Mashreq has reported a strong financial performance for the first nine months of 2025, with operating income rising to Dh9.4 billion, driven by expanding client activity across corporate, retail and international segments.
The bank’s third-quarter operating income reached Dh3.2 billion, up 4 per cent quarter-on-quarter and 8 per cent year-on-year, underpinned by resilient net interest income and a strong rise in non-interest income. Net profit before tax stood at Dh6.1 billion for the nine-month period, reflecting the bank’s ability to sustain earnings momentum in a moderating interest rate environment.
Mashreq reported a net interest margin of 3.2 per cent and maintained a sector-leading cost-to-income ratio of 31 per cent, supporting a return on equity of 20 per cent. Net profit after tax came in at Dh5.2 billion, even after accounting for a 49 per cent year-on-year rise in tax expense following the UAE’s adoption of corporate tax and the global minimum tax framework in some international markets where the bank operates.
Total assets surpassed Dh300 billion for the first time, underscoring the scale and depth of Mashreq’s franchise. As of September 30, total assets stood at Dh305 billion, rising 20 per cent year-on-year and 14 per cent since the start of the year.
Customer loans and advances increased 21 per cent year-on-year, while customer deposits grew 20 per cent, reflecting strong balance-sheet expansion and client confidence.
Abdul Aziz Al Ghurair, chairman of Mashreq, said the bank’s growth reflects its alignment with the UAE’s expanding and innovation-driven economic landscape. “Surpassing Dh300 billion in total assets is a clear reflection of our disciplined strategy. The UAE’s financial sector continues to demonstrate resilience and dynamism, and Mashreq is committed to enabling inclusive and sustainable growth,” he said.
A key driver of profitability was loan growth alongside strong funding dynamics. Net interest income rose 6 per cent quarter-on-quarter to Dh2.1 billion in the third quarter, supported by disciplined asset repricing and a healthy funding mix. Current and savings accounts accounted for 66 per cent of deposits, providing a stable and low-cost funding base that helped offset pressure on margins from easing rates.
Non-interest income grew 20 per cent year-on-year, driven by a 50 per cent increase in investment income and a 41 per cent rise in other income. Higher client trading activity, successful market positioning across investment portfolios and expanding fee-based businesses contributed to the rise. The growth also helped improve the bank’s cross-sell ratio to 35 per cent.
Mashreq Group CEO Ahmed Abdelaal highlighted the bank’s strategic international momentum, including its commercial launch in Pakistan and expansion into GIFT City in India. “Our growing presence across key markets positions Mashreq to support capital and trade flows across Asia, the Middle East, Europe and the United States. We are embedding advanced digital and AI technologies to deliver more intuitive financial experiences and scale efficiently across every business line.”
Mashreq’s disciplined cost strategy enabled continued investment in strategic priorities, including digital transformation, artificial intelligence-led platforms and regional expansion. Despite ongoing investment in technology infrastructure and new-market entry, the bank sustained one of the strongest efficiency ratios in the industry.
Spending remained focused on high-impact transformation initiatives and expansion in Türkiye, Oman, Pakistan and India’s GIFT City, supporting the bank’s long-term scale strategy.
Asset quality remained robust, with the non-performing loan ratio improving to 1.1 per cent as of September 30, down from 1.5 per cent a year earlier. Impairment charges were contained at Dh366 million, with a cost of risk of 34 basis points.
The coverage ratio remained strong at 235 per cent, signalling prudent provisioning and a conservative approach to credit risk.Total lending across customers and banks grew 24 per cent year-on-year to Dh208 billion, with growth concentrated in strategic sectors including trade, manufacturing and infrastructure—areas aligned with national development priorities and regional trade flows. Customer deposits reached Dh187 billion, reflecting Mashreq’s ability to attract stable deposits amid growing transaction banking volumes and digital payment flows.Mashreq’s liquidity and capital position remained strong.
The bank reported a Liquid Assets Ratio of 27 per cent, a Loan-to-Deposit Ratio of 76 per cent and a Liquidity Coverage Ratio of 123 per cent, all comfortably above regulatory thresholds. The Capital Adequacy Ratio stood at 16.8 per cent, Tier 1 at 15.5 per cent and Common Equity Tier 1 at 14.2 per cent, supported by strong internal capital generation and stable asset quality.
