Mashreq Bank PSC (MASQ), one of the leading financial institutions in the MENA region, today delivered a strong first-quarter performance, with Operating Income growing to AED 3.4 billion and Net Profit Before Tax increasing to AED 2.3 billion for the quarter ended 31 March 2026, demonstrating the resilience of Mashreq’s globally diversified franchise through an extraordinary regional environment, supported by a strong liquidity position and uninterrupted operations across all channels.
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Mashreq also delivered strong growth across its balance sheet, with customer loans increasing by 33% year-on-year and customer deposits rising by 23%, while maintaining industry-leading asset quality and a Return on Equity (ROE) of 20%.
Chairman Mashreq, H.E. Abdul Aziz Al Ghurair said that, “The first quarter of 2026 has taken place against a backdrop of heightened geopolitical tension in the region, and yet it has reaffirmed the structural resilience of the UAE and the wider GCC economies and the strength of its financial system, both of which continue to provide stability and confidence even in periods of uncertainty.
The UAE and the broader region’s disciplined fiscal management, strong external position, and sustained momentum in non-oil sectors have enabled the banking sector to operate from a position of liquidity, capital strength, and operational continuity, reinforcing its role as a reliable enabler of economic activity across cycles.
Within this context, Mashreq delivered a robust performance in the first quarter, with operating income of AED 3.4 billion and a return on equity of 20 percent, reflecting the strength of its diversified business model and the consistency of its execution across a broad range of markets and client segments.
The Board has maintained close oversight of the Bank’s response to evolving regional developments, ensuring that resilience is embedded not only in financial metrics but also in governance, risk discipline, and institutional preparedness, with a clear focus on safeguarding employees, maintaining service continuity, and preserving balance sheet strength.
As we look ahead, our focus remains on safeguarding stability, supporting sustainable and disciplined growth, and ensuring that Mashreq continues to play a meaningful role in reinforcing the UAE and the region’s position as a trusted and globally connected financial centre in an increasingly complex geopolitical environment.”
Group Chief Executive Officer Mashreq, Ahmed Abdelaal said that, “The first quarter of 2026 has been shaped by a highly complex operating environment, and our priority throughout has been to provide clarity, continuity, and consistency for our clients across the region. Against this backdrop, Mashreq delivered a net profit before tax of AED 2.3 billion, with non-interest income contributing 41% of total operating income, demonstrating the strength of a business model that is increasingly diversified and anchored in client activity.
This performance reflects deliberate choices we have made over time, including disciplined risk management, a strong funding base, and a continued focus on building deeper and more resilient client relationships. Balance sheet growth has remained robust, while asset quality continues to track at levels that are among the strongest in the sector, reinforcing the stability of the franchise.
In the current environment, our approach has been to engage earlier and more actively with our clients, particularly around liquidity, refinancing, and risk planning, ensuring that decisions are taken with full context and with a clear emphasis on resilience. We remain fully open for business, but we are doing so with discipline and a high degree of selectivity.
The strength of our operating platform has ensured uninterrupted service across all products and geographies, supported by close alignment between risk, treasury, operations, and coverage teams, as well as well-established business continuity frameworks that have been actively executed during the quarter.
Mashreq’s position at the centre of key global trade and capital corridors continues to support strong cross-border flows, with our transaction banking and US dollar clearing capabilities enabling clients to navigate shifting market dynamics with confidence and continuity.
Our capital and liquidity position remains strong, and the successful issuance of our Additional Tier 1 instrument during the quarter, which was met with significant investor demand, provides further validation of Mashreq’s credit strength and strategic direction.
At the same time, we continue to invest in the capabilities that will define our future, including artificial intelligence, advanced analytics, and scalable digital infrastructure, ensuring that we remain both resilient and forward-looking.
Our message is clear and consistent. Mashreq operates from a position of strength, remains fully accessible, and is committed to supporting our clients with discipline and clarity as conditions continue to evolve.”
Mashreq opened 2026 with exceptional momentum, delivering AED 3.4 billion in operating income and AED 2.3 billion in net profit before tax in Q1 2026, supported by record balance-sheet expansion, with customer loans growing 33% and total assets expanding 26% year-on-year. Non-interest income contributed 41% of total operating income, underscoring the continued diversification of the Bank’s revenue mix and the strength of its fee-generating businesses.
Amid the regional conflict that shaped Q1 2026, Mashreq continued to operate with resilience across the UAE and its international markets. All banking services, digital platforms and client channels have functioned without disruption and the Bank’s capital position, liquidity and funding profile remains strong and comfortably above regulatory requirements. Mashreq’s commitment to its clients, employees and the communities it serves remains steadfast, underpinned by the same values of stability, continuity and purpose that have defined this institution for over five decades.
Mashreq enters the second quarter of 2026 with strong momentum, a resilient business model and a strengthened capital base following the landmark AT1 issuance in February. The Bank’s operations and financial position remain unaffected by regional developments, with enterprise risk management and business continuity frameworks fully activated across all geographies.
The strategic agenda for the remainder of 2026 remains focused on sustaining the momentum of the first quarter. Further diversification of revenue through fee-generating and transaction banking activities, alongside accelerated deployment of AI and digital platforms, will drive both topline growth and operating leverage. Deeper engagement across Mashreq’s trade and investment corridors will continue to underpin the volume momentum of recent quarters.
Capital discipline, rigorous risk governance and industry-leading cost efficiency remain the foundations of Mashreq’s ability to deliver superior returns through cycles. The capital base has strengthened through Q1, liquidity remains robust, and credit quality continues to perform at exceptional levels through a period of accelerated growth.
With the UAE’s sovereign credit ratings affirmed at the highest levels by global rating agencies despite ongoing regional challenges, and with the country’s economic fundamentals remaining sound, Mashreq enters the remainder of 2026 with confidence, well positioned to deliver sustainable value for shareholders while remaining committed to the clients, communities and markets it serves.
