Mashreq Bank Delivers Record Nine-Month Profit as Digital Innovation Accelerates Growth

The UAE's banking sector continues to demonstrate resilience and ambition, with Mashreq reporting record pre-tax profit of AED 7.3 billion for the first nine months of 2026, driven by substantial lending growth and strategic investment in artificial intelligence and digital capabilities.

The financial performance of Mashreq Bank in the opening nine months of 2026 reflects the broader strength of the UAE’s economic positioning and the confidence of clients in the nation’s banking sector. With pre-tax profit reaching AED 7.3 billion, up 18 per cent year-on-year, the bank has demonstrated the capacity to expand substantially whilst maintaining the quality and discipline that define its operations.

Operating income grew to AED 10.4 billion, an increase of 11 per cent, supported by significant expansion in the loan book and growth of 18 per cent in non-interest income. The third quarter alone contributed AED 2.5 billion to pre-tax profit, representing growth of 19 per cent compared with the same period in 2025. Net profit after tax rose 18 per cent to AED 6.1 billion, with the effective tax rate remaining stable at 15.7 per cent under the UAE’s Domestic Minimum Top-Up Tax and Pillar Two rules.

Customer lending expanded with particular vigour, growing 33 per cent year-on-year to reach AED 190.6 billion. This growth has been funded by deposit inflows that have exceeded lending increases, with customer deposits rising 27 per cent to AED 237.1 billion. The bank raised additional term funding in the international capital markets during the third quarter, diversifying its funding base whilst maintaining deposits as the cornerstone of its strategy.

Asset quality has strengthened considerably, with the non-performing loan ratio improving to 0.7 per cent and coverage reaching 311 per cent. The Capital Adequacy Ratio stood at 16.7 per cent, reflecting disciplined capital management. Return on equity achieved 20.4 per cent, up from 19.8 per cent in the first nine months of 2025, whilst return on assets reached 2.1 per cent. Earnings per share rose 17 per cent to AED 28.8, reflecting the earnings power of a substantially larger asset base that expanded by AED 100 billion year-on-year to AED 405.6 billion.

The bank’s strategic investment in artificial intelligence and digital capabilities has begun to yield tangible benefits. Newton, its award-winning generative AI platform for financial crime investigations, has elevated investigator productivity by approximately 40 per cent whilst improving both the quality and speed of investigations. The cost-to-income ratio of 31.4 per cent for the nine-month period reflects this continued investment in technology and innovation.

As the UAE banking sector has been instrumental in supporting the nation’s economic momentum, Mashreq’s performance underscores the confidence of its clients in the bank’s diversified franchise. The bank’s capacity to achieve record profitability whilst strengthening asset quality demonstrates the resilience and adaptability that define the UAE’s financial institutions. , Mashreq’s historic CNH1 billion Dim Sum bond issuance strengthened UAE-China-Hong Kong financial connectivity and established access to Asian capital markets, further diversifying the bank’s investor base and funding sources.

What it means for Abu Dhabi

Mashreq’s record nine-month performance reinforces Abu Dhabi’s position as a hub for financial innovation and stability within the region and globally. The bank’s substantial growth in customer lending, combined with improving asset quality, demonstrates the confidence of businesses and individuals in the UAE’s economic fundamentals. As one of the nation’s leading financial institutions, Mashreq’s success reflects the strength of the economic model that has attracted sustained international investment and facilitated robust economic activity across Abu Dhabi.

The bank’s strategic deployment of artificial intelligence and digital capabilities signals the broader shift within Abu Dhabi’s financial sector towards technology-driven efficiency and innovation. This investment not only enhances customer experience and operational resilience but also positions the UAE’s banking institutions at the forefront of global financial services transformation. For Abu Dhabi’s businesses and residents, such advances translate into faster service, simplified transactions and greater access to sophisticated financial solutions.

Source: WAM

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