Dubai – Mashreq Bank PSC (MASQ) reported its financial results for H1 2025.

Key Metrics:

Net Profit Before Tax:

AED 4.1 billion

Revenue

AED 6.2 billion

Operating Profit

AED 4.3 billion

YoY Loan & Advances Growth

21%

YoY Customer Deposits Growth: 15%

(CASA 69%)

Return on Equity 20%

Return on Assets 2.4%

Net Interest Margin

3.2%

Cost to Income Ratio

30%

NPL to Gross Loan Ratio

1.2%

NPL Coverage  Ratio

210%

Capital Adequacy Ratio

17.5%

Note: Figures may not add up due to rounding differences

Mashreq’s operating income reached AED 6.2 billion in H1 2025, reaffirming the Bank’s position as one of the region’s most resilient and forward-looking financial institutions. The performance reflects Mashreq’s continued ability to generate strong, broad-based growth despite a softening interest rate environment, supported by double-digit increases in both lending and non-interest income. Return on Equity remained robust at 20%, while the industry-leading Cost-to-Income ratio of 30% highlights ongoing efficiency even amid accelerated investment in digital transformation, AI-enabled capabilities, and strategic international market expansion. These results underscore Mashreq’s disciplined execution, diversified revenue model, and long-term focus on sustainable value creation for clients and shareholders alike.

Revenues

Robust topline performance underpinned by diversified growth, pricing discipline and a superior funding mix.

  • Operating income rose to AED 6.2 billion in H1 2025, driven by 21% year-on-year growth in loans and robust contributions from investment and other non-interest income streams—highlighting Mashreq’s ability to capture value across cycles and deliver quality growth amid moderating interest rates.
  • Net interest income increased 1% quarter-on-quarter to AED 2.0 billion in Q2 2025, as sustained volume growth and disciplined asset repricing offset the cumulative 100bps rate cut implemented since 2024. Net Interest Margin (NIM) remained strong at 3.2%, supported by continued enhancement of Mashreq’s funding profile, with the CASA ratio improving to a market-leading 69%, up from 62% year-on-year.
  • Non-interest income expanded 17% year-on-year, propelled by a 55% surge in investment income and a 56% increase in other income streams. The Cross-Sell Ratio rose to 36%, a 5% year-on-year improvement, reinforcing the strength of Mashreq’s relationship-led strategy and deepening client penetration across businesses.

Expenses

Strategic investment in digital transformation, global talent, and international client platforms—delivered with best-in-class cost efficiency.

  • Operating expenses increased by 11.5% year-on-year, reflecting focused investments to support Mashreq’s international expansion, upgrade digital infrastructure, and enhance client interface channels across all key markets. This includes continued advancement of next-generation platforms, automation, and GenAI-led initiatives, as well as targeted recruitment and upskilling of high-impact talent.
  • Despite elevated investment activity, the cost-to-income ratio remained best-in-class at 30%, underscoring Mashreq’s operational discipline, scalable technology backbone, and sustained ability to drive efficiency while executing its strategic growth roadmap.

Net Profit

Resilient bottom-line delivery driven by core strength, global expansion, and capital efficiency—despite higher tax headwinds.

  • Profit Before Tax reached AED 4.1 billion in H1 2025, underscoring the continued strength of Mashreq’s core banking franchise and the momentum across key business lines. This performance was achieved despite a softer rate environment, normalization of risk costs, and sustained strategic investments in digital innovation and international expansion across Türkiye, Oman, and Pakistan.
  • Net Profit After Tax stood at AED 3.5 billion, reflecting Mashreq’s ability to deliver solid earnings and maintain profitability in the face of a significantly higher tax burden following the implementation of the UAE’s 15% global minimum tax under the Pillar Two framework.
  • Return on Equity (ROE) remained strong at 20%, illustrating the Bank’s ongoing ability to generate superior shareholder returns through disciplined capital allocation, a capital-light operating model, and diversified revenue streams.
  • Mashreq’s earnings profile remains balanced and resilient, demonstrating its capacity to sustain profitability while continuing to invest in long-term growth across digital platforms, strategic markets, and client-centric verticals.

Asset Quality

Exceptional credit discipline and proactive risk management sustain sector-leading asset quality

  • Provision charges increased to AED 245 million in H1 2025, reflecting Mashreq’s prudent and forward-looking risk posture in light of continued global macroeconomic and geopolitical uncertainties, despite robust double-digit loan growth.
  • The Non-Performing Loan (NPL) ratio further improved to 1.2%, down from 1.3% year-on-year, reaffirming Mashreq’s market-leading asset quality and underscoring the effectiveness of its disciplined underwriting and early-warning risk frameworks.
  • The Coverage Ratio remained exceptionally strong at 210%, highlighting the Bank’s conservative provisioning strategy and its strong capacity to absorb potential credit stress, even under evolving operating conditions.

Balance Sheet

Sustained double-digit growth anchored in strong client demand (loans up 21%), funding depth (CASA 69%), and strategic lending across key sectors.

  • Mashreq’s balance sheet expanded by 16% year-on-year in H1 2025, reflecting healthy underlying demand across priority markets and continued momentum in both wholesale and retail banking segments.
  • Loans and advances—including to customers and banks—grew by a solid 21% year-on-year, with growth concentrated in strategically important sectors such as residential mortgages, manufacturing, construction, and financial institutions, reinforcing the Bank’s role in supporting real economy sectors.
  • Customer deposits reached AED 178 billion, up 15% year-on-year, driven by deepening client relationships and continued franchise strength. Notably, the CASA ratio rose to 69% of total deposits, providing a stable and low-cost funding base that enhances both profitability and liquidity resilience.

Liquidity and Capital

Industry-leading capitalization and strong liquidity buffers reinforced by strong earnings underpin resilience and investor confidence in Mashreq’s credit strengthen.

  • Mashreq maintained a robust liquidity position, with a Liquid Assets Ratio of 30.6%, a Loan-to-Deposit Ratio of 75%, and a Liquidity Coverage Ratio (LCR) of 120%—well above regulatory requirements—reinforcing the Bank’s conservative liquidity posture and capacity to navigate dynamic market conditions.
  • The Bank’s capitalization profile remains among the strongest in the industry, supported by sustained profitability and prudent capital management. As of H1 2025, the Capital Adequacy Ratio (CAR) stood at 17.5%, with a Tier 1 Capital Ratio of 16.2% and a Common Equity Tier 1 (CET1) Ratio of 14.8%—providing a significant buffer above minimum regulatory thresholds and positioning the Bank to support growth while managing risk effectively.
  • Mashreq further strengthened its funding base through a successful USD 500 million Sukuk issuance, deepening its access to international capital markets and reaffirming its leadership in Islamic finance. The issuance—priced at UST +105bps with a fixed profit rate of 5.03% per annum—was 6x oversubscribed despite market volatility, drawing interest from 90 global investors and reflecting deep confidence in Mashreq’s credit fundamentals and strategic direction.

D-SIB Designation

Recognition of systemic importance reinforces Mashreq’s role as a cornerstone of the UAE financial system

  • In H1 2025, the Central Bank of the UAE formally designated Mashreq as a Domestic Systemically Important Bank (D-SIB)—a testament to the Bank’s scale, financial strength, and critical role in the stability and advancement of the national banking ecosystem.
  • This designation brings enhanced regulatory expectations, including elevated standards for stress testing, capital, liquidity, and risk governance. Mashreq is already well-positioned to meet and exceed these requirements, with a Capital Adequacy Ratio that surpasses fully-loaded D-SIB thresholds by a comfortable 25% margin as of June 30, 2025.
  • The D-SIB status underscores the trust placed in Mashreq by regulators, clients, and stakeholders, and reinforces the Bank’s long-term strategic importance to the UAE’s economic transformation and financial resilience.

H.E. Abdul Aziz Al Ghurair, Chairman, Mashreq:

The first half of 2025 marked another period of exceptional performance and strategic momentum for Mashreq. Our results are a reflection of the trust our clients place in us, the strength and clarity of our long-term strategy, and our unwavering commitment to driving sustainable economic transformation across the UAE and the broader region.

While global macroeconomic uncertainty continues to pose challenges, the GCC stands out as a beacon of resilience, supported by strong policy frameworks, fiscal prudence, and a rapidly diversifying non-oil economy. This strength is clearly mirrored in the performance of the UAE banking sector, which saw total investments exceed AED 760 billion by March of this year.

Mashreq’s trajectory is firmly aligned with this regional momentum. Our continued ability to deliver double-digit growth, expand internationally, and lead with innovation underscores our differentiated value proposition and our disciplined execution across cycles. We remain resolute in our ambition to create enduring value by empowering clients, championing responsible finance, and building a digitally advanced, globally connected financial institution.

As the UAE economy maintains its upward trajectory, Mashreq will continue to be a key enabler—supporting inclusive growth, advancing national priorities, and reinforcing the country’s position as a global financial hub.

Ahmed Abdelaal, Group Chief Executive Officer, Mashreq

Mashreq’s performance in the first half of 2025 reinforces the strength of our business model and our disciplined approach to sustainable, high-quality growth. Despite a more moderated rate environment and evolving global dynamics, we continued to deliver robust results—underpinned by strong client activity, a diversified earnings profile, and our unwavering commitment to innovation, efficiency, and value creation.

Our investment strategy remains sharply focused on future-proofing the organization. We are making measured yet impactful investments in upgrading our technology infrastructure, expanding our digital and international presence, and forming strategic partnerships that allow us to deliver best-in-class client experiences across all segments. These efforts are designed not just to enhance competitiveness but to embed long-term resilience and scalability into our operations.

At the same time, we have maintained strict cost discipline. Our ability to absorb continued investment—without compromising our industry-leading cost-to-income ratio of 30%—speaks to the strength of our operational model and our relentless focus on efficiency.

Our strategic expansion into high-growth markets such as Pakistan, Türkiye and Oman, along with our entry into GIFT City in India, marks a pivotal step in building Mashreq’s global relevance and connectivity. These initiatives are aligned with our ambition to support cross-border capital flows and to serve our clients across key economic corridors with tailored, high-impact financial solutions.

As we look ahead, our priorities remain clear: to scale responsibly, partner strategically, and invest intelligently—delivering long-term value to our shareholders while continuing to lead with innovation, discipline, and purpose.

Financial Review

Income Statement Highlights (AED mn)

  

Quarterly Trend

1H

Δ %

 

2Q

1Q

2Q

Δ %

2025

2024

YoY

2025

2025

2024

QoQ

YoY

Net Interest Income & Income from Islamic Financing

3,961

4,226

-6%

 

1,995

1,967

2,082

1%

-4%

Fees & Commission

644

884

-27%

 

296

348

336

-15%

-12%

Investment Income

213

137

55%

 

100

112

70

-11%

44%

Insurance, FX & Other Income

1,370

881

56%

 

676

694

499

-3%

36%

Non-Interest Income

2,226

1,902

17%

 

1,072

1,154

904

-7%

19%

Total Operating Income

6,187

6,127

1%

 

3,067

3,120

2,986

-2%

3%

Operating Expenses

-1,866

-1,673

12%

 

-948

-918

-834

3%

14%

Operating Profit

4,321

4,454

-3%

 

2,119

2,202

2,152

-4%

-2%

Impairment Allowance

-245

45

-645%

 

-144

-101

83

42%

-274%

Net Profit Before Tax

4,076

4,499

-9%

 

1,975

2,101

2,234

-6%

-12%

Tax

-604

-447

35%

 

-295

-309

-223

-5%

32%

Net Profit after Tax

3,472

4,052

-14%

 

1,680

1,792

2,011

-6%

-16%

Non-Controlling Interest

-68

-50

37%

 

-32

-36

-16

-11%

101%

Profit attributable to Owners of the Parent

3,404

4,003

-15%

 

1,648

1,756

1,995

-6%

-17%

EPS (AED)

16.4

19.7

-17%

 

7.9

8.5

9.9

-7%

-21%

          

Key Metrics (%)

1H

Δ bps

 

2Q

1Q

2Q

Δ bps

2025

2024

YoY

 

2025

2025

2024

QoQ

YoY

Cost to Income Ratio

30%

27%

286

 

31%

29%

28%

149

297

Return on Assets

2.4%

3.3%

-86

 

2.3%

2.5%

3.2%

-23

-93

Return on Equity

20%

28%

-743

 

19%

21%

27%

-140

-796

Note: Figures may not add up due to rounding differences

  • Net Interest Income rose 1% quarter-on-quarter but declined 6% year-on-year due to a 61bps contraction in NIM to 3.2%, which was driven by a 100bps rate cut by UAE Central Bank.
  • Non-Interest Income representing 36% of Total Operating Income witnessed a 17% year-on-year growth in H1 2025 to AED 2.2 billion supported by strong growth in investment (+55% year-on-year) and other income (+56% year-on-year).
  • Total Operating Income increased by 1% to AED 6.2 billion in H1 2025 supported by non-interest income and double-digit growth in the loan and advances.
  • Operating expenses grew by 11.5%, reflecting continued investment in digital innovation and strategic business expansion.
  • Impairment allowances remained low at AED 245 million in H1 2025 (cost of credit of 36bps), reflecting the strong quality of the loan book and underwriting standards.
  • Income tax expense of AED 604 million in H1 2025 up by 35% year-on-year impacted the net profit after tax, which saw a decline of 14% to reach AED 3.5 billion in H1 2025, with a strong ROE of 20%.

Balance Sheet Highlights (AED mn)

Jun

Jun

Δ %

Jun

Mar

Dec

Δ %

2025

2024

YoY

2025

2025

2024

QoQ

YTD

 

 

 

 

 

 

 

 

 

Loan to Customers

       134,120

        113,827

18%

       134,120

125,817

        124,758

7%

8%

Loans to Banks

         63,047

          49,142

28%

         63,047

55,266

          52,272

14%

21%

Investments

         36,704

          39,198

-6%

         36,704

37,578

          36,422

-2%

1%

Cash & Due from Central Bank

         46,096

          37,572

23%

         46,096

41,423

          40,593

11%

14%

Other Assets

         13,518

          13,464

0%

         13,518

12,467

          13,258

8%

2%

Investments in Properties

              150

               264

-43%

              150

152

               152

-1%

-1%

Total Assets

       293,635

        253,467

16%

       293,635

272,703

        267,453

8%

10%

         

Customer Deposits

       177,645

        153,964

15%

       177,645

171,442

        160,940

4%

10%

Balances due to banks

         48,534

          41,421

17%

         48,534

42,905

          43,374

13%

12%

Loans and Sukuk

           5,202

            4,604

13%

           5,202

3,613

            3,903

44%

33%

Other Liabilities

         21,600

          19,114

13%

         21,600

19,397

          19,381

11%

11%

Repo

           3,659

            1,109

230%

           3,659

-

            2,076

-

76%

Minority Interest

           1,120

            1,003

12%

           1,120

1,078

            1,067

4%

5%

Total Equity

         35,876

          32,252

11%

         35,876

34,269

          36,713

5%

-2%

Total Equity & Liabilities

       293,635

        253,467

16%

       293,635

272,703

        267,453

8%

10%

.

      

YoY%

 

Key Metrics (%)

Jun

Jun

Δ bps

Jun

Mar

Dec

Δ bps

2025

2024

YoY

2025

2025

2024

QoQ

YTD

   

 

    

 

CAR (Capital Adequacy Ratio - Basel III)

17.5%

19.5%

(190)

17.5%

18.5%

17.5%

(90)

5

CET1 (Common Equity Tier 1) ratio

14.8%

15.7%

(90)

14.8%

15.4%

14.5%

(64)

30

Tier 1 Ratio

16.2%

17.3%

(115)

16.2%

16.9%

16.0%

(78)

16

Note: Figures may not add up due to rounding differences

  • Total Assets grew to AED 294 billion in H1 2025, marking a 16% year-on-year and 10% year-to-date increase, due to continued credit growth and liquidity optimization
  • The growth in the balance sheet is supported by year-on-year growth in total assets of wholesale banking segment by 23% to AED 161 billion and retail banking segment by 12% to AED 35 billion
  • Customer Deposits increased 15% year-on-year to AED 177 billion with CASA accounting for 69% of total deposits
  • NPL Ratio stood at 1.2% and remained the lowest in the industry
  • Strong capitalization in H1 2025 with Capital Adequacy Ratio of 17.5%, CET1 ratio of 14.8% and Tier 1 ratio of 16.2%, however slightly impacted by strong credit growth resulting in increased Risk Weighted Assets

Looking Ahead

Mashreq’s first-half performance in 2025 reaffirmed the strength of its diversified business model, the trust it commands across domestic and international markets, and its disciplined approach to strategic execution.

Looking ahead to the remainder of the year, the Bank will remain focused on driving innovation-led growth, enhancing customer experience across all segments, and expanding its presence in priority markets. Recent entries into Turkey and Oman mark the beginning of a broader regional expansion strategy, with Mashreq aiming to deepen its international footprint through a targeted, client-centric approach.

Supported by a strong capital and liquidity base, Mashreq is well-positioned to deliver sustainable and balanced growth, while preserving its leading asset quality and continuing to generate superior returns for shareholders.

Awards:

  • Ranked #23 on the Forbes Middle East Top 100 Listed Companies 2025
  • The Banker – Top 1000 World Banks
    • Best Performing Bank in the UAE for the 3rd consecutive year 
    • #1 in the Middle East for Return on Capital (3rd consecutive year)
    • #1 in the Middle East for Return on Assets (2nd consecutive year)
  • S&P Global Market Intelligence
    • Best-performing publicly traded bank in the Middle East in 2025
  • MEED MENA Banking Excellence Awards
  • Excellence in Sustainable Investment – Corporate & Investment Banking Group
  • Best Compliance and Regulatory Initiative – Eagle Eye Platform
  • Asian Banking & Finance Awards
  • New Consumer Lending Product of the Year - UAE
  • Customer Experience Initiative of the Year - UAE
  • Digital Transformation of the Year - UAE
  • Open Banking Initiative of the Year - UAE
  • Insurance Product Innovation of the Year - UAE
  • Private Bank of the Year – UAE
  • Wealth Management Platform of the Year – UAE
  • SME Bank of the Year – UAE
  • SME Digital Innovation of the Year – UAE
  • Global Finance
  • Top Financial Innovation for 2025 - Pulse Mobile App
  • Euromoney Awards for Excellence
  • The Middle East's Best Bank for Large Corporates
  • The Middle East's Best Digital Bank for Large Corporates
  • The Middle East's Best Bank for Homeowners
  • Bahrain's Best International Bank
  • Bahrain's Best Bank for Large Corporates
  • The UAE's Best Bank for Large Corporates
  • The UAE's Best Bank for Homeowners
  • Euromoney Private Banking Award for 2025
  • United Arab Emirates' Best for Family Office Services for the 2nd consecutive year.
  • Euromoney Trade Finance Survey:
  • Best Trade Finance Bank in the Middle East
  • Best Trade Finance Bank in Qatar
  • Best Trade Finance Bank for Products, Client Service, and Islamic trade finance products in the Middle East
  • Best Trade Finance Bank for Products in Bahrain
  • Best Trade Finance Bank for Products, Technology and Client Service in Qatar

Disclaimer:

This document has been prepared by Mashreq Bank PSC (“Mashreq”) solely for informational purposes. The views, statements, and data presented herein do not represent a public offer or invitation to subscribe to, purchase, or sell any financial instruments or securities. Furthermore, this document should not be construed as investment advice or a recommendation regarding any financial product. It is not intended for distribution in any jurisdiction where such dissemination would violate applicable laws or regulations.

The content in this communication is intended to provide general insights into Mashreq’s operations, performance, and strategic direction. While care has been taken in preparing the material, it may include data derived from third-party sources, which have not been independently validated. No warranty or representation is made as to the accuracy or completeness of the information, and it should not be relied upon as the sole basis for making investment decisions. Readers are encouraged to seek their own independent financial, legal, or tax advice tailored to their specific circumstances.

This document may contain projections or forward-looking statements reflecting current views of Mashreq’s management concerning future events, financial conditions, or performance. These statements are inherently subject to known and unknown risks and uncertainties, including economic developments, interest rate movements, regulatory shifts, geopolitical events, and other factors beyond the Bank’s control.

Consequently, actual results may differ significantly from those anticipated. Mashreq does not undertake any obligation to update or revise forward-looking statements to reflect future events or changes in expectations, except as required by applicable laws.

Mashreq Bank PSC
P.O. Box 1250, Dubai, United Arab Emirates