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Dubai-listed Mashreq Bank saw its Q1 2025 net earnings slip by 12% compared to year-ago period as net interest income contracted following rate cuts.
The lender’s net profit after tax reached AED 1.8 billion ($490 million), down from AED 2.041 billion in the same period last year.
Net interest income dipped by 8% year-on-year due to a decline in net interest margin (NIM), which was driven by the UAE Central Bank’s rate adjustment, Mashreq said.
“Net interest income declined… due to a 62bps contraction in NIM to 3.3%, which was driven by a 100bps rate cut by UAE Central Bank.”
Despite the contraction, the bank said its financials remained strong, with operating income in the first three months reaching AED 3.1 billion and loans and advances achieving a 14% year-on-year growth.
Non-interest income also jumped by 16% year-on-year, while customer deposits rose by 10% and non-performing loan ratio improved to 1.3% from 1.4% year-on-year.
“These results reflect the continued strength of our diversified business model and our disciplined execution, even amid a more measured interest rate environment,” said Ahmed Abdelaal, Group CEO.
(Writing by Cleofe Maceda; editing by Seban Scaria)
