Write Hatem Mohamed<\/p>\n\n\n\n
Strong First-Quarter Performance Despite Regional Headwinds Record Balance Sheet Expansion Drives Growth Resilient Operations Across UAE and International Markets Operating Income Growth Driven by Volume and Disciplined Repricing Non-Interest Income Rises 20% to AED 1.4 Billion Insurance, FX and Other Income Grow 26% Cross-Sell Ratio Improves to 41% H.E. Abdul Aziz Al Ghurair: UAE Financial System Shows Structural Resilience He added: The UAE and the broader region\u2019s 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.<\/strong><\/p>\n\n\n\n Group CEO: Diversified Model Anchored in Client Activity He continued: 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.<\/strong><\/p>\n\n\n\n Strategic Focus on AI, Digital Platforms, and Transaction Banking 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\u2019s trade and investment corridors will continue to underpin the volume momentum of recent quarters.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Write Hatem Mohamed Strong First-Quarter Performance Despite Regional HeadwindsMashreq Bank PSC (MASQ), one of the leading financial institutions in the MENA region, reported a strong first-quarter performance with operating income reaching AED 3.4 billion and net profit before tax at AED 2.3 billion for the quarter ended March 31, 2026. The results highlight the resilience […]<\/p>\n","protected":false},"author":3,"featured_media":521,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111,3,38],"tags":[112,113],"class_list":["post-520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-business","category-economics","tag-bank","tag-elmashrq"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/posts\/520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=520"}],"version-history":[{"count":1,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/posts\/520\/revisions"}],"predecessor-version":[{"id":522,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/posts\/520\/revisions\/522"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=\/wp\/v2\/media\/521"}],"wp:attachment":[{"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.alkhabr24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Mashreq Bank PSC (MASQ), one of the leading financial institutions in the MENA region, reported a strong first-quarter performance with operating income reaching AED 3.4 billion and net profit before tax at AED 2.3 billion for the quarter ended March 31, 2026. The results highlight the resilience of Mashreq\u2019s globally diversified franchise amid an extraordinary regional environment, supported by a strong liquidity position and uninterrupted operations across all channels.<\/strong><\/p>\n\n\n\n
Mashreq opened 2026 with exceptional momentum. Customer loans grew 33% year-on-year and total assets expanded 26%. Non-interest income contributed 41% of total operating income, underscoring continued revenue diversification and the strength of fee-generating businesses.<\/strong><\/p>\n\n\n\n
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 functioned without disruption. The bank\u2019s capital position, liquidity, and funding profile remain strong and comfortably above regulatory requirements.<\/strong><\/p>\n\n\n\n
Net interest income grew 4% year-on-year to AED 2.0 billion. The cumulative impact of 175 basis points of UAE Central Bank rate cuts since H2 2024 compressed 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\u2019s low-cost funding base, limiting the impact of rate movements on net interest earnings.<\/strong><\/p>\n\n\n\n
Non-interest income rose 20% year-on-year to AED 1.4 billion, now representing 41% of total operating income. Fees and commissions increased 35% to AED 0.5 billion, driven by higher transaction volumes across trade finance and payments, and increased Financial Markets-related fees from the revamp of the bank\u2019s Treasury and Global Markets platform.<\/strong><\/p>\n\n\n\n
Insurance, FX and other income grew 26% year-on-year to AED 0.9 billion, reflecting stronger cross-border flows across Mashreq\u2019s global corridors. This was anchored by the bank\u2019s 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.<\/strong><\/p>\n\n\n\n
The 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.<\/strong><\/p>\n\n\n\n
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.<\/strong><\/p>\n\n\n\n
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.<\/strong><\/p>\n\n\n\n
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\u2019s operations and financial position remain unaffected by regional developments, with enterprise risk management and business continuity frameworks fully activated across all geographies.<\/strong><\/p>\n\n\n\n