Mashreq has reported a strong start to 2026, delivering AED 3.4 billion in operating income and AED 2.3 billion in net profit before tax for the first quarter ended 31 March 2026, underpinned by broad-based balance sheet expansion, resilient asset quality and continued revenue diversification.
The bank’s total assets increased 26 percent year-on-year to AED 344 billion, while customer loans expanded 33 percent to AED 168 billion and customer deposits rose 23 percent to AED 210 billion. Mashreq maintained a strong liquidity and capital position, with a Capital Adequacy Ratio of 15.8 percent and Liquidity Coverage Ratio of 131 percent.
Non-interest income contributed 41 percent of total operating income, reflecting continued momentum across transaction banking, treasury and cross-border activities. Fees and commissions grew 35 percent year-on-year to AED 468 million, while insurance, FX and other income increased 26 percent to AED 872 million.
Mashreq reported a return on equity of 20 percent and return on assets of 2.2 percent, while sustaining one of the strongest asset quality profiles in the sector with a non-performing loan ratio of 0.9 percent and a coverage ratio of 275 percent.
Strong Revenue Momentum and Diversified Income Streams
Net interest income increased 4 percent year-on-year to AED 2.0 billion despite the impact of lower interest rates, supported by strong lending growth and a CASA ratio of 63 percent. The bank noted that margin compression moderated sequentially as most of the rate-cut cycle had already been absorbed through asset repricing.
Non-interest income grew 20 percent year-on-year to AED 1.4 billion, driven by stronger transaction volumes, treasury activities and cross-border flows across Mashreq’s global corridors. The bank highlighted its position as the only non-US bank in the region with direct US dollar clearing capability.
Operating expenses increased 15 percent year-on-year to AED 1.1 billion as Mashreq continued investing in artificial intelligence initiatives, digital onboarding infrastructure and international expansion, while maintaining a cost-to-income ratio of 31 percent.
Capital Position Strengthened Following Landmark AT1 Issuance
During the quarter, Mashreq successfully completed a USD 500 million Additional Tier 1 bond issuance, which was more than four times oversubscribed and listed on Nasdaq Dubai. The issuance further strengthened the bank’s capital position and supported continued growth across lending and transaction banking activities.
The bank’s Tier 1 ratio improved to 14.5 percent, while CET1 stood at 12.7 percent, comfortably above regulatory requirements following Mashreq’s designation as a Domestic Systemically Important Bank (D-SIB).
Chairman statement
“The first quarter of 2026 has taken place against a backdrop of heightened geopolitical tension in the region, and yet it has reaffirmed the structural resilience of the UAE and the wider GCC economies and the strength of its financial system, both of which continue to provide stability and confidence even in periods of uncertainty.
The UAE and the broader region’s disciplined fiscal management, strong external position, and sustained momentum in non-oil sectors have enabled the banking sector to operate from a position of liquidity, capital strength, and operational continuity, reinforcing its role as a reliable enabler of economic activity across cycles.
Within this context, Mashreq delivered a robust performance in the first quarter, with operating income of AED 3.4 billion and a return on equity of 20 percent, reflecting the strength of its diversified business model and the consistency of its execution across a broad range of markets and client segments.
The Board has maintained close oversight of the Bank’s response to evolving regional developments, ensuring that resilience is embedded not only in financial metrics but also in governance, risk discipline, and institutional preparedness, with a clear focus on safeguarding employees, maintaining service continuity, and preserving balance sheet strength.
As we look ahead, our focus remains on safeguarding stability, supporting sustainable and disciplined growth, and ensuring that Mashreq continues to play a meaningful role in reinforcing the UAE and the region’s position as a trusted and globally connected financial centre in an increasingly complex geopolitical environment.” – H.E. Abdul Aziz Al Ghurair, Chairman, Mashreq
Leadership Commentary
“The first quarter of 2026 has been shaped by a highly complex operating environment, and our priority throughout has been to provide clarity, continuity, and consistency for our clients across the region. Against this backdrop, Mashreq delivered a net profit before tax of AED 2.3 billion, with non-interest income contributing 41% of total operating income, demonstrating the strength of a business model that is increasingly diversified and anchored in client activity.
This performance reflects deliberate choices we have made over time, including disciplined risk management, a strong funding base, and a continued focus on building deeper and more resilient client relationships. Balance sheet growth has remained robust, while asset quality continues to track at levels that are among the strongest in the sector, reinforcing the stability of the franchise.
In the current environment, our approach has been to engage earlier and more actively with our clients, particularly around liquidity, refinancing, and risk planning, ensuring that decisions are taken with full context and with a clear emphasis on resilience. We remain fully open for business, but we are doing so with discipline and a high degree of selectivity.
The strength of our operating platform has ensured uninterrupted service across all products and geographies, supported by close alignment between risk, treasury, operations, and coverage teams, as well as well-established business continuity frameworks that have been actively executed during the quarter.
Mashreq’s position at the centre of key global trade and capital corridors continues to support strong cross-border flows, with our transaction banking and US dollar clearing capabilities enabling clients to navigate shifting market dynamics with confidence and continuity.
Our capital and liquidity position remains strong, and the successful issuance of our Additional Tier 1 instrument during the quarter, which was met with significant investor demand, provides further validation of Mashreq’s credit strength and strategic direction.
At the same time, we continue to invest in the capabilities that will define our future, including artificial intelligence, advanced analytics, and scalable digital infrastructure, ensuring that we remain both resilient and forward-looking.
Our message is clear and consistent. Mashreq operates from a position of strength, remains fully accessible, and is committed to supporting our clients with discipline and clarity as conditions continue to evolve.” Ahmed Abdelaal, Group Chief Executive Officer, Mashreq
Outlook
Looking ahead, Mashreq said it remains focused on accelerating fee-generating businesses, expanding transaction banking capabilities and deepening engagement across major trade and investment corridors linked to the UAE and wider GCC region.
The bank added that strong capitalisation, resilient liquidity and industry-leading asset quality position it well to sustain growth momentum through the remainder of 2026.
