Mashreq nine-month pre-tax profit rises 18% to a record AED 7.3 billion

Mashreq Bank PSC (MASQ) reported record profit before tax of AED 7.3 billion for the nine months to Wednesday, September 30, up 18% on the same period a year earlier.

Operating income rose 11% to AED 10.4 billion, the bank said on Thursday, with growth in operating profit and an improvement in impairments supporting earnings.

Net profit after tax rose 18% to AED 6.1 billion, with the effective tax rate stable at 15.7%. Earnings per share rose 17% to AED 28.8.

Third quarter profit before tax reaches AED 2.5 billion

Profit before tax in the third quarter was AED 2.5 billion, 19% higher than in the third quarter of 2025. Operating profit rose 6% on the previous quarter and 13% on the year.

Of the nine-month increase in profit before tax, AED 635 million came from operating profit growth of 10%, on revenue growth of 11%.

A further AED 482 million came from impairments, which moved from a charge of AED 366 million in the first nine months of 2025 to a net release of AED 116 million.

Income lines: net interest up 7%, non-interest up 18%

Net interest income rose 7% to AED 6.5 billion. Non-interest income rose 18% to AED 3.9 billion, lifting its share of total operating income to 37%.

Net investment income almost doubled to AED 599 million, which the bank attributed to favourable fair value movements on its equity portfolio and gains realised across investment securities.

Net fee and commission income rose 4% to AED 1,076 million. In the third quarter, fee income of AED 360 million was 45% higher than in the second quarter but 7% lower than a year earlier.

Operating expenses rose 13% to AED 3,267 million, directed towards generative AI initiatives, digital platforms and staff. The cost-to-income ratio was 31.4%, against 30.7% a year earlier. Return on equity was 20.4%, against 19.8%.

Customer loans up 33% to AED 190.6 billion

Customer loans grew 33% year-on-year to AED 190.6 billion, including a net increase of AED 21.5 billion in the third quarter. Customer deposits grew 27% to AED 237.1 billion.

Total assets grew by AED 100 billion year-on-year to AED 405.6 billion. The share of current and savings account balances in deposits (CASA) was 58%.

The bank’s net interest margin on earning assets was 2.71% for the nine months, with the figure for the third quarter at 2.67%.

The non-performing loan ratio improved to 0.7%, from 1.1% at September 2025 and 0.9% at June. Coverage rose to 311% from 235% a year earlier.

The Capital Adequacy Ratio stood at 16.7% at September 30, against 14.5% at December 2025. Its Liquidity Coverage Ratio was 124% and its loan-to-deposit ratio was 80%.

In the third quarter, Mashreq completed a USD 500 million perpetual Additional Tier 1 issuance and a USD 500 million five-year senior bond.

Retail Banking grew operating income 10% to AED 3.7 billion, with segment assets up 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.

Treasury and Global Markets grew operating income 24% to AED 1.6 billion.

Group chief executive officer Ahmed Abdelaal said the bank’s priority was to turn growth into deeper client relationships. Supporting UAE companies remained central to its lending and trade finance, he said, alongside retail and small business clients.

He said the bank’s generative AI platform Newton, used for financial crime investigations, had lifted investigator productivity by around 40%.

For the rest of the year, the bank said it would focus on lending, trade and transaction banking with UAE businesses, retail and small business clients, and its international network, with growth calibrated to market conditions and client demand.

The figures come from reviewed but unaudited interim condensed consolidated financial statements prepared under International Financial Reporting Standards, which the bank says should be read together with its full statements.