Mashreq Bank has delivered a record performance for the first half of 2026, with profit before tax rising 18% year-on-year to AED 4.8 billion on operating income of AED 6.8 billion. Net profit after tax grew 17% to AED 4.0 billion, with Q2 2026 profit before tax accelerating 28% year-on-year to AED 2.5 billion, underscoring the strength of the Bank’s diversified franchise amid a challenging regional environment.
Total operating income grew 10% year-on-year to AED 6.8 billion, driven by a 7% rise in net interest income to AED 4.2 billion and a 17% increase in non-interest income to AED 2.6 billion, which now represents 38% of total revenues. Fee and commission income grew 11% to AED 716 million, while net investment income surged 57% to AED 335 million. The net interest margin strengthened 5 basis points quarter-on-quarter to 2.78% in Q2 2026. Return on equity stood at 21% and return on assets at 2.2%, with earnings per share rising 17% to AED 19.2.
On the balance sheet, total assets reached a record AED 365.7 billion, up 25% year-on-year. Customer deposits grew 28% to AED 227.2 billion, outpacing 26% growth in customer loans to AED 169.1 billion, lowering the loan-to-deposit ratio to 74%. The investment portfolio expanded to AED 76.1 billion in high-grade liquid securities. Asset quality remained sector-leading, with a non-performing loan ratio of just 0.9% and provision coverage strengthening to 271%. The Bank recorded a net impairment writeback of AED 122 million in H1 2026. Capital adequacy strengthened to 16.9%, up 114 basis points quarter-on-quarter, with a liquidity coverage ratio of 147%.
H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq, said: “The first half of 2026 tested the region, and the UAE answered with the resilience that has come to define it. Against a backdrop of heightened geopolitical uncertainty, the nation’s economic foundations held firm, underpinned by prudent policy, a deepening non-oil economy, and a financial system that continued to operate from a position of strength and stability.
Throughout the period, the banking sector remained well positioned to support businesses, investors and communities, while maintaining strong capital, liquidity and prudent oversight. Within this context, Mashreq delivered operating income of AED 6.8 billion and a return on equity of 21%, underscoring the resilience of the Bank and the effectiveness of its long-term strategic direction.
The Board remains focused on ensuring that Mashreq continues to grow responsibly, with governance, risk management and financial strength at the core of every decision.
As a Domestic Systemically Important Bank, we recognize our responsibility to contribute to the stability of the financial system, support the ambitions of the UAE’s economy and create sustainable value for our shareholders and the communities we serve.
As the UAE advances its standing as a global centre for trade, capital and innovation, Mashreq will continue to serve as a key enabler of that ambition, empowering clients, championing responsible finance, and reinforcing the nation’s position as one of the world’s leading financial hubs.”
Ahmed Abdelaal, Group Chief Executive Officer, said: “The first half of 2026 was shaped by heightened geopolitical and macroeconomic disruption across the region and globally, affecting markets, trade corridors and client decisions. Against this backdrop, Mashreq delivered record profit before tax of AED 4.8 billion, up 18% year-on-year, with Q2 profit before tax increasing 28% year-on-year and return on equity at 21%. The results reflect the resilience of our diversified franchise, disciplined execution and the continued trust of our clients. “
The quality of growth remained strong: customer deposits increased 28%, customer lending grew 26% and non-interest income rose 17% to 38% of operating income. Asset quality remained robust, with a non-performing loan ratio of 0.9%, while stronger capital and liquidity preserved our capacity to support clients prudently.
Our priority throughout the period was to stay close to clients across our network and help them manage liquidity, financing, trade, payments and risk as conditions evolved. Our international footprint and direct US dollar clearing capability helped keep critical trade and capital flows moving across key global corridors. Operational resilience and seamless, secure service remained non-negotiable, with continuity maintained across our channels, platforms and markets.
We enter the second half focused on disciplined growth, thoughtful capital allocation and continued investment in our people, technology, data and controls. These priorities will strengthen resilience, improve the client experience and deepen the relationships that underpin Mashreq’s long-term performance. I want to thank our colleagues across the network for the commitment and precision behind these results.”
