Dubai Financial Market-listed Mashreq Bank reported record profit before tax of AED 7.26 billion for the first nine months of 2026, representing an 18% year-on-year increase from AED 6.14 billion. Net profit after tax rose 18% to AED 6.12 billion, while profit attributable to shareholders increased 18% to AED 5.99 billion, supported by higher operating income, expanding lending activity and improved credit impairment performance.
Operating income increased 11% to AED 10.41 billion, driven by a 7% rise in net interest income to AED 6.52 billion and an 18% increase in non-interest income to AED 3.89 billion. Operating profit grew 10% to AED 7.14 billion, while earnings per share increased 17% to AED 28.8. Return on equity improved to 20.4% from 19.8% a year earlier.
For Q3 2026, Mashreq generated operating income of AED 3.58 billion, up 12% year-on-year, while operating profit increased 13% to AED 2.46 billion. Quarterly profit before tax rose 19% to AED 2.45 billion, and net profit after tax increased 21% to AED 2.07 billion. Non-interest income grew 19% during the quarter, supported by investment income and activity across the bank’s transaction banking and financial markets businesses.
Total assets reached AED 405.55 billion as of September 30, 2026, representing a 33% increase from AED 305.46 billion a year earlier. Customer loans expanded 33% to AED 190.62 billion, including 13% growth during the third quarter. Customer deposits increased 27% to AED 237.09 billion, while the investment portfolio grew 75% to AED 83.66 billion, reflecting the deployment of additional liquidity into securities.
Asset quality strengthened, with the non-performing loan ratio declining to 0.7% from 1.1% in September 2025, while provision coverage increased to 311% from 235%. Mashreq recorded a net impairment release of AED 116 million during the nine-month period, compared with an impairment charge of AED 366 million a year earlier. This improvement contributed to the increase in profitability alongside higher operating earnings.
Operating expenses increased 13% to AED 3.27 billion, reflecting continued investment in digital platforms, artificial intelligence and business expansion. The cost-to-income ratio rose to 31.4% from 30.7%, while net interest margin declined to 2.7% from 3.2%, reflecting the impact of lower benchmark interest rates and changes in the bank’s asset mix.
Mashreq maintained a capital adequacy ratio of 16.7%, compared with 14.5% at the end of 2025, supported by retained earnings and additional capital issuance. Its Common Equity Tier 1 ratio stood at 13.2%, while the liquidity coverage ratio reached 124%. During the third quarter, the bank completed a USD 500 million Additional Tier 1 capital issuance and a USD 500 million five-year senior bond to strengthen its funding position.
Group Chief Executive Officer Ahmed Abdelaal highlighted Mashreq’s continued lending growth, improving credit quality and focus on digital innovation. The bank reported that its generative AI platform, Newton, has increased financial crime investigator productivity by approximately 40%. Looking ahead, Mashreq intends to prioritise profitable growth, expand client relationships and strengthen its retail, SME and international banking operations while maintaining disciplined risk management.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, or legal advice.
