Assets surpass AED 400 billion as customer lending grows 33% year-on-year and the non-performing
loan ratio improves to 0.7%
Dubai, 29 October 2026 – Mashreq Bank PSC (MASQ) today reported record nine-month profit before tax of AED 7.3 billion
for the period ended 30 September 2026, up 18% year-on-year. Operating income increased 11% to AED 10.4 billion, with
growth in operating profit and an improvement in impairments supporting the increase in earnings. Customer lending
expanded 13% during the third quarter, while the non-performing loan ratio improved to 0.7% and the Capital Adequacy Ratio
stood at 16.7%.
9M 2026 Key Financials
AED 7.3 bn
Net Profit Before Tax
AED 10.4 bn
Operating Income
AED 7.1 bn
Operating Profit
20.4%
Return on Equity
2.1%
Return on Assets
2.7%
Net Interest Margin
33%
Customer Loan Growth YoY
27%
Customer Deposit Growth YoY
58%
CASA
31%
Cost-to-Income Ratio
16.7%
Capital Adequacy Ratio
0.7%
NPL Ratio
Note: Figures may not add up due to rounding differences
Classification: Confidential
Management Discussion and Analysis 9M 2026 3
Chairman Statement
"The global economy is undergoing a period of significant transformation, as evolving trade patterns, investment flows and
geopolitical dynamics reshape the international economic landscape. For the region, this presents an opportunity to deepen
economic diversification, strengthen global partnerships and build new avenues for sustainable growth. The UAE has
continued to demonstrate the strength of its economic model, combining policy stability, international connectivity and
sustained investment to reinforce its position as a leading global business and financial centre.
The UAE banking sector has been instrumental in supporting this momentum, facilitating economic activity while maintaining
strong financial fundamentals. Against this backdrop, Mashreq delivered operating income of AED 10.4 billion in the first nine
months of 2026, reflecting the strength of its diversified franchise and the confidence of its clients.
As a Domestic Systemically Important Bank, our responsibility extends beyond financial performance. The Board remains
committed to ensuring that growth is supported by sound governance, disciplined risk management and responsible capital
allocation. These principles will continue to guide Mashreq as we support the UAE's economic ambitions, strengthen
international connectivity and create sustainable value for our shareholders and the wider economy."
H.E. Abdul Aziz Al Ghurair
Chairman of Mashreq
Classification: Confidential
Management Discussion and Analysis 9M 2026 4
GCEO Statement
“Mashreq’s first nine months of 2026 demonstrate our ability to grow the franchise while maintaining strong returns and credit
quality. We delivered record nine-month profit before tax of AED 7.3 billion, up 18% year-on-year, and return on equity of
20.4%. Customer lending grew 33% year-on-year, while our non-performing loan ratio improved to 0.7%.
Our priority is to translate this growth into deeper client relationships and sustainable shareholder value. Supporting UAE
companies and businesses contributing to the UAE economy remains central to our lending and trade finance activities,
alongside serving the needs of our retail and SME clients. Across our international network, we are deepening relationships
and connecting clients to financing, trade and investment opportunities. Selective capital allocation and a diversified funding
base will continue to guide how we grow.
As we scale, our investment in AI and digital capabilities is directed at faster service, simpler customer journeys and greater
productivity. Newton, our award-winning GenAI platform for financial crime investigations, has already lifted investigator
productivity by around 40% while improving the quality and speed of our investigations. We are focused on embedding these
capabilities across the business, supported by strong controls and clear accountability for the value they deliver.
We enter the final quarter focused on profitable growth, disciplined execution and strengthening the capabilities that will
sustain Mashreq’s performance over the long term. I thank our colleagues for their commitment and our clients for their
continued trust.”
Ahmed Abdelaal
Group Chief Executive Officer
Classification: Confidential
Management Discussion and Analysis 9M 2026 5
Performance Review: 9M 2026
“Record nine-month profitability, 33% year-on-year growth in customer loans and improving asset quality, supported by
disciplined capital management.”
Operating income grew 11% year-on-year to AED 10.4 billion in 9M 2026, supported by net interest income on a substantially
expanded loan book and 18% growth in non-interest income. Profit before tax rose 18% to a record AED 7.3 billion, with the
third quarter contributing AED 2.5 billion, 19% more than in Q3 2025.
Total assets grew by AED 100 billion year-on-year to AED 405.6 billion, with customer lending growth of 33% and deposit
growth of 27%. Customer deposits increased by AED 32.2 billion year-to-date, exceeding the AED 26.3 billion increase in
customer loans. The Bank also raised term funding in the international capital markets during the third quarter.
Asset quality strengthened further, with a non-performing loan ratio of 0.7% and coverage of 311%, while the Capital
Adequacy Ratio stood at 16.7%. The nine-month cost-to-income ratio was 31.4%, with continued investment in the Bank's
digital and AI capabilities.
AED 7.3 bn
Net Profit Before Tax
AED 10.4 bn
Operating Income
33%
Total Asset Growth
Classification: Confidential
Management Discussion and Analysis 9M 2026 6
Revenue and Income
Double-digit nine-month revenue growth, with all income lines rising year-on-year and non-interest income growing
18%.
● Operating income grew 11% year-on-year to AED 10.4 billion, with net interest income rising 7% to AED 6.5 billion and
non-interest income 18% to AED 3.9 billion, lifting the non-interest contribution to 37% of the total.
● Net interest income grew on the strength of a 33% expansion in customer loans, with volume growth outweighing the
effect of lower benchmark rates through most of the period. Net interest margin on earning assets was 2.71% for 9M 2026
and 2.67% in the third quarter, as strong deposit inflows were deployed into high-quality liquid securities ahead of their
redeployment into lending. Third-quarter net interest income rose 5% quarter-on-quarter to AED 2.3 billion.
● Net fee and commission income rose 4% year-on-year to AED 1,076 million. Third-quarter net fee income increased
45% quarter-on-quarter to AED 360 million on stronger transaction banking, lending and trade finance activity, and was 7%
lower year-on-year.
● Net investment income almost doubled to AED 599 million as the Bank's equity investment portfolio recorded favorable
fair value movements and gains were realized across investment securities; the third quarter contributed AED 264 million,
against AED 99 million in Q3 2025.
● Insurance, FX and other income increased 13% to AED 2.2 billion, supported by steady insurance-related income and
foreign exchange income from cross-border client flows across Mashreq's international network.
Expenses and Efficiency
Purposeful investment in the platforms, technology and people that underpin Mashreq's growth, with a nine-month
cost-to-income ratio of 31.4%.
● Operating expenses of AED 3.3 billion rose 13% year-on-year, directed towards Gen-AI initiatives, digital platforms and
the talent supporting the Bank's expansion across its markets. Operating income grew 11% over the same period, with the
cost-to-income ratio at 31.4%, compared with 30.7% a year earlier.
● In the third quarter, operating income grew 5% quarter-on-quarter against a 4% rise in expenses, with the cost-to-income
ratio improving to 31.3% from 31.9% in Q2.
Earnings Performance
Record nine-month earnings and a return on equity of 20.4%, with third-quarter profit before tax growing 19% year-
on-year.
● Net profit before tax increased 18% year-on-year to AED 7.3 billion, with AED 635 million of the increase from operating
profit growth of 10% on 11% revenue growth, and AED 482 million from the improvement in impairments, from a charge of
AED 366 million in 9M 2025 to a net release of AED 116 million.
● Third-quarter profit before tax reached AED 2.5 billion, growing 19% year-on-year, with operating profit rising 6%
quarter-on-quarter and 13% year-on-year, and net profit after tax for the quarter growing 21% year-on-year to AED 2.1
billion.
● Net profit after tax rose 18% to AED 6.1 billion, with the effective tax rate stable at 15.7% under the UAE Domestic
Minimum Top-Up Tax (DMTT) and Pillar Two rules, and profit attributable to owners of the parent rising 18% to AED 6.0
billion.
● Return on equity of 20.4%, against 19.8% in 9M 2025, and return on assets of 2.1% were delivered on a shareholders'
equity base that expanded 22% year-on-year to AED 46.0 billion, demonstrating the earnings power of a substantially larger
asset base. Earnings per share rose 17% to AED 28.8.
18%
Non-Interest Income Growth
20.4%
Return on Equity
18%
Net Profit Before Tax Growth
Classification: Confidential
Management Discussion and Analysis 9M 2026 7
Credit Quality
Asset quality strengthened further during a period of strong lending growth, with the non-performing loan ratio at
0.7% and coverage at 311%.
● The non-performing loan ratio improved to 0.7%, from 1.1% at September 2025 and 0.9% at June 2026, as customer
loans grew 33% year-on-year. Non-performing loans also fell in absolute terms during a quarter in which customer lending
expanded 13%, reflecting active credit portfolio management.
● Impairments recorded a net release of AED 116 million in 9M 2026, against a charge of AED 366 million in 9M 2025,
with a charge of AED 7 million in the third quarter, as recoveries on previously written-off exposures continued to offset new
provisioning.
● Coverage rose to 311% from 235% at September 2025 with expected credit loss allowances increasing in step with the
portfolio and providing ample protection against credit deterioration.
Balance Sheet
Total assets grew by AED 100 billion year-on-year to AED 405.6 billion, with customer lending growing 33% year-on-
year and 13% in the third quarter.
● Total assets rose 33% year-on-year and 11% in the quarter to AED 405.6 billion, led by customer lending, investments
and liquid assets.
● Customer loans grew 33% year-on-year to AED 190.6 billion, a net increase of AED 21.5 billion during the third quarter
across wholesale and retail clients, taking total lending to customers and banks to AED 252.3 billion.
● Customer deposits grew 27% year-on-year to AED 237.1 billion, with year-to-date inflows of AED 32.2 billion exceeding
loan growth of AED 26.3 billion. In the third quarter, loan growth of AED 21.5 billion was funded by AED 9.9 billion of deposit
inflows, the USD 500 million senior bond and repurchase agreements, with deposits remaining the core of the Bank’s
funding and the CASA ratio at 58%.
● The investment portfolio expanded 75% year-on-year to AED 83.7 billion, reflecting the deployment of surplus liquidity
into securities.
Capital and Liquidity
A Capital Adequacy Ratio of 16.7%, strengthened by 222 basis points since December 2025 through retained
earnings and the Bank's second Additional Tier 1 issuance of the year.
● The Capital Adequacy Ratio stood at 16.7% at 30 September 2026, against 14.5% at December 2025, with Tier 1 at
15.6% and Common Equity Tier 1 at 13.2%, each comfortably above regulatory requirements including the full D-SIB buffer.
● During the quarter, Mashreq completed a USD 500 million perpetual Additional Tier 1 issuance and a USD 500
million five-year senior bond, both well supported by international investors and extending the maturity profile of the
Bank's funding.
● Liquidity remained strong, with a Liquidity Coverage Ratio of 124% and a Loan-to-Deposit Ratio of 80%.
0.7%
NPL Ratio
27%
Customer Deposit Growth
33%
Total Assets Growth
Classification: Confidential
Management Discussion and Analysis 9M 2026 8
9M 2026 Financial Review
Strong Nine-Month Earnings, with Third-Quarter Operating Income Growing 12% Year-on-Year
Income Statement Highlights
Income Statement (AED mn) 9M’26 9M’25 ΔYoY% Q3’26 Q2’26 Q3’25 ΔQoQ% ΔYoY%
Net Interest Income & Income from Islamic
Financing 6,518 6,080 7% 2,293 2,187 2,119 5% 8%
Fees & Commission 1,076 1,032 4% 360 248 388 45% (7%)
Investment Income 599 311 92% 264 286 99 (8%) 168%
Insurance, FX & Other Income 2,218 1,966 13% 667 679 597 (2%) 12%
Non-Interest Income 3,893 3,309 18% 1,291 1,213 1,083 6% 19%
Total Operating Income 10,411 9,389 11% 3,584 3,400 3,202 5% 12%
Operating Expenses (3,267) (2,882) 13% (1,124) (1,084) (1,015) 4% 11%
Operating Profit 7,143 6,508 10% 2,461 2,316 2,187 6% 13%
Impairment Allowance 116 (366) n.m. (7) 209 (121) n.m. (95%)
Net Profit Before Tax 7,259 6,142 18% 2,454 2,525 2,066 (3%) 19%
Tax (1,137) (961) 18% (380) (404) (357) (6%) 6%
Net Profit after Tax 6,122 5,181 18% 2,074 2,121 1,708 (2%) 21%
Non-Controlling Interest (133) (92) 45% (41) (49) (23) (16%) 76%
Profit attributable to Owners of the Parent 5,988 5,089 18% 2,033 2,072 1,685 (2%) 21%
EPS (AED) 28.8 24.6 17% 9.7 10.0 8.2 (3%) 18%
Key Metrics (%) 9M’26 9M’25 Δbps YoY Q3’26 Q2’26 Q3’25 Δbps
QoQ
Δbps
YoY
Cost to Income Ratio 31.4% 30.7% 70 31.3% 31.9% 31.7% (54) (37)
Return on Assets 2.1% 2.3% (19) 2.0% 2.3% 2.2% (26) (20)
Return on Equity 20.4% 19.8% 64 19.8% 21.6% 19.2%` (171) 62
Net Interest Margin 2.7% 3.2% (50) 2.7% 2.8% 3.2% (11) (52)
● Net fee income of AED 360 million in the third quarter increased 45% quarter-on-quarter, on stronger transaction
banking, lending and trade finance activity across the Bank's markets.
● Investment income of AED 264 million in Q3 2026 came principally from fair value gains on the equity portfolio and
realised trading gains, more than double the Q3 2025 contribution.
● Treasury & Global Markets grew operating income 24% year-on-year to AED 1.6 billion, as a larger investment and
liquidity management book lifted net interest income, while Retail Banking grew 10% to AED 3.7 billion on 20% growth in
non-interest income, with segment assets expanding 54% year-to-date to AED 55.6 billion.
● Wholesale Banking, the largest business at 39% of operating income, grew 3% to AED 4.1 billion, with 14%
growth in non-interest income outweighing lower net interest income.
Note: Figures may not add up due to rounding differences.
Classification: Confidential
Management Discussion and Analysis 9M 2026 9
Balance Sheet Strength
Strong Growth across Lending, Deposits and Investments, Funded by Deposit Inflows and Term
Issuance
Balance Sheet (AED mn) Sep 2026 Sep 2025 ΔYoY% Jun 2026 ΔQoQ% Dec 2025 ΔYTD%
Loans to Customers 190,618 143,085 33% 169,088 13% 164,349 16%
Loans to Banks 61,671 65,380 (6%) 62,043 (1%) 65,721 (6%)
Investments 83,659 47,789 75% 76,145 10% 50,624 65%
Cash & Due from Central Bank 47,001 31,402 50% 41,782 12% 33,532 40%
Other Assets 22,417 17,658 27% 16,506 36% 20,224 11%
Investments in Properties 184 150 23% 184 0% 184 0%
Total Assets 405,550 305,464 33% 365,748 11% 334,634 21%
Customer Deposits 237,090 187,167 27% 227,190 4% 204,895 16%
Balances Due to Banks 36,916 41,123 (10%) 32,793 13% 38,922 (5%)
Loans and Sukuk 23,986 6,267 283% 20,833 15% 15,310 57%
Other Liabilities 30,559 26,438 15% 24,814 23% 27,793 10%
Repo 29,719 5,546 436% 16,073 85% 7,136 316%
Minority Interest 1,315 1,153 14% 1,260 4% 1,202 9%
Shareholder’s Equity 45,966 37,771 22% 42,785 7% 39,374 17%
Total Equity 47,281 38,924 21% 44,045 7% 40,577 17%
Total Equity & Liabilities 405,550 305,464 33% 365,748 11% 334,634 21%
● Customer loans grew 33% year-on-year and 13% quarter-on-quarter to AED 190.6 billion, with strong origination
across wholesale and retail clients, while loans to banks were broadly stable at AED 61.7 billion.
● Customer deposits grew 27% year-on-year and 4% quarter-on-quarter to AED 237.1 billion, with growth in the quarter
weighted towards term deposits. With lending outpacing deposit inflows in Q3 2026, the loan-to-deposit ratio moved to 80%
from 74% at June 2026, in line with December 2025.
● Investments rose 10% quarter-on-quarter to AED 83.7 billion and cash and central bank balances 12% to AED 47.0
billion, as the Bank deployed liquidity into high-quality securities.
● Loans and sukuk rose 15% quarter-on-quarter to AED 24.0 billion, including the USD 500 million five-year senior bond
issued in September, extending the maturity profile of the Bank's funding, while balances due to banks were 10% lower
year-on-year at AED 36.9 billion.
Note: Figures may not add up due to rounding differences.
Classification: Confidential
Management Discussion and Analysis 9M 2026 10
Capital Adequacy
A Strong Capital Position, Sustained Through a Quarter of Significant Asset Growth
Capital Adequacy (%) Sep 2026 Sep 2025 Δbps YoY Jun 2026 Δbps
QoQ
Dec 2025 Δbps YTD
Capital Adequacy Ratio
(CAR – Basel III) 16.7% 16.8% (3) bps 16.9% (19) bps 14.5% 222 bps
Common Equity Tier 1 (CET1) 13.2% 14.2% (100) bps 13.8% (61) bps 12.3% 94 bps
Tier 1 Capital Ratio 15.6% 15.5% 10 bps 15.6% (7) bps 13.4% 218 bps
● The Capital Adequacy Ratio stood at 16.7%, 222 basis points above December 2025, with Tier 1 at 15.6% and CET1
at 13.2%, each comfortably above regulatory requirements including the full D-SIB buffer.
● Retained earnings and the Bank's second Additional Tier 1 issuance of 2026 supported the capital base as
customer lending grew by AED 21.5 billion in Q3. CET1 stood at 13.2%, compared with 13.8% at June 2026.
● The regulatory capital base grew to AED 46.6 billion, from AED 37.5 billion at December 2025
● The Liquidity Coverage Ratio of 124% and Liquid Assets Ratio of 23% remained well above regulatory requirements,
and the Loan-to-Deposit Ratio of 80% leaves the Bank with capacity to continue meeting client demand.
16.7%
Capital Adequacy Ratio
124%
Liquidity Coverage Ratio
80%
Loan-to-Deposit Ratio
Note: Figures may not add up due to rounding differences.
Classification: Confidential
Management Discussion and Analysis 9M 2026 11
Sustaining Growth and Returns
Mashreq’s focus for the remainder of 2026 is to translate its expanded client franchise into sustainable revenue and returns.
Priorities include deepening lending, trade and transaction banking relationships with UAE businesses and clients contributing
to the UAE economy, strengthening the retail and SME franchises, and pursuing opportunities across the Bank’s established
international network.
Investment in AI and digital capabilities will remain directed at simpler customer journeys and greater productivity. Execution
will be supported by disciplined credit selection, diversified funding and prudent capital allocation, with the pace of growth
calibrated to market conditions and client demand.
Awards Q3 2026
Asian Banking & Finance Retail Banking Awards
o Open Banking Initiative of the Year – United Arab Emirates
o Customer Experience Initiative of the Year – UAE
o Fraud Initiative of the Year – UAE
o Digital Transformation of the Year – UAE
o Insurance Product Innovation of the Year – UAE
o Private Bank of the Year – UAE
o Wealth Management Platform of the Year – UAE
o SME Bank of the Year – UAE
Asian Banking & Finance Wholesale Banking Awards
o AI Initiative of the Year – UAE
o Technology and Operations Bank of the Year – UAE
The Digital Banker Middle East and Africa Retail Banking Innovation Awards
o Best Digital Bank – United Arab Emirates
o Best Digital Bank – Middle East
o Best Mobile Banking App of the Year
o Best Hybrid Wealth Management Offering
o Best New Wealth Management Product of the Year
o Best Sustainability Marketing Initiative
o Best Internet Banking Initiative
o Best SME Bank – United Arab Emirates
o Best SME Bank – Middle East
o Outstanding Digital Innovation in SME Banking
Global Finance
o Most Innovative Financial Institution in the Middle East
Global Finance World’s Best Digital Bank Awards:
o Corporate Digital Bank Awards & Consumer Digital Bank Awards
Best Neobank – Middle East
Best Corporate Mobile Banking App – UAE
Best Neobank – UAE
o Best Personal Finance Management (PFM) Solution – UAE
TAB Global Middle East Awards 2026
o Best Customer Loyalty/Rewards Programme in the United Arab Emirates
Classification: Confidential
o Best Digital Consumer Lending Service in the United Arab Emirates
o Best Digital Credit Evaluation Initiative in the United Arab Emirates
CX Live Awards 2026
o Best Customer Journey Mapping
o Best Quality Assurance
Asian Experience Awards 2026, Asian Business Review
o United Arab Emirates Customer Experience of the Year – Banking
MENA Banking Excellence Retail, Digital & SME Awards
o MENA Best Islamic Retail Bank
The Digital Banker’s Global Islamic Finance Awards
o Best Islamic Retail Bank – Middle East and United Arab Emirates
o Best Islamic Neo/Challenger Bank
o Outstanding Advancement in Islamic Banking
Management Discussion and Analysis 9M 2026 13
Disclaimer
This document has been prepared by Mashreq Bank PSC (‘Mashreq’) for informational purposes only. It does not constitute or form part of
any public offer or invitation to subscribe for, purchase or sell any securities or financial instruments, nor should it be construed as investment advice or a recommendation regarding any financial product.
Basis of preparation. The financial information in this document is derived from Mashreq's reviewed but unaudited interim condensed
consolidated financial statements for the nine months ended 30 September 2026, prepared in accordance with International Financial
Reporting Standards (IFRS), and from management information. It should be read together with those financial statements. Comparative
figures for 2025 are audited for the year ended 31 December 2025 and reviewed for interim periods.
Alternative performance measures. This document includes measures that are not defined under IFRS, including return on equity, return
on assets, net interest margin, cost-to-income ratio, non-performing loan ratio, coverage ratio and loan-to-deposit ratio. These measures are
used by management to assess performance, are not a substitute for IFRS measures and may not be comparable with similarly titled
measures used by other institutions. Ratios are annualised where applicable. Regulatory ratios are calculated in accordance with the
requirements of the Central Bank of the UAE.
Rounding. Figures are rounded and totals or percentages may not add up precisely. Percentage changes are calculated on unrounded
figures.
Forward-looking statements. This document may contain forward-looking statements that set out management's current views on future events, financial condition and performance. Such statements are subject to known and unknown risks and uncertainties, including
macroeconomic and geopolitical developments in the region and globally, interest rate and foreign exchange movements, credit and market
conditions, regulatory, tax and accounting changes, and operational and cyber risks, and actual results may differ materially. Mashreq
undertakes no obligation to update or revise such statements except as required by applicable law.
Selective information. This document presents selected information and does not purport to be complete. Some data may be derived from
third-party sources that have not been independently verified, and no representation or warranty is made as to its accuracy or completeness.
Readers should seek independent financial, legal or tax advice appropriate to their circumstances.
Distribution. This document is not for distribution in any jurisdiction where such distribution would be unlawful. Persons into whose
possession it comes are required to inform themselves of and observe any such restrictions.
