Mashreq Bank has announced record profit before tax of AED4.8 billion ($1.31 billion) for the first half of 2026, up 18% year-on-year, on operating income of AED6.8 billion ($1.85 billion).
The performance underscores the resilience of Mashreq’s diversified franchise and disciplined execution against a backdrop of heightened regional and global uncertainty, the bank said.
Mashreq Chairman Abdul Aziz Al Ghurair said: "The first half of 2026 tested the region, and the UAE answered with the resilience that has come to define it. Against a backdrop of heightened geopolitical uncertainty, the nation's economic foundations held firm, underpinned by prudent policy, a deepening non-oil economy, and a financial system that continued to operate from a position of strength and stability.
“Throughout the period, the banking sector remained well positioned to support businesses, investors and communities, while maintaining strong capital, liquidity and prudent oversight. Within this context, Mashreq delivered operating income of AED 6.8 billion and a return on equity of 21%, underscoring the resilience of the Bank and the effectiveness of its long-term strategic direction.
“The Board remains focused on ensuring that Mashreq continues to grow responsibly, with governance, risk management and financial strength at the core of every decision.
“As a Domestic Systemically Important Bank, we recognise our responsibility to contribute to the stability of the financial system, support the ambitions of the UAE's economy and create sustainable value for our shareholders and the communities we serve.
“As the UAE advances its standing as a global centre for trade, capital and innovation, Mashreq will continue to serve as a key enabler of that ambition, empowering clients, championing responsible finance, and reinforcing the nation's position as one of the world's leading financial hubs," said Al Ghurair.
"The first half of 2026 was shaped by heightened geopolitical and macroeconomic disruption across the region and globally, affecting markets, trade corridors and client decisions. Against this backdrop, Mashreq delivered record profit before tax of AED4.8 billion, up 18% year-on-year, with Q2 profit before tax increasing 28% year-on-year and return on equity at 21%. The results reflect the resilience of our diversified franchise, disciplined execution and the continued trust of our clients,” said Ahmed Abdelaal, Group Chief Executive Officer.
The quality of growth remained strong: customer deposits increased 28%, customer lending grew 26% and non-interest income rose 17% to 38% of operating income. Asset quality remained robust, with a non-performing loan ratio of 0.9%, while stronger capital and liquidity preserved our capacity to support clients prudently.
“Our priority throughout the period was to stay close to clients across our network and help them manage liquidity, financing, trade, payments and risk as conditions evolved. Our international footprint and direct US dollar clearing capability helped keep critical trade and capital flows moving across key global corridors. Operational resilience and seamless, secure service remained non-negotiable, with continuity maintained across our channels, platforms and markets.
“We enter the second half focused on disciplined growth, thoughtful capital allocation and continued investment in our people, technology, data and controls. These priorities will strengthen resilience, improve the client experience and deepen the relationships that underpin Mashreq's long-term performance. I want to thank our colleagues across the network for the commitment and precision behind these results,” said Abdelaal.
Revenue and income
Robust double-digit operating income growth, delivered across net interest and non-interest income, drawing on the full breadth of Mashreq's lending, fee and investment businesses.
● Operating income grew 10% year-on-year to AED6.8 billion, with net interest income increasing 7% to AED4.2 billion and non-interest income rising 17% to AED2.6 billion, taking the non-interest contribution to 38% of the total.
● Net interest income grew 7% year-on-year to AED4.2 billion, supported by 26% growth in loans and advances and a 63% CASA ratio that held the cost of funds low, with net interest margin strengthening 5 basis points to 2.78% in Q2 2026 from 2.73% in Q1 2026 against a stable benchmark rate.
● Non-interest income advanced 17% year-on-year to AED2.6 billion, led by an 11% increase in fee and commission income to AED 716 million on stronger transaction banking, trade finance and syndication activity, reflecting deeper client activity across the Bank's transaction and financing businesses.
● Net investment income grew 57% year-on-year to AED335 million, driven by favorable fair value movements on the Bank's equity investment portfolio and realized gains across investment securities, with the Q2 2026 contribution rising to AED 286 million from AED 48 million in Q1 2026.
● Insurance, FX and other income increased 13% year-on-year to AED1.6 billion, underpinned by robust cross-border client flows and transaction banking activity across Mashreq's international network.
Expenses and efficiency
A strong cost-to-income ratio of 31%, maintained through disciplined efficiency even as the Bank invested at scale in its digital and operating capabilities.
● Operating expenses of AED2.1 billion, reflected targeted investment in Gen-AI initiatives, digital onboarding infrastructure and the platforms and people supporting the Bank's growth, with the cost-to-income ratio sustained at 31%.
● Income growth and efficiency gains from digitization continued to absorb this incremental investment, sustaining a disciplined cost base without constraining strategic spend.
Earnings performance
Record earnings and superior returns, delivered through accelerating profitability and resilient earnings quality.
● Net profit before tax increased 18% year-on-year to AED4.8 billion, as strong revenue growth and a net impairment writeback more than absorbed continued investment in the Bank's technology and platforms.
● Profit before tax advanced 11% quarter-on-quarter to AED2.5 billion in Q2 2026, sustaining the earnings trajectory established through the year.
● Net profit after tax grew 17% year-on-year to AED4.0 billion, with an effective tax rate of 15.8% under the UAE Domestic Minimum Top-Up Tax (DMTT) and Pillar Two rules, broadly consistent with full-year 2025.
● Return on equity of 21% and return on assets of 2.2% were sustained even as shareholders' equity expanded 19%, with earnings per share rising 17% to AED19.2, underscoring the earnings power of a materially larger balance sheet.
Balance Sheet
Scale and strength across the balance sheet, with total assets reaching AED365.7 billion on growth of 25%, led by deposit inflows that outpaced lending and funded a larger investment book.
● Total assets advanced 25% year-on-year to a record AED365.7 billion, as growth across every client business expanded the balance sheet.
● Customer deposits grew 28% to AED227.2 billion, adding AED22.3 billion in H1 2026 alone, outpacing 26% growth in customer loans to AED169.1 billion and reinforcing Mashreq's deposit-led funding base.
● The strength of the deposit base funded a larger investment portfolio, which expanded to AED76.1 billion in high-grade, liquid securities.
– TradeArabia News Service
