Mashreq reported a rise in net profit attributable to shareholders in the first quarter of 2026, supported by investments in AI and double-digit growth in operating income, despite ongoing tensions linked to the Iran conflict.
Net profit at the UAE’s oldest bank climbed 7 percent to AED1.9 billion ($517 million) for the quarter ending March 2026, up from AED1.8 billion in the same period last year.
Operating income increased to AED3.4 billion from AED3.1 billion a year earlier, driven by a 35 percent surge in fees and commission income and a 20 percent rise in non-interest income. However, investment income declined significantly by 57 percent year on year.
Operating expenses rose 15 percent compared to the previous year, reflecting focused investments in generative AI, digital onboarding capabilities, and ongoing expansion of its international presence. Income tax expenses also recorded a 14 percent annual increase.
“The first quarter of 2026 unfolded amid elevated geopolitical tensions in the region, yet it has reinforced the underlying resilience of the UAE and broader GCC economies,” chairman Abdul Aziz Al Ghurair stated in a release on the Dubai Financial Market.
Customer loans and advances surged 33 percent to AED168 billion, while customer deposits expanded by 23 percent to AED210 billion.
Mashreq’s share price remained unchanged at AED227.2 on Thursday morning, although trading was temporarily halted following the financial results announcement. The stock has declined 6 percent over the past year.
Saif Al Ghurair Investment Group holds a 41.75 percent stake in the bank, while Abdullah Ahmed Al Ghurair Investment Co owns 31 percent.
