Gulf banks reported higher nine-month profits, but headline growth masked differences in underlying performance. Lower impairment charges boosted ADCB and a disposal gain lifted RAKBANK, while higher impairment and hyperinflation charges restrained Emirates NBD. Al Rajhi’s financing and investment income supported earnings growth, as Saudi National Bank faced a shift towards interest-bearing deposits and narrower quarterly margins.

Elsewhere, Mastercard launched its Gateway service in Syria, giving banks and merchants infrastructure to process international payments in stores and online. The rollout builds on the restoration of international card transactions, extending the country’s reconnection to global payment networks.

Read more on the week's key developments:

1. Emirates NBD’s income growth outpaces profit as lending and international expansion accelerate

Emirates NBD’s operating income rose 15% year-on-year to AED 42.2 billion ($11.49 billion) for the first nine months of 2026, while higher impairment and hyperinflation charges limited pre-tax profit growth to 4%, taking it to AED 24.3 billion ($6.62 billion). In results announced on 21 October, net interest income grew 14% to AED 29.4 billion ($8 billion) and non-funded income rose 18% to AED 12.8 billion ($3.49 billion). Gross loans expanded 27% year-to-date to AED 833 billion ($226.82 billion), including 18% growth excluding India’s RBL Bank, while deposits increased 19% to AED 935 billion ($254.60 billion).

Impairment allowances reached AED 2.1 billion ($572 million), mainly associated with DenizBank, while the cost of risk stood at 37 basis points. RBL Bank’s consolidation contributed to reported balance-sheet expansion, alongside strong growth in the existing franchise. Management raised full-year organic loan growth guidance to the low-20% range.

2. Saudi National Bank’s funding mix shifts as quarterly margins narrow

Saudi National Bank announced on 21 October that net profit attributable to shareholders reached SAR 19.5 billion ($5.2 billion) for the first nine months of 2026, up 5% year-on-year. Operating income rose 5% to SAR 30.6 billion ($8.16 billion), with net special commission income increasing 8% while fees and other income declined 6%. Net financing grew 4% year-to-date to SAR 758 billion ($202.13 billion) and deposits increased 5% to SAR 670 billion ($178.67 billion). The cost-to-income ratio stood at 25.1%.

Deposit growth was driven by a SAR 56 billion ($14.93 billion) increase in time deposits and other balances, offset by a SAR 20 billion ($5.33 billion) reduction in current and savings accounts. This shifted the funding mix towards interest-bearing deposits, while the bank reported a nine-basis-point quarterly decline in its net special commission margin to 2.93%. Although nine-month net impairment charges fell 97% to SAR 2.6 million ($693,000), third-quarter charges rose 40% year-on-year.

3. Gulf bank shares swing as conflict fears give way to diplomatic hopes

Gulf equities fell sharply during the week as renewed Houthi attacks on Saudi Arabia and escalating regional tensions raised concerns about wider conflict and energy disruption. Saudi Arabia’s benchmark index declined 2.3% on 22 October, with Saudi National Bank shares down 5.1%. Dubai and Abu Dhabi also lost 0.7% each that day; their indices finished the week down 2.3% and 2.2%, respectively.

Markets rebounded on 26 October amid expectations of talks in Tehran involving Iranian, Saudi, Turkish and Pakistani officials. Saudi Arabia’s benchmark gained 3.4%, its largest one-day rise in more than 13 months, while Qatar advanced 2.8%, including a 3.9% increase in Qatar National Bank shares. The rapid reversal shows how regional risk perceptions influenced bank valuations even as lenders reported higher earnings.

4. Al Rajhi Bank’s financing and investment income supports 13% profit growth

Al Rajhi Bank’s net financing and investment income increased 17% year-on-year to SAR 25.33 billion ($6.75 billion), supporting a 13% rise in net profit to SAR 20.87 billion ($5.57 billion) for the first nine months of 2026. In results announced on 21 October, operating income rose 13% to SAR 32.53 billion ($8.67 billion), supported by financing and investment income and banking fees. Total assets reached SAR 1.08 trillion ($288 billion), while financing stood at SAR 775 billion ($206.67 billion). Return on equity reached 23.3%.

Separately, in September, Al Rajhi Bank completed a $600 million social Tier 2 sukuk issuance, carrying a 6.232% annual return and a 10.5-year maturity. The subordinated instrument supports the bank’s regulatory capital base, providing additional loss-absorbing capacity beyond its core capital.

5. Mastercard launches Gateway in Syria to expand international digital payment acceptance

Mastercard launched its Gateway service in Syria on 21 October 2026, confirming that the platform was operational for processing international digital payments across point-of-sale and e-commerce channels. Available through Mastercard Merchant Cloud, Gateway combines global payment technology with local infrastructure, offering transaction processing, tokenisation, fraud protection and hosted checkout capabilities to banks and merchants.

The launch follows the earlier processing of Syria’s first international card-present and card-not-present transactions in more than a decade. Gateway gives Syrian banks infrastructure to extend merchant acceptance across physical and online channels, building on the restoration of international card connectivity.

6. RAKBANK’s profit rises 21.3% with support from merchant-acquiring disposal

The National Bank of Ras Al Khaimah (RAKBANK) reported a 21.3% year-on-year increase in nine-month net profit after tax to AED 2.5 billion ($681 million), with earnings benefiting from an AED 473 million ($129 million) gain on the sale of its merchant-acquiring business. In results announced on 22 October, operating income rose 15% to AED 4.5 billion ($1.23 billion), while non-interest income increased 41% to AED 1.7 billion ($463 million), including the disposal gain. Net interest income grew 3% to AED 2.8 billion ($762 million), while the net interest margin stood at 3.8%.

The disposal gain accounted for a substantial share of non-interest income. Alongside this one-off contribution, the bank added 12,000 SME customers and provided AED 4.2 billion ($1.14 billion) in new financing, demonstrating continued activity in its core business franchise. Its impaired loan ratio improved to 1.7%.

7. Lower impairment charges help ADCB lift nine-month pre-tax profit 28%

Lower impairment charges helped Abu Dhabi Commercial Bank (ADCB) increase pre-tax profit 28% year-on-year to AED 11.67 billion ($3.18 billion) for the first nine months of 2026, outpacing 10% growth in operating income. In results announced on 22 October, net impairment charges fell 44% from AED 2.92 billion ($795 million) to AED 1.65 billion ($449 million). Third-quarter pre-tax profit reached AED 4.06 billion ($1.11 billion), also increasing 28%, marking 21 consecutive quarters of profit growth.

Operating profit before impairment increased 11% to AED 13.30 billion ($3.62 billion), while operating expenses rose 9% to AED 5.01 billion ($1.36 billion). ADCB linked the reduction in third-quarter impairment partly to provisions recognised against legacy corporate accounts in 2025. Its cost-to-income ratio improved 40 basis points to 27.3%, indicating underlying efficiency gains alongside the benefit from lower credit costs.

8. Ziina secures UAE retail payments licence to expand merchant services

UAE fintech Ziina announced on 22 October that it had secured a Category III Retail Payment Services licence from the Central Bank of the UAE, authorising merchant acquiring, payment aggregation and domestic fund transfers. The approval covers merchant-acceptance products including payment links, QR payments, Tap to Pay and an online gateway. Ziina separately received Category IV exchange-business authorisation in August under its stored-value facility licence, enabling international digital transfers.

Ziina already offers payment links, QR acceptance, Tap to Pay and gateway/API payments. The additional licence broadens its regulated capabilities across merchant acquiring, payment aggregation and domestic transfers. Together with its stored-value and exchange permissions, this gives it scope to serve customers across payment acceptance, wallet balances and international transfers. Ziina says it serves more than 500,000 customers annually and processes over $1.5 billion in annualised payment volume.

9. Türkiye resumes rate cuts after five consecutive holds

The Central Bank of the Republic of Türkiye cut its one-week repo rate by 100 basis points to 36% on 22 October, its first reduction after five consecutive holds. The overnight lending and borrowing rates were also lowered by one percentage point, to 39% and 34.5%, respectively. The Monetary Policy Committee cited slower underlying inflation and weak domestic demand, while warning that elevated energy prices posed upside inflation risks.

The decision modestly reduces the benchmark cost of lira funding, while the central bank committed to maintaining tight monetary policy until price stability is achieved. For banks, the pace at which lower rates feed through to deposit costs and loan income will depend on repricing schedules, alongside the central bank’s liquidity and macroprudential measures.

10. Abu Dhabi plans an additional EUR 15 billion ($16.83 billion) investment in Greece

The UAE announced on 22 October its intention to invest an additional EUR 15 billion ($16.83 billion) in Greece under a bilateral investment initiative, during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to Athens. Separately, the UAE–Greece Strategic Forum announced 18 memorandums of understanding, agreements and commercial partnerships with a stated value of EUR 12.75 billion ($14.30 billion), spanning technology, energy, logistics, healthcare and other sectors.

The planned expansion builds on a EUR 4 billion ($4.49 billion) joint investment initiative established in May 2022, which the Greek government says has exceeded its original direct-investment target. Previous completed transactions in energy and healthcare provide evidence of investment activity under the earlier framework. Specific projects and deployment timelines for the additional EUR 15 billion ($16.83 billion) were not disclosed.

What to watch

the US Federal Reserve interest rate decision (28 October),Saudi Central Bank September banking and monetary statistics (29 October), and Central Bank of Egypt Monetary Policy Committee meeting (29 October).