Posted inBanking & Insurance

Mashreq Posts 7% Profit Rise in Q1 FY26 on AI Gains

Mashreq reported a 7% uptick in net profits owing to AI investments and operating income in Q1, FY26

Mashreq Posts 7% Profit Rise in Q1 FY26 on AI Gains
Mashreq Posts 7% Profit Rise in Q1 FY26 on AI Gains

Mashreq reported a 7% increase in net profit attributable to owners for Q1 in FY26 as the UAE-based bank invested in artificial intelligence while operational income grew significantly despite geopolitical headwinds.

The bank’s net profit rose by 7% to Dh 1.9B (approximately $517M) for the quarter ending March 2026, compared to Dh 1.8B during the same period last year.

Operating income also witnessed a robust increase, reaching Dh 3.4B: up from Dh 3.1B in FY25. This was fuelled by a 35% rise in fees and commissions alongside a 20% growth in non-interest income.

However, investment income saw a sharp decline of 57% YoY. The bank’s operating expenses rose by 15% annually, attributed to strategic investments in generative AI, enhancements in digital onboarding infrastructure, and expansion of its international network.

Income tax expenses surged by 14% compared to last year.

Customer loans and advances increased by 33% to Dh 168B while customer deposits grew by 23% to Dh 210B.

The ownership structure of the bank features Saif Al Ghurair Investment Group with a 41.75% stake, complemented by 31% held by Abdullah Ahmed Al Ghurair Investment Co.


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