Mashreq profit before tax rose 18% year-on-year to a record AED 7.3 billion in the nine months ended 30 September 2026, Mashreq Bank PSC (MASQ) reported today. Operating income increased 11% to AED 10.4 billion, with growth in operating profit and an improvement in impairments supporting the increase in earnings. Customer lending expanded 13% during the third quarter, while the non-performing loan ratio improved to 0.7% and the Capital Adequacy Ratio stood at 16.7%.

Mashreq Profit at a Glance (9M 2026)

  • Net profit before tax: AED 7.3 billion
  • Operating income: AED 10.4 billion
  • Operating profit: AED 7.1 billion
  • Return on equity: 20.4%; return on assets: 2.1%
  • Net interest margin: 2.7%
  • Customer loan growth: 33% year-on-year; customer deposit growth: 27% year-on-year
  • CASA ratio: 58%; cost-to-income ratio: 31%
  • Capital Adequacy Ratio: 16.7%; NPL ratio: 0.7%

Chairman's Message

H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq, said, "The global economy is undergoing a period of significant transformation, as evolving trade patterns, investment flows and geopolitical dynamics reshape the international economic landscape. For the region, this presents an opportunity to deepen economic diversification, strengthen global partnerships and build new avenues for sustainable growth. The UAE has continued to demonstrate the strength of its economic model, combining policy stability, international connectivity and sustained investment to reinforce its position as a leading global business and financial centre.

The UAE banking sector has been instrumental in supporting this momentum, facilitating economic activity while maintaining strong financial fundamentals. Against this backdrop, Mashreq delivered operating income of AED 10.4 billion in the first nine months of 2026, reflecting the strength of its diversified franchise and the confidence of its clients.

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."

Group CEO's Comments

Ahmed Abdelaal, Group Chief Executive Officer, 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%.

Our priority is to translate this growth into deeper client relationships and sustainable shareholder value. Supporting UAE companies and businesses contributing to the UAE economy remains central to our lending and trade finance activities, alongside serving the needs of our retail and SME clients. Across our international network, we are deepening relationships and connecting clients to financing, trade and investment opportunities. Selective capital allocation and a diversified funding base will continue to guide how we grow.

As we scale, our investment in AI and digital capabilities is directed at faster service, simpler customer journeys and greater productivity. Newton, our award-winning GenAI platform for financial crime investigations, has already lifted investigator productivity by around 40% while improving the quality and speed of our investigations. We are focused on embedding these capabilities across the business, supported by strong controls and clear accountability for the value they deliver.

We enter the final quarter focused on profitable growth, disciplined execution and strengthening the capabilities that will sustain Mashreq's performance over the long term. I thank our colleagues for their commitment and our clients for their continued trust."

Performance Review: 9M 2026

Operating income grew 11% year-on-year to AED 10.4 billion in 9M 2026, supported by net interest income on a substantially expanded loan book and 18% growth in non-interest income. Profit before tax rose 18% to a record AED 7.3 billion, with the third quarter contributing AED 2.5 billion, 19% more than in Q3 2025.

Total assets grew by AED 100 billion year-on-year to AED 405.6 billion, with customer lending growth of 33% and deposit growth of 27%. Customer deposits increased by AED 32.2 billion year-to-date, exceeding the AED 26.3 billion increase in customer loans. The Bank also raised term funding in the international capital markets during the third quarter.

Asset quality strengthened further, with a non-performing loan ratio of 0.7% and coverage of 311%, while the Capital Adequacy Ratio stood at 16.7%. The nine-month cost-to-income ratio was 31.4%, with continued investment in the Bank's digital and AI capabilities.

Revenue and Income

Double-digit nine-month revenue growth, with all income lines rising year-on-year and non-interest income growing 18%.

  • Operating income grew 11% year-on-year to AED 10.4 billion, with net interest income rising 7% to AED 6.5 billion and non-interest income 18% to AED 3.9 billion, lifting the non-interest contribution to 37% of the total.
  • Net interest income grew on the strength of a 33% expansion in customer loans, with volume growth outweighing the effect of lower benchmark rates through most of the period. Net interest margin on earning assets was 2.71% for 9M 2026 and 2.67% in the third quarter, as strong deposit inflows were deployed into high-quality liquid securities ahead of their redeployment into lending. Third-quarter net interest income rose 5% quarter-on-quarter to AED 2.3 billion.
  • Net fee and commission income rose 4% year-on-year to AED 1,076 million. Third-quarter net fee income increased 45% quarter-on-quarter to AED 360 million on stronger transaction banking, lending and trade finance activity, and was 7% lower year-on-year.
  • Net investment income almost doubled to AED 599 million as the Bank's equity investment portfolio recorded favourable fair value movements and gains were realised across investment securities; the third quarter contributed AED 264 million, against AED 99 million in Q3 2025.
  • Insurance, FX and other income increased 13% to AED 2.2 billion, supported by steady insurance-related income and foreign exchange income from cross-border client flows across Mashreq's international network.

Expenses and Efficiency

Purposeful investment in the platforms, technology and people that underpin Mashreq's growth, with a nine-month cost-to-income ratio of 31.4%.

  • Operating expenses of AED 3.3 billion rose 13% year-on-year, directed towards Gen-AI initiatives, digital platforms and the talent supporting the Bank's expansion across its markets. Operating income grew 11% over the same period, with the cost-to-income ratio at 31.4%, compared with 30.7% a year earlier.
  • In the third quarter, operating income grew 5% quarter-on-quarter against a 4% rise in expenses, with the cost-to-income ratio improving to 31.3% from 31.9% in Q2.

Mashreq Profit and Earnings Performance

Record nine-month earnings and a return on equity of 20.4%, with third-quarter profit before tax growing 19% year-on-year.

  • Net profit before tax increased 18% year-on-year to AED 7.3 billion, with AED 635 million of the increase from operating profit growth of 10% on 11% revenue growth, and AED 482 million from the improvement in impairments, from a charge of AED 366 million in 9M 2025 to a net release of AED 116 million.
  • Third-quarter profit before tax reached AED 2.5 billion, growing 19% year-on-year, with operating profit rising 6% quarter-on-quarter and 13% year-on-year, and net profit after tax for the quarter growing 21% year-on-year to AED 2.1 billion.
  • Net profit after tax rose 18% to AED 6.1 billion, with the effective tax rate stable at 15.7% under the UAE Domestic Minimum Top-Up Tax (DMTT) and Pillar Two rules, and profit attributable to owners of the parent rising 18% to AED 6.0 billion.
  • Return on equity of 20.4%, against 19.8% in 9M 2025, and return on assets of 2.1% were delivered on a shareholders' equity base that expanded 22% year-on-year to AED 46.0 billion, demonstrating the earnings power of a substantially larger asset base. Earnings per share rose 17% to AED 28.8.

Credit Quality

Asset quality strengthened further during a period of strong lending growth, with the non-performing loan ratio at 0.7% and coverage at 311%.

  • The non-performing loan ratio improved to 0.7%, from 1.1% at September 2025 and 0.9% at June 2026, as customer loans grew 33% year-on-year. Non-performing loans also fell in absolute terms during a quarter in which customer lending expanded 13%, reflecting active credit portfolio management.
  • Impairments recorded a net release of AED 116 million in 9M 2026, against a charge of AED 366 million in 9M 2025, with a charge of AED 7 million in the third quarter, as recoveries on previously written-off exposures continued to offset new provisioning.
  • Coverage rose to 311% from 235% at September 2025, with expected credit loss allowances increasing in step with the portfolio and providing ample protection against credit deterioration.

Balance Sheet

Total assets grew by AED 100 billion year-on-year to AED 405.6 billion, with customer lending growing 33% year-on-year and 13% in the third quarter.

  • Total assets rose 33% year-on-year and 11% in the quarter to AED 405.6 billion, led by customer lending, investments and liquid assets.
  • Customer loans grew 33% year-on-year to AED 190.6 billion, a net increase of AED 21.5 billion during the third quarter across wholesale and retail clients, taking total lending to customers and banks to AED 252.3 billion.
  • Customer deposits grew 27% year-on-year to AED 237.1 billion, with year-to-date inflows of AED 32.2 billion exceeding loan growth of AED 26.3 billion. In the third quarter, loan growth of AED 21.5 billion was funded by AED 9.9 billion of deposit inflows, the USD 500 million senior bond and repurchase agreements, with deposits remaining the core of the Bank's funding and the CASA ratio at 58%.
  • The investment portfolio expanded 75% year-on-year to AED 83.7 billion, reflecting the deployment of surplus liquidity into securities.

Capital and Liquidity

A Capital Adequacy Ratio of 16.7%, strengthened by 222 basis points since December 2025 through retained earnings and the Bank's second Additional Tier 1 issuance of the year.

  • The Capital Adequacy Ratio stood at 16.7% at 30 September 2026, against 14.5% at December 2025, with Tier 1 at 15.6% and Common Equity Tier 1 at 13.2%, each comfortably above regulatory requirements including the full D-SIB buffer.
  • During the 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 and extending the maturity profile of the Bank's funding.
  • Liquidity remained strong, with a Liquidity Coverage Ratio of 124% and a Loan-to-Deposit Ratio of 80%.

Sustaining Growth and Returns

Mashreq's focus for the remainder of 2026 is to translate its expanded client franchise into sustainable revenue and returns. Priorities include deepening lending, trade and transaction banking relationships with UAE businesses and clients contributing to the UAE economy, strengthening the retail and SME franchises, and pursuing opportunities across the Bank's established international network.

Investment in AI and digital capabilities will remain directed at simpler customer journeys and greater productivity. Execution will be supported by disciplined credit selection, diversified funding and prudent capital allocation, with the pace of growth calibrated to market conditions and client demand.