Mashreq Bank posted a pre-tax profit of Dh4.1 billion for the first half of 2025, supported by a 39% rise in non-interest income and a 21% year-on-year increase in loans and advances. Net profit after tax fell 14% to Dh3.5 billion, following the implementation of the UAE’s 15% corporate tax under the global Pillar Two framework.
Total operating income rose 1% year-on-year to Dh6.2 billion, with non-interest income contributing Dh2.2 billion, up 17% from H1 2024.
Investment income grew 55%, while other income rose 56%. Net interest income remained stable quarter-on-quarter at Dh2.0 billion, but declined 6% year-on-year as the net interest margin contracted to 3.2% from 3.8% due to a cumulative 100bps rate cut by the UAE Central Bank since 2024.
Operating profit stood at Dh4.3 billion, while the cost-to-income ratio remained unchanged at 30%, despite an 11.5% increase in expenses linked to continued digital and international expansion. The bank reported a Return on Equity of 20% and Return on Assets of 2.4%.
Total assets reached Dh294 billion, a 16% increase compared to the previous year. Customer deposits rose 15% to Dh177 billion, with current and savings accounts (CASA) accounting for 69% of total deposits. The loan-to-deposit ratio stood at 75%.
Asset quality remained strong, with the non-performing loan (NPL) ratio declining to 1.2% and provision coverage at 210%. The bank booked Dh245 million in impairment charges during the period, equal to a cost of credit of 36 basis points.
Mashreq’s capital adequacy ratio stood at 17.5%, with a Tier 1 ratio of 16.2% and CET1 ratio of 14.8%, providing a buffer above regulatory requirements despite an increase in risk-weighted assets from credit growth.
In June, the UAE Central Bank designated Mashreq as a Domestic Systemically Important Bank (D-SIB), citing the lender’s balance sheet scale and role in the national financial system. The designation brings additional regulatory oversight, including higher capital and liquidity expectations.
The bank continued to expand its footprint in new markets, including Turkey, Oman, Pakistan, and India’s GIFT City, with a strategy focused on cross-border capital flows and client-driven regional banking.
