Mashreq Bank

1. Company Overview & Earnings Context

Mashreq is one of the UAE's leading financial institutions, offering retail, corporate, investment, Islamic, treasury and wealth management services across the Middle East, Europe, Asia and the United States. The bank continues to expand its digital banking capabilities while maintaining a diversified business model and strong international network.

For H1 2026, Mashreq delivered record financial results despite heightened regional geopolitical and macroeconomic uncertainty. Strong loan and deposit growth, higher non-interest income, improved asset quality and disciplined cost management supported record profitability, while continued investments in AI and digital platforms strengthened the bank's long-term growth strategy.

2. Financial Performance Snapshot

• Total Interest Income & Islamic Financing Income: AED 8.80 Billion

• Net Interest Income: AED 4.22 Billion

• Net Fee & Commission Income: AED 716 Million

• Operating Income: AED 6.83 Billion

• Operating Profit Before Impairment: AED 4.68 Billion

• Net Impairment Reversal: AED 122 Million

• Profit Before Tax: AED 4.80 Billion

• Income Tax Expense: AED 757 Million

• Net Profit: AED 4.05 Billion

• Earnings Per Share (EPS): AED 19.16

Compared with H1 2025:

• Operating income increased 10.3% to AED 6.83 billion.

• Net interest income increased 6.7% to AED 4.22 billion.

• Net fee & commission income increased 11.2% to AED 716 million.

• Operating profit before impairment increased 8.4% to AED 4.68 billion.

• Profit before tax increased 17.9% to AED 4.80 billion.

• Net profit increased 16.6% to AED 4.05 billion.

• Earnings per share increased from AED 16.41 to AED 19.16.

3. Operational Highlights & Key Metrics

• Total Assets: AED 365.75 Billion

• Customer Loans & Advances: AED 169.09 Billion

• Customer Deposits: AED 227.19 Billion

• Total Equity: AED 44.04 Billion

• Return on Equity (ROE): 21.0%

• Return on Assets (ROA): 2.2%

• Net Interest Margin (NIM): 2.7%

• CASA Ratio: 63%

• Cost-to-Income Ratio: 31%

• Non-Performing Loan (NPL) Ratio: 0.9%

• Capital Adequacy Ratio (CAR): 16.9%

• Liquidity Coverage Ratio (LCR): 147%

• Loan-to-Deposit Ratio (LDR): 74%

• NPL Coverage Ratio: 271%

4. Key Performance Drivers

Mashreq's record performance was driven by broad-based growth across both interest and non-interest income streams. Customer lending increased 26% while deposits grew 28%, supported by a strong low-cost funding base with a 63% CASA ratio. Fee and commission income benefited from higher transaction banking, trade finance and syndication activity, while investment income increased on favourable fair value gains and security sales. Asset quality remained exceptional with a 0.9% NPL ratio, resulting in a net impairment writeback during the period. The bank also continued investing in artificial intelligence, digital onboarding and technology platforms while maintaining an efficient 31% cost-to-income ratio.

5. Outlook & Forward Guidance

Management expects to maintain disciplined growth in the second half of 2026, focusing on prudent capital allocation and continued investment in technology, artificial intelligence, data capabilities and operational resilience. Mashreq also aims to deepen client relationships, support trade and cross-border business activity, and leverage its strong capital and liquidity position to capture further growth opportunities while maintaining prudent risk management.

6. Investor Takeaway

Mashreq delivered another record half-year performance with strong double-digit profit growth, robust balance sheet expansion, excellent asset quality and industry-leading profitability. Supported by a diversified business model, strong capital position and continued investment in digital transformation, the bank remains well positioned to sustain long-term growth despite a challenging global operating environment.