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Mashreq H1 profit rises 18% to Dh4.8 billion as deposits, lending surge
UAE lender reports record first-half earnings as customer deposits jump 28%, lending grows 26% and return on equity reaches 21%, despite regional uncertainty
- PUBLISHED: Thu 30 Jul 2026, 4:27 PM
Dubai’s banking sector continued to demonstrate resilience in the first half of 2026, with Mashreq announcing record H1 2026 profit on Thursday, up 18 per cent year on year showing strong growth across lending, deposits and income streams despite geopolitical and macroeconomic uncertainty.
Mashreq reported a record profit before tax of Dh4.8 billion for the six months ended June 30, while operating income rose 10 per cent to Dh6.8 billion. Customer deposits increased 28 per cent to Dh227.2 billion and loans and advances grew 26 per cent to Dh169.1 billion, helping expand total assets by 25 per cent to a record Dh365.7 billion.
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The performance comes as UAE banks continue to benefit from economic diversification, robust trade activity and strong liquidity conditions despite heightened uncertainty across regional markets. Mashreq’s return on equity reached 21 per cent, while its capital adequacy ratio improved to 16.9 per cent, well above regulatory requirements.
The bank’s non-interest income climbed 17 per cent to Dh2.6 billion, accounting for 38 per cent of total operating income. Net investment income surged 57 per cent to Dh335 million, while fee and commission income increased 11 per cent to Dh716 million, supported by stronger transaction banking and trade finance activity.
Asset quality also strengthened, with the non-performing loan ratio remaining low at 0.9 per cent. Mashreq recorded a net impairment write-back of Dh122 million during the period, while coverage on non-performing loans increased to 271 per cent from 210 per cent a year earlier. Liquidity remained robust, with a liquidity coverage ratio of 147 per cent and a loan-to-deposit ratio of 74 per cent.
Commenting on the results, Abdul Aziz Al Ghurair, Chairman of Mashreq, 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.”
He added that the quality of growth remained strong, highlighting the bank’s 28 per cent increase in customer deposits, 26 per cent growth in lending and a 17 per cent rise in non-interest income. “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,” Al Ghurair said.
Ahmed Abdelaal, Mashreq Group CEO, said the lender had delivered record profitability during what he described as a challenging operating environment. “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,” Abdelaal said. “Against this backdrop, Mashreq delivered record profit before tax of Dh4.8 billion, up 18 per cent year-on-year, with Q2 profit before tax increasing 28 per cent year-on-year and return on equity at 21 per cent.”
Looking ahead, Abdelaal said the bank would focus on technology-led growth and expanding international business corridors. “We enter the second half focused on disciplined growth, thoughtful capital allocation and continued investment in our people, technology, data and controls,” he said, adding that priorities include growing fee income, advancing artificial intelligence capabilities and deepening trade and payments activity across global markets.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.