, wholesale banking remains a major component of Invest Bank’s operations.

Core wholesale banking loans increased by AED1.2 billion during the first half, equivalent to growth of approximately 18% year to date.

Wholesale deposits increased by AED1.1 billion, representing 13% growth from the beginning of the year.

The gains show the bank is expanding its newer retail operations while continuing to grow its established corporate and institutional customer base.

Second-Quarter Profit Accelerates

The second-quarter result was particularly strong.

Profit before tax reached AED58 million, up 159% from the first quarter.

Based on the first-half total of AED80.5 million, this means the first quarter contributed approximately AED22.5 million in pre-tax earnings.

The acceleration suggests Invest Bank entered the middle of the year with improving operating momentum.

Continued growth in interest income and loan volumes will be important in determining whether that trajectory can be maintained during the second half.

Invest Bank H1 2026 at a Glance

Metric	H1 2026	Change
Profit before tax	AED80.5 million	+61% YoY
Q2 profit before tax	AED58 million	+159% QoQ
Total assets	AED16.1 billion	+27% YoY
Customer deposits	AED13.3 billion	+30% YoY
Net loans and advances	AED8.8 billion	+49% YoY
Net interest income	AED164.1 million	+111% YoY
Net interest margin	2.2%	Up from 1.3%
Non-interest income	AED94.7 million	+40% YoY
Retail loan book	AED1.1 billion	+73% YTD

Transformation Strategy Gains Momentum

Invest Bank Chief Executive Officer Edris Al Rafi said the performance demonstrated progress in the bank’s transformation strategy.

Management pointed to stronger profitability, a growing balance sheet and improving asset quality while maintaining capital and liquidity discipline.

The bank has also been working to strengthen its market position through a refreshed identity and broader digital capabilities.

According to management, those developments have helped support confidence among shareholders, customers and regulators.

Fitch Rating Adds Another Milestone

Invest Bank also highlighted receiving its first investment-grade rating from Fitch as an important milestone.

An investment-grade rating can strengthen a bank’s standing with institutional investors and lenders because it signals that a recognized ratings agency considers its credit profile relatively strong.

Such ratings can also influence funding costs and access to capital markets.

For Invest Bank, the rating comes as the lender seeks to demonstrate that its growth strategy is being accompanied by stronger financial fundamentals.

What the Results Mean for Invest Bank

The first-half performance shows that Invest Bank is expanding rapidly.

The strongest signals include:

More than doubling net interest income
Nearly 50% growth in loans
30% growth in customer deposits
Improving net interest margins
Rapid retail banking expansion
Continued wholesale banking growth

The challenge will be ensuring that rapid lending growth does not come at the expense of credit quality.

As banks expand loan books quickly, asset quality, provisioning and capital adequacy become increasingly important measures to watch.

UAE Banking Sector Remains Competitive

Invest Bank’s growth comes within a highly competitive UAE banking market where lenders are investing heavily in digital services, customer acquisition and new products.

Larger banks benefit from scale, extensive branch networks and established corporate relationships.

Smaller and mid-sized banks therefore often compete by focusing on specialized services, faster digital experiences and specific customer segments.

Invest Bank’s growing retail business suggests it is seeking a broader role within the domestic banking market while preserving its traditional wholesale franchise.

Outlook for the Second Half

The bank enters the second half of 2026 with stronger revenue momentum and a considerably larger balance sheet than a year earlier.

Continued growth will depend on several factors, including loan demand, interest-rate conditions, credit quality and the ability to maintain deposit growth.

If net interest margins remain strong and operating volumes continue rising, Invest Bank could maintain earnings momentum.

However, rapid balance-sheet expansion will require continued discipline around risk management and capital.

Final Thoughts

Invest Bank delivered a strong first half of 2026, with profit before tax climbing 61% to AED80.5 million and second-quarter earnings accelerating sharply to AED58 million.

The results were supported by substantial growth in deposits, loans and net interest income, while the bank’s net interest margin improved to 2.2%.

Retail banking emerged as a particularly fast-growing business, with the loan portfolio crossing AED1 billion for the first time, while wholesale banking also continued expanding.

With total assets now at AED16.1 billion, Invest Bank is approaching record balance-sheet levels and entering the second half with stronger operating momentum.

The key question for the remainder of the year will be whether the bank can sustain that growth while maintaining asset quality, liquidity and capital discipline.