Mashreq posts a record nine months as recoveries flow in, while FAB’s impairment charges climb and Borouge and DFM feel the conflict’s drag

Mashreq logs double-digit growth in 3Q

Broad-based growth drove a 21% y-o-y rise in bottom-line earnings for our friends at Mashreq, with net income attributable to owners reaching AED 2.1 bn in 3Q 2026, according to the lender’s management discussion and analysis report (pdf). Net income before tax rose 19% y-o-y to AED 2.5 bn during the quarter.

Operating income rose 12% y-o-y to AED 3.6 bn in 3Q on the back of an 8% yearly jump in net interest income to AED 2.3 bn. Non-interest income accounted for a larger share of the top line compared to last year, rising 19% to AED 1.3 bn. The biggest growth came from investment income, which shot up 168% y-o-y to AED 264 mn on equity portfolio gains, offsetting a 7% dip in net fees and commissions.

Mashreq booked a record AED 7.3 bn in income before tax in the first nine months of the year, up 18% y-o-y. Net income after tax rose 18% to AED 6.1 bn. Operating income grew 11% to AED 10.4 bn, with net interest income up 7% to AED 6.5 bn and non-interest income up 18% to AED 3.9 bn, taking its share of the total to 37%.

Behind the numbers: Lending growth and lower provisions drove the increase. Customer loans grew 33% y-o-y to AED 190.6 bn, with strong lending to both wholesale and retail clients. Impairments swung to a net release of AED 116 mn in 9M, compared to a charge of AED 366 mn a year earlier, as recoveries on loans previously written off outpaced new provisions. That swing accounted for AED 482 mn of the rise in pre-tax income. Operating expenses rose 13% to AED 3.3 bn, mainly on investment in AI, digital platforms, and staff, taking the cost-to-income ratio to 31.4% from 30.7%.

FAB’s net income grows 6.5% y-o-y, beating analyst estimates

First Abu Dhabi Bank (FAB) posted net income of AED 5.7 bn in 3Q 2026, up 6.5% y-o-y and flat q-o-q, beating analysts’ estimates, according to the lender’s management discussion and analysis report (pdf). Operating income rose 9.3% y-o-y to AED 10.21 bn. Net interest income fell 6.2% q-o-q as net interest margin narrowed to 1.85% from 1.99%, while fees, FX, and investment income picked up the slack, lifting non-interest income 9.5% q-o-q.

On a 9M basis, net income rose 2.8% y-o-y to AED 16.5 bn, well behind the 7.5% growth in operating income to AED 29.7 bn. Net impairment charges climbed 33.3% y-o-y to AED 3.1 bn, which the bank attributed to a cautious approach to the “evolving risk environment.” Net interest income grew 11.1% y-o-y on higher volumes, with net loans up 10% YTD to AED 679 bn, credited to growth in wholesale and retail lending.

REMEMBER- Impairments have weighed on UAE lenders all year. Emirates NBD, FAB, and ADCB have all booked extra impairment charges in response to the regional conflict, with FAB alone setting aside AED 300 mn in management overlays — provisions beyond what its standard models required. FAB’s nine-month charge includes a AED 350 mn management overlay for conflict-related credit risk, the bank’s financial statements (pdf) showed. That’s smaller than the AED 650 mn it reported at the half-year mark.

Land leases continue to prop up Tecom’s bottom line

Dubai business district operator Tecom Group reported a 12% y-o-y increase in recurring net income to AED 417 mn in 3Q 2026, while revenue rose 12% to AED 809 mn, according to the company’s earnings release (pdf). EBITDA grew 11% y-o-y to AED 627 mn. In the first nine months, recurring net income rose 10% y-o-y to AED 1.2 bn on revenue of AED 2.3 bn, up 11%.

Land leases did most of the work in 3Q, with revenue from the segment jumping 35% y-o-y to AED 202 mn, which the company attributes to expansion of its industrial land portfolio. Commercial revenue grew 6% y-o-y to AED 390 mn and industrial revenue rose 11% to AED 125 mn. Occupancy across its commercial and industrial assets held at 97%, while customer retention rose to 95% from 93% a year earlier.

Logistics costs, lower sales eat into Borouge’s 3Q income

Borouge’s net income fell 63% y-o-y to USD 109 mn in 3Q 2026, while its revenue was flat at USD 1.4 bn, according to its management discussion and analysis (pdf). The petrochemicals company sold 21% less than a year earlier, as plants ran at 76% utilization on tight ethane supply. Higher prices made up for the lost volume on the top line but not on income. Selling and distribution costs doubled to USD 220 mn as Borouge shipped everything via alternative routes to avoid the Strait of Hormuz, and propylene feedstock costs climbed.

On a 9M basis, net income fell 41% y-o-y to USD 455 mn on revenue of USD 4.03 bn, down 4%. Sales volumes fell 19% y-o-y, partly offset by a 19% rise in average selling prices. The quarter-on-quarter picture is better: sales volumes rose 22% from 2Q as ethane supply recovered, but average selling prices fell 19% after the spike in 2Q, taking net income down 43% q-o-q.

Things are looking up from here: Borouge expects 4Q adjusted EBITDA to come in “significantly higher” than 3Q, with utilization reaching about 90% in October and polyolefin benchmark prices above 3Q levels. It paid an interim dividend of 8.1 fils per share in September and reaffirmed its 16.2 fils annual payout, which it has committed to as a minimum until at least 2030.

DFM results dip in 3Q

The Dubai Financial Market (DFM) saw its net income slide 7% y-o-y to AED 130.3 mn in 3Q, as fee income dropped 11.7%, according to the Dubai stock exchange’s financials (pdf) and an earnings release (pdf). Trading commission fees fell 10.5% to AED 101.4 mn, and clearing, settlement, and depositary fees fell 29% to AED 15.3 mn. A 16% rise in investment income to AED 64.4 mn softened the blow, so total income slipped only 4.1% to AED 196.2 mn.

The third quarter cooled after a strong first half. For the first nine months, fee income from DFM’s exchange operations rose 24.8% y-o-y to AED 511.2 mn, as trading commission fees climbed 26.4% to AED 392.1 mn. Net income still fell 36.9% to AED 537.7 mn, because 9M 2025 included a one-off AED 461.9 mn gain from the sale of an investment property. Excluding that gain, pre-tax income rose about 25% y-o-y to AED 586.4 mn. Total income fell 31.1% to AED 753.2 mn.

Average daily trading value was up 25% y-o-y to AED 883 mn, bringing the total traded value to AED 162 bn, up 22%. The DFM rounded out 9M with a market capitalization of AED 993 bn, while 55.5k new investors joined the market, 72% of whom were foreigners.