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Mashreq posts strong Q1 results as profits, loans and deposits rise despite regional tensions
UAE lender reports double-digit growth in revenue and profitability, supported by strong loan growth, diversified income streams and resilient asset quality despite a volatile regional backdrop
- PUBLISHED: Thu 30 Apr 2026, 5:57 PM
Mashreq delivered a robust start to 2026, reporting strong growth in profitability, lending and deposits in the first quarter, underpinned by a diversified revenue base, resilient asset quality and uninterrupted operations despite heightened geopolitical tensions in the region.
For the three months ended March 31, the UAE-based lender posted operating income of Dh3.4 billion, while net profit before tax rose to Dh2.3 billion. Return on equity stood at around 20 per cent, highlighting the bank’s ability to sustain strong returns even as interest margins remained under pressure from earlier rate cuts.
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The results came against what Mashreq described as a complex and volatile operating environment, with regional conflict shaping market sentiment during the quarter. However, the bank said the resilience of the UAE and broader GCC economies, supported by disciplined fiscal management and non-oil growth, provided a stable backdrop for banking activity.
Abdul Aziz Al Ghurair, Chairman of Mashreq, said the quarter reaffirmed the strength of the region’s financial system and the bank’s operating model. “Within this context, Mashreq delivered a robust performance in the first quarter, with operating income of Dh3.4 billion and a return on equity of 20 per cent, reflecting the strength of its diversified business model and the consistency of its execution,” he said.
Balance sheet growth remained a key feature of the quarter. Customer loans increased by 33 per cent year-on-year, while deposits rose 23 per cent to Dh210 billion, helping total assets expand to around Dh344 billion. Mashreq maintained a strong low-cost funding base, with its current and savings account ratio at 63 per cent, supporting margins in a lower-rate environment.
While net interest margin narrowed to about 2.7 per cent, the impact was offset by volume growth and a sharp rise in non-interest income, which accounted for 41 per cent of total operating income. Fees and commissions climbed 35 per cent year-on-year, driven by higher transaction volumes in trade finance and payments, while income from insurance, foreign exchange and other activities rose 26 per cent amid stronger cross-border flows.
Asset quality remained among the strongest in the sector, with the non-performing loan ratio at 0.9 per cent despite rapid loan growth. Impairment charges stayed low, reflecting what the bank described as disciplined underwriting and active portfolio management across retail, SME and wholesale segments.
Ahmed Abdelaal, Group Chief Executive Officer of Mashreq, said the bank’s focus during the quarter was on maintaining clarity and continuity for clients as market conditions evolved. “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,” he said.
Capital and liquidity levels remained comfortably above regulatory requirements. The bank’s capital adequacy ratio strengthened to 15.8 per cent, supported in part by the issuance of a USD 500 million Additional Tier 1 instrument during the quarter, which attracted strong investor demand.
Looking ahead, Mashreq said it enters the remainder of 2026 with solid momentum, a strengthened capital base and a continued focus on revenue diversification, digital investment and disciplined risk management, positioning it to navigate ongoing uncertainty while supporting clients and economic activity across the region.
