AI investments help lift Mashreq’s first-quarter profits

Mashreq said its net profit attributable to owners increased in the first quarter of 2026, as the lender invested in AI and operating income grew by double digits despite the Iran conflict.  

Net profit increased 7 percent to AED1.9 billion ($517 million) in the quarter ended March 2026, compared to AED1.8 billion a year earlier.

Operating income rose to AED3.4 billion during the quarter from AED3.1 billion a year earlier, driven by a 35 percent rise in fees and commission and a 20 percent increase in non-interest income. Investment income fell sharply by 57 percent year on year.

Operating expenses were up 15 percent annually due to targeted investment in generative AI initiatives, digital onboarding infrastructure and the continued build-out of the international network. Income tax expense increased 14 percent year on year.

“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,” chairman Abdul Aziz Al Ghurair said in a statement published on the Dubai Financial Market.

Customer loans and advances increased 33 percent to AED168 billion, while customer deposits grew by 23 percent to AED210 billion. 

Mashreq’s stock ended flat at AED227.2 on Thursday morning, but was closed for trading due to the financial result announcement. Shares are 6 percent down over the past year.

Saif Al Ghurair Investment Group owns a 41.75 percent stake in the lender, with Abdullah Ahmed Al Ghurair Investment Co holding 31 percent.

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