Mashreq Reports Record AED 7.3 Billion Profit Before Tax in 9M 2026; Up 18% YoY

Customer lending rises 33% year-on-year to AED 190.6 billion, while non-performing loan ratio improves to 0.7%

Dubai, UAE: Mashreq Bank PSC (MASQ) has reported a record profit before tax of AED 7.3 billion for the first nine months of 2026, representing an 18% increase year-on-year, supported by strong lending growth, higher operating income and improved asset quality.

The bank's operating income increased 11% to AED 10.4 billion for the period ended 30 September 2026, while total assets grew 33% year-on-year to AED 405.6 billion, surpassing the AED 400 billion milestone.

Customer lending expanded 33% year-on-year to AED 190.6 billion, including 13% growth during the third quarter. Customer deposits also increased 27% to AED 237.1 billion, reflecting continued growth in the bank's client franchise.

Mashreq's net profit after tax rose 18% to AED 6.1 billion, while profit attributable to owners of the parent reached AED 6.0 billion. Return on equity improved to 20.4%, compared with 19.8% in the corresponding period of 2025.

Third-quarter profit before tax reached AED 2.5 billion, up 19% year-on-year, while quarterly net profit after tax increased 21% to AED 2.1 billion.

Commenting on the performance, H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq, said the UAE's economic model, supported by policy stability, international connectivity and sustained investment, continues to reinforce its position as a leading global business and financial centre.

He added that Mashreq remains focused on disciplined risk management, sound governance and responsible capital allocation while supporting the UAE's economic ambitions and creating sustainable value for shareholders and the wider economy.

Ahmed Abdelaal, Group Chief Executive Officer of Mashreq, said the bank's performance demonstrated its ability to expand its business while maintaining strong returns and credit quality.

He highlighted the bank's 33% year-on-year lending growth and improvement in its non-performing loan ratio to 0.7%, adding that Mashreq would continue strengthening relationships with UAE businesses, retail and SME clients, while expanding financing, trade and investment opportunities across its international network.

Revenue Growth and Digital Investment

Mashreq's net interest income increased 7% year-on-year to AED 6.5 billion, supported by lending growth that offset the impact of lower benchmark interest rates. Non-interest income rose 18% to AED 3.9 billion, accounting for 37% of total operating income.

Net fee and commission income increased 4% to AED 1.08 billion, while net investment income nearly doubled to AED 599 million, reflecting favourable fair value movements in the bank's equity investment portfolio and realised gains across investment securities.

Insurance, foreign exchange and other income increased 13% to AED 2.2 billion, supported by insurance-related revenue and cross-border client activity.

Operating expenses rose 13% to AED 3.3 billion, reflecting continued investment in artificial intelligence, digital platforms, technology and talent. The cost-to-income ratio stood at 31.4%, compared with 30.7% in the first nine months of 2025.

The bank also highlighted the growing contribution of artificial intelligence to its operations. Its Newton generative AI platform, designed for financial crime investigations, has increased investigator productivity by approximately 40%, while improving investigation quality and speed.

Asset Quality and Capital Position Strengthen

Mashreq continued to strengthen its asset quality despite significant lending expansion. The non-performing loan ratio improved to 0.7%, compared with 1.1% in September 2025 and 0.9% in June 2026.

The bank recorded a net impairment release of AED 116 million during the first nine months of 2026, compared with an impairment charge of AED 366 million in the corresponding period last year. Its non-performing loan coverage ratio increased to 311%, up from 235% a year earlier.

The Capital Adequacy Ratio stood at 16.7% at the end of September 2026, compared with 14.5% in December 2025. Tier 1 capital reached 15.6%, while Common Equity Tier 1 (CET1) stood at 13.2%.

During the third quarter, Mashreq completed a USD 500 million perpetual Additional Tier 1 issuance and a USD 500 million five-year senior bond, extending its funding maturity profile and strengthening its capital and funding position.

Liquidity remained healthy, with a Liquidity Coverage Ratio of 124% and a Loan-to-Deposit Ratio of 80%.

Strong Balance Sheet Expansion

The bank's total assets increased by AED 100 billion year-on-year to AED 405.6 billion, supported by lending growth, investments and liquid assets.

Customer deposits reached AED 237.1 billion, with year-to-date inflows of AED 32.2 billion exceeding the AED 26.3 billion increase in customer loans. The bank maintained a current and savings account (CASA) ratio of 58%.

Its investment portfolio expanded 75% year-on-year to AED 83.7 billion, reflecting the deployment of surplus liquidity into securities. Cash and central bank balances stood at AED 47 billion.

At the business segment level, Treasury and Global Markets recorded 24% growth in operating income to AED 1.6 billion, while Retail Banking income increased 10% to AED 3.7 billion. Wholesale Banking, Mashreq's largest business segment, generated AED 4.1 billion in operating income, representing 3% year-on-year growth.

Focus on Sustainable Growth and Innovation

Mashreq said its priorities for the remainder of 2026 include expanding lending and trade finance relationships with UAE businesses, strengthening its retail and SME franchises, and pursuing opportunities across its international network.

The bank will also continue investing in AI and digital capabilities to simplify customer journeys, improve productivity and enhance operational efficiency, supported by disciplined credit selection, diversified funding and prudent capital allocation.

Recognition Across Banking and Digital Innovation

During the third quarter of 2026, Mashreq received recognition across several international banking, digital transformation and customer experience awards.

Among its recognitions were multiple awards at the Asian Banking & Finance Retail and Wholesale Banking Awards, including Open Banking Initiative of the Year, AI Initiative of the Year, SME Bank of the Year and Private Bank of the Year in the UAE.

The bank also received distinctions at The Digital Banker Middle East and Africa Retail Banking Innovation Awards, including Best Digital Bank in the UAE and the Middle East, Best Mobile Banking App of the Year and Outstanding Digital Innovation in SME Banking.

Other recognitions included Most Innovative Financial Institution in the Middle East by Global Finance, Best Neobank in the Middle East and UAE at the Global Finance World's Best Digital Bank Awards, and Best Islamic Retail Bank at the MENA Banking Excellence Awards.

These recognitions reflect Mashreq's continued focus on digital banking, customer experience, AI adoption and innovation across its retail, corporate and Islamic banking businesses.