Mashreq Bank PSC has reported record profit before tax of AED 7.3 billion for the first nine months of 2026, up 18% year on year. Operating income increased 11% to AED 10.4 billion, with growth in operating profit and an improvement in impairments supporting the increase in earnings. Net profit after tax rose 18% to AED 6.1 billion, and return on equity reached 20.4%.
Total assets grew by AED 100 billion year on year to AED 405.6 billion, with customer lending up 33% and customer deposits up 27%. Asset quality strengthened further, with the non-performing loan (NPL) ratio improving to 0.7%, while the Capital Adequacy Ratio stood at 16.7%.
Management Commentary
H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq, said:
“As a Domestic Systemically Important Bank, our responsibility extends beyond financial performance. The Board remains committed to ensuring that growth is supported by sound governance, disciplined risk management and responsible capital allocation. These principles will continue to guide Mashreq as we support the UAE’s economic ambitions, strengthen international connectivity and create sustainable value for our shareholders and the wider economy.”
Ahmed Abdelaal, Group Chief Executive Officer, Mashreq, said:
“Mashreq’s first nine months of 2026 demonstrate our ability to grow the franchise while maintaining strong returns and credit quality. We delivered record nine-month profit before tax of AED 7.3 billion, up 18% year-on-year, and return on equity of 20.4%. Customer lending grew 33% year-on-year, while our non-performing loan ratio improved to 0.7%.”
Strong Revenue Growth and Profitability
Mashreq delivered double-digit revenue growth, with all income lines rising year on year:
- Operating income: AED 10.4 billion, up 11% year on year
- Net interest income: AED 6.5 billion, up 7%
- Non-interest income: AED 3.9 billion, up 18%, representing 37% of operating income
- Operating profit: AED 7.1 billion, up 10%
- Profit before tax: AED 7.3 billion, up 18%
- Profit after tax: AED 6.1 billion, up 18%
- Earnings per share: AED 28.8, up 17%
- Return on equity: 20.4%
- Return on assets: 2.1%
- Net interest margin: 2.71%
- Cost-to-income ratio: 31.4%
Net interest income grew on the strength of a 33% expansion in customer loans, with volume growth outweighing the effect of lower benchmark rates. Net fee and commission income rose 4% to AED 1,076 million, net investment income almost doubled to AED 599 million, and insurance, FX and other income increased 13% to AED 2.2 billion. Operating expenses rose 13% to AED 3.3 billion, directed towards GenAI initiatives, digital platforms and talent.
Impairments recorded a net release of AED 116 million, compared with a charge of AED 366 million in 9M 2025. For the third quarter alone, profit before tax reached AED 2.5 billion, up 19% year on year, while net profit after tax grew 21% to AED 2.1 billion.
Financing Growth and Balance Sheet Expansion
Mashreq’s balance sheet expanded strongly, led by customer lending, investments and liquid assets.
- Total assets: AED 405.6 billion, up 33% year on year and 11% in the third quarter
- Customer loans: AED 190.6 billion, up 33% year on year and 13% in the third quarter
- Customer deposits: AED 237.1 billion, up 27% year on year
- CASA ratio: 58%
- Investment portfolio: AED 83.7 billion, up 75% year on year
- Shareholders’ equity: AED 46.0 billion, up 22% year on year
Customer deposits increased by AED 32.2 billion year to date, exceeding the AED 26.3 billion increase in customer loans. During the third quarter, Mashreq completed a USD 500 million perpetual Additional Tier 1 issuance and a USD 500 million five-year senior bond, both well supported by international investors.
Asset Quality and Capital Position
Asset quality strengthened further during a period of strong lending growth.
- Non-performing loan ratio: 0.7%, improved from 1.1% at September 2025
- Coverage ratio: 311%, up from 235% at September 2025
- Capital Adequacy Ratio (CAR): 16.7%, up 222 basis points from December 2025
- Tier 1 capital ratio: 15.6%
- Common Equity Tier 1 (CET1) ratio: 13.2%
- Liquidity Coverage Ratio: 124%
- Loan-to-deposit ratio: 80%
Non-performing loans also fell in absolute terms during a quarter in which customer lending expanded 13%, reflecting active credit portfolio management. The regulatory capital base grew to AED 46.6 billion from AED 37.5 billion at December 2025, with all capital ratios comfortably above regulatory requirements, including the full D-SIB buffer.
Business Performance
Wholesale Banking, the largest business at 39% of operating income, grew 3% to AED 4.1 billion. Retail Banking grew operating income 10% to AED 3.7 billion on 20% growth in non-interest income, with segment assets expanding 54% year to date to AED 55.6 billion. Treasury & Global Markets grew operating income 24% to AED 1.6 billion.
Digital Banking and AI
Mashreq continued to invest in AI and digital capabilities aimed at faster service, simpler customer journeys and greater productivity. Newton, the bank’s GenAI platform for financial crime investigations, has lifted investigator productivity by around 40%.
Industry Recognition
Mashreq received a number of awards in the third quarter, including Best Digital Bank in the UAE and the Middle East from The Digital Banker and Most Innovative Financial Institution in the Middle East from Global Finance.
