Dubai: Mashreq Bank reported a record profit before tax of AED 4.8 billion for the first half of 2026, marking an 18% year-on-year increase, supported by strong growth in lending, customer deposits and non-interest income despite heightened geopolitical and macroeconomic uncertainty.
The UAE lender generated operating income of AED 6.8 billion during the six-month period, while second-quarter profit before tax rose 28% year-on-year, reflecting the resilience of its diversified business model and disciplined execution.
Chairman H.E. Abdul Aziz Al Ghurair 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 Mashreq 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 Mashreq 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.”
Group Chief Executive Officer Ahmed Abdelaal 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.
Strong Revenue Growth
Operating income increased 10% year-on-year to AED 6.8 billion, driven by growth across both interest and fee-based businesses.
Net interest income rose 7% to AED 4.2 billion, supported by higher lending volumes, while maintaining a 63% CASA ratio that helped contain funding costs. Mashreq’s net interest margin improved to 2.78% in the second quarter, compared with 2.73% in the first quarter.
Non-interest income climbed 17% to AED 2.6 billion, representing 38% of total operating income.
Fee and commission income increased 11% to AED 716 million, benefiting from stronger transaction banking, syndications and trade finance activity.
Meanwhile, net investment income surged 57% to AED 335 million, driven by favorable fair-value gains on equity investments and realized gains from investment securities.
Insurance, foreign exchange and other income also rose 13% year-on-year to AED 1.6 billion, supported by increased cross-border transaction volumes across Mashreq’s international network.
Record Earnings and Improved Efficiency
Mashreq reported net profit after tax of AED 4.0 billion, up 17% from a year earlier, while maintaining an effective tax rate of 15.8% under the UAE’s Domestic Minimum Top-Up Tax (DMTT) and OECD Pillar Two framework.
The bank delivered a return on equity of 21% and return on assets of 2.2%, while earnings per share increased 17% to AED 19.2.
Operating expenses totaled AED 2.1 billion, reflecting continued investment in artificial intelligence, digital onboarding capabilities and technology infrastructure.
Despite these investments, Mashreq maintained a cost-to-income ratio of 31%, demonstrating continued operational efficiency.
Asset Quality Remains Strong at Mashreq Bank
Mashreq continued to report one of the region’s strongest credit profiles, with its non-performing loan (NPL) ratio remaining at just 0.9%, even as customer lending expanded by 26%.
The bank recorded a net impairment writeback of AED 122 million during the first half of 2026, compared with impairment charges during the same period last year, reflecting recoveries on previously written-off exposures.
Its loan loss coverage ratio strengthened to 271%, up from 210% a year earlier.
Capital and Liquidity Strengthen
Mashreq further strengthened its capital position during the period.
The bank’s Capital Adequacy Ratio (CAR) improved to 16.9%, while Tier 1 capital reached 15.6% and Common Equity Tier 1 (CET1) stood at 13.8%, comfortably above regulatory requirements.
Shareholders’ equity increased 19% to AED 44 billion, primarily through retained earnings.
Liquidity also remained robust, with a Liquidity Coverage Ratio (LCR) of 147% and a Loan-to-Deposit Ratio (LDR) of 74%.
Balance Sheet Expands to Record Size
Mashreq’s total assets grew 25% year-on-year to a record AED 365.7 billion.
Customer deposits increased 28% to AED 227.2 billion, adding AED 22.3 billion during the first six months of the year, while customer loans reached AED 169.1 billion, up 26%.
The strong deposit base also enabled the bank to expand its investment portfolio to AED 76.1 billion, primarily in high-quality liquid securities.
Across business segments, Treasury & Global Markets delivered 22% year-on-year operating income growth, supported by a larger investment portfolio and asset-liability management activities. The Retail Banking business recorded 11% growth, driven by higher fee income, while Wholesale Banking maintained stable performance through stronger transaction banking and fee income.
Looking ahead, Mashreq said it will continue focusing on disciplined growth, prudent capital allocation and ongoing investment in technology, artificial intelligence, data capabilities and operational resilience to strengthen client relationships and support long-term sustainable growth.
Looking Ahead
Mashreq enters H2 2026 with a resilient business model, a reinforced capital position and a funding base broadened by strong deposit growth, providing a solid platform for continued progress.
The Bank’s operations and financial standing remain sound across all its markets, with risk and business continuity frameworks maintained at full readiness and exposures managed prudently against a demanding regional backdrop.
Management’s priorities for the remainder of the year are consistent with those that shaped H1 2026: growing fee and transaction income, advancing the Bank’s artificial intelligence and digital capabilities, and deepening activity across its international trade and payment corridors.
Underpinning this is a disciplined balance sheet, with a reinforced capital base, robust liquidity and a cost of risk consistent with a high-quality loan book providing the foundation for Mashreq Bank to continue generating strong, sustainable returns as it grows.
The UAE and the wider region have again demonstrated their stability and resilience through an extraordinary period, and their long-term economic foundations remain firm. Mashreq Bank will continue to stand alongside its clients and the communities it serves across its markets, committed to supporting them and to contributing to the strength and stability of the region through the period ahead.
Awards and Recognition
Euromoney Awards for Excellence 2026
- Middle East’s Best Bank Mashreq Bank
- Middle East’s Best Digital Bank
- Middle East’s Best Bank for Large Corporates
- World’s Best Digital Bank for Large Corporates
- UAE’s Best Digital Bank
- UAE’s Best Digital Bank for Large Corporates
- UAE’s Best Bank for Mortgages/Home Loans
- Euromoney Islamic Finance Awards 2026
- World’s Best Islamic Digital Bank
- Middle East’s Best Islamic Digital Bank
- UAE’s Best Islamic Digital Bank
- Global Private Banking Innovation Awards 2026
- Best Private Bank – Middle East
- Best Private Bank – United Arab Emirates
- Best Private Bank – Digitally Empowering RMs
- Best Private Bank for Funds – Middle East
- Best Private Bank for Discretionary Portfolio – United Arab Emirates
- The Banker Islamic Bank of the Year Awards
- Islamic Retail Bank of the Year – Middle East
- Most Innovative Card Product – Global
- Excellence in Islamic Digital Banking – Global
- MENA Banking Excellence Retail, Digital & SME Awards
- MENA Best Islamic Retail Bank
- Euromoney Trade Finance Award:
- #1-ranked bank in Trade Finance for the UAE and Bahrain.
- Leading trade finance provider in the Middle East.
- Best Trade Finance Bank for Products in the Middle East.
- MEA Finance Banking Technology Awards 2026
- Best Overall AI Strategy
- Best AI Use in Regulatory Compliance
- Best Innovation in Trade Finance
- Best Regulation Technology Solution
- Best AML/KYC Solution Implementation
- Best Use of AI for Fraud Prevention and Detection
- Best Analytics System
- Best AI-Driven User Experience Innovation
Disclaimer
This document has been prepared by Mashreq Bank PSC (‘Mashreq’) for informational purposes solely. The views, statements and data presented herein do not represent a public offer or invitation to subscribe to, purchase or sell any financial instruments or securities, and should not be construed as investment advice or a recommendation regarding any financial product.
While care has been taken in preparing this material, it may include data derived from third-party sources that have not been independently validated. No warranty or representation is made as to its accuracy or completeness. Readers are encouraged to seek independent financial, legal or tax advice tailored to their specific circumstances.
This document may contain forward-looking statements reflecting current management views on future events, financial conditions or performance. Such statements are subject to known and unknown risks and uncertainties – including economic developments, interest rate movements, regulatory shifts and geopolitical events – and actual results may differ materially. Mashreq does not undertake any obligation to revise or update such statements except as required by applicable law.
Contact
For media enquiries
Public Relations | Email: Media@mashreq.com
For investor relations enquiries
Investor Relations | Email: InvestorRelations@mashreq.com
