Mashreq has begun 2025 with a strong set of financial results, reporting a net profit before tax of Dh2.1 billion, or Dh1.8 billion after tax, for the first quarter. The bank's return on equity stood at an impressive 21%, driven by double-digit loan growth, a solid capital base, and a strategic focus on cost management, all achieved despite a more moderate interest rate environment.
Operating income increased to Dh3.1 billion, buoyed by strong client margins and a 16% year-on-year increase in non-interest income, demonstrating Mashreq’s success in diversifying its revenue streams beyond traditional interest-based income. The bank’s net interest margin held steady at 3.3%, even after a 100-basis point reduction in benchmark rates.
Strong Loan and Deposit Growth
Mashreq’s loan book grew by 14% year-on-year, while customer deposits rose by 10%, with low-cost current and savings accounts (CASA) accounting for 65% of the deposit base. The bank’s operating profit stood at Dh2.2 billion, and its cost-to-income ratio remained among the lowest in the industry at 29%.
Improved Asset Quality
The bank's asset quality remained a positive aspect, with the non-performing loans (NPL) ratio improving to 1.3%, supported by a coverage ratio of 204%. Provisioning remained low at Dh101 million, thanks to prudent credit risk management and a high-quality lending portfolio.
Mashreq's total assets grew by 9% to reach Dh273 billion, reflecting continued client activity and strategic expansion. The bank’s capital adequacy remained strong at 18.5%, well above regulatory requirements, while its liquidity coverage ratio stood at a healthy 126%.
Digital and Regional Focus Drives Growth
Group CEO Ahmed Abdelaal attributed the bank's strong performance to its ongoing focus on digital transformation and regional expansion. "We entered 2025 with strong momentum, delivering over Dh3 billion of operating income and 14% loan growth in the first quarter," he said. "These results reflect our diversified business model and disciplined execution, even in a more measured rate environment."
During the quarter, Mashreq launched its operations in Oman, piloted digital retail banking in Pakistan, and advanced initiatives aimed at supporting small and medium-sized enterprises (SMEs). The bank’s NEO digital banking platform continues to expand internationally, and Mashreq became the first bank in the region to receive external assurance for its full ESG data set.
Strategic Priorities for the Future
Abdelaal further emphasized Mashreq's commitment to scaling its Banking-as-a-Service model, embedding finance, and accelerating AI-driven solutions to deliver seamless, hyper-personalized experiences for clients. As the bank builds on its regional leadership, Mashreq is positioning itself to support the broader economic transformation of the UAE and GCC with an innovation-driven strategy.
