Mashreq Bank reported a record pre-tax profit of Dh7.3 billion for the first nine months of 2026, up 18 per cent year-on-year, as a 33 per cent expansion in customer lending and a swing in impairments lifted earnings.
Operating income rose 11 per cent to Dh10.4 billion, while the bank’s total assets grew by Dh100 billion from a year earlier to Dh405.6 billion. Net profit after tax climbed 18 per cent to Dh6.1 billion, and profit attributable to owners of the parent rose 18 per cent to Dh6.0 billion.
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Return on equity stood at 20.4 per cent, up from 19.8 per cent in the same period of 2025, while return on assets was 2.1 per cent. Earnings per share rose 17 per cent to Dh28.8.
Abdul Aziz Al Ghurair, chairman of Mashreq, said the UAE had continued to show “the strength of its economic model”, with the banking sector instrumental in supporting that momentum.
Ahmed Abdelaal, Group Chief Executive Officer, said the results demonstrated the bank’s “ability to grow the franchise while maintaining strong returns and credit quality”.
Profit before tax for the third quarter reached Dh2.5 billion, 19 per cent higher than in the same quarter of 2025. Net profit after tax for the quarter grew 21 per cent year-on-year to Dh2.1 billion. Quarterly operating income rose 12 per cent year-on-year to Dh3.6 billion.
Of the nine-month increase in pre-tax profit, Dh635 million came from operating profit growth of 10 per cent. A further Dh482 million came from a better impairment picture: the bank recorded a net release of Dh116 million, compared with a charge of Dh366 million a year earlier.
Lending and deposits
Customer loans grew 33 per cent year-on-year to Dh190.6 billion, including a net increase of Dh21.5 billion in the third quarter alone, or 13 per cent, across wholesale and retail clients. Customer deposits rose 27 per cent to Dh237.1 billion, and the share of current and savings accounts (CASA) stood at 58 per cent.
The investment portfolio expanded 75 per cent to Dh83.7 billion as surplus liquidity was deployed into high-quality securities. The loan-to-deposit ratio was 80 per cent, up from 74 per cent at the end of June.
The non-performing loan ratio improved to 0.7 per cent from 1.1 per cent a year earlier and 0.9 per cent at the end of June. Non-performing loans also fell in absolute terms during the third quarter, despite the pace of lending growth. Coverage rose to 311 per cent from 235 per cent at September 2025.
Net interest income rose 7 per cent to Dh6.5 billion, while non-interest income grew 18 per cent to Dh3.9 billion, lifting its share of total income to 37 per cent.
Net investment income almost doubled to Dh599 million on favourable fair-value movements and realised gains.
Net fee and commission income rose 4 per cent to Dh1.08 billion. Third-quarter fees were up 45 per cent on the previous quarter, but 7 per cent lower year-on-year.
Insurance, forex and other income increased 13 per cent to Dh2.2 billion.
Net interest margin was 2.71 per cent for the nine months, compared with 3.2 per cent a year earlier, as deposit inflows were placed in liquid securities ahead of being redeployed into lending.
Expenses and costs
By business line, Wholesale Banking, the largest at 39 per cent of operating income, grew 3 per cent to Dh4.1 billion. Retail Banking grew 10 per cent to Dh3.7 billion, while Treasury and Global Markets grew 24 per cent to Dh1.6 billion.
Operating expenses rose 13 per cent to Dh3.3 billion, directed towards generative AI initiatives, digital platforms and talent. The cost-to-income ratio was 31.4 per cent, against 30.7 per cent a year earlier, improving to 31.3 per cent in the third quarter from 31.9 per cent in the second.
The Capital Adequacy Ratio stood at 16.7 per cent at 30 September, compared with 14.5 per cent in December 2025, with Tier 1 at 15.6 per cent and Common Equity Tier 1 at 13.2 per cent.
For the rest of 2026, the bank said it would focus on deepening lending, and retail and SME franchises among others.
Source: Khaleej Times