Dubai-based Mashreq has reported a record net profit before tax of AED 9.9 billion, a 12% year-on-year increase, reflecting both operational efficiency and revenue growth.
The bank’s net profit after AED 869 million tax stood at AED 9 billion, marking a 4% rise from the previous year.
Mashreq’s total revenue surged by 24% to AED 13.4 billion, maintaining an impressive three-year compound annual growth rate (CAGR) of 32%. Net interest income rose 9% despite interest rate cuts, while non-interest income soared 63% to AED 5 billion, driven by robust fee-based services and strong client engagement in foreign exchange, derivatives, and commodities trading.
The Dubai-listed bank reported a one-off net gain of AED 1.2 billion from the partial sale of a subsidiary.
Mashreq improved its cost-to-income ratio by 339 basis points, bringing it down to 28%. Despite an 11% rise in operating expenses, the bank achieved a 30% increase in operating profit, which reached AED 9.7 billion.
Total assets grew by 11% to AED 267 billion, fuelled by an 18% growth in loans and advances. Customer deposits increased by 10% to AED 161 billion, with current and savings account (CASA) deposits comprising 66% of the total. Retail banking assets grew 9% to AED 31 billion, while wholesale banking assets increased 15% to AED 145 billion.
The bank’s liquidity coverage ratio stood at 150%, while its capital adequacy ratio improved to 17.5%. Tier 1 capital ratio rose to 16%, and common equity tier 1 (CET1) ratio reached 14.5%, highlighting Mashreq’s strong financial position and ability to support future growth.
Mashreq maintained one of the lowest non-performing loans (NPL) ratios in the industry at 1.35%, with a coverage ratio of 209%. The bank achieved a net release of AED 166 million in allowances for impairments, reflecting disciplined risk management and strong recoveries.
The banking group expanded its footprint in key markets, including India, Hong Kong, and the GCC. It became the first bank to secure a restricted pilot license for digital retail banking in Pakistan. Mashreq also launched Mashreq NEO in Egypt and enhanced its NEO CORP platform across the GCC, solidifying its position as a leader in digital banking.
Mashreq intensified its focus on ESG initiatives, with its award-winning Climb2Change program and sustainability-linked loan deals. The bank received multiple accolades, including recognition as the Most Innovative Financial Institution in the Middle East by Global Finance and the Fastest-Growing Middle East Banking Brand by Brand Finance.
