Mashreq records AED 3.4 billion in revenue in Q1 2026, with return on equity reaching 20%

Cairo, Egypt, 30 April 2026:

 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.

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.

Strong Operating Income growth reflecting broad-based volume expansion, disciplined asset repricing and the continued diversification of the revenue mix.

• Net Interest Income grew 4% year-on-year to AED 2.0 billion. While the cumulative impact of 175 basis points of UAE Central Bank rate cuts since H2 2024 continued to compress margins, with NIM declining to 2.7%, this was more than offset by 33% growth in the customer loan book. The CASA ratio of 63% continued to anchor the Bank’s low-cost funding base, containing the impact of rate movements on net interest earnings. NIM compression moderated sequentially as the majority of the rate-cut cycle has now been absorbed through asset repricing.

• Non-interest income rose 20% year-on-year to AED 1.4 billion, now at 41% of total operating income.

• Fees and Commissions increased 35% year-on-year to AED 0.5 billion, driven by higher transaction volumes across trade finance and payments, increased Financial Markets-related fees and commissions from the revamp of the Bank’s Treasury and Global markets platform and client engagement across the Bank’s transactional banking activities.

• Insurance, FX and Other Income grew 26% year-on-year to AED 0.9 billion, reflecting stronger cross-border flows across Mashreq’s global corridors, anchored by the Bank’s position as the only non-US bank in the region with direct US dollar clearing capability.

• Net Investment income was AED 48 million for the quarter, lower year-on-year, as mark-to-market gains moderated in the current rate environment and against a Q1 2025 comparable that included elevated realized gains.

• Cross-Sell Ratio increased to 41%, approximately 350 basis points higher year-on-year, with continued multi-product adoption and deepening relationships across retail, SME and wholesale segments.

H.E. Abdul Aziz Abdulla Al Ghurair, , Chairman, Mashreq commented: “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.”

Group Chief Executive Officer, Mashreq said: “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.”

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.

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