Mashreq has reported another year of outstanding performance in 2025, marked by record loan and deposit growth, strong international expansion and continued progress in its strategy to become a globally connected, digitally advanced bank serving major trade and investment corridors. Operating income reached AED 12.6 billion, while net profit before tax stood at AED 8.3 billion, reflecting resilient performance despite softer rate conditions and a higher tax environment. Total assets increased 25 percent to AED 335 billion.
Customer loans rose 32 percent year on year, customer deposits grew 27 percent, and Mashreq maintained a healthy 3.1 percent net interest margin supported by a CASA ratio of 62 percent. Return on equity remained strong at 20 percent, with return on assets at 2.3 percent. The Bank also sustained industry-leading credit quality with an NPL ratio of 1.0 percent and a coverage ratio of 263 percent.
The year also marked a strategic milestone as Mashreq was designated a Domestic Systemically Important Bank (D-SIB) by the Central Bank of the UAE, underscoring its scale, relevance and systemic importance.
Strong operating income and diversified performance
Operating income reached AED 12.6 billion, up 3 percent year on year on an adjusted basis excluding the prior-year IDFAA divestment gain. Growth was supported by higher origination volumes, increased cross-border flows and stronger income contribution across customer franchises.
Non-interest income rose 16 percent year on year (excluding one-offs), driven by 53 percent growth in investment income and 30 percent growth in other income as transaction activity intensified. Cross-sell ratio reached 35 percent, reflecting deeper client engagement and multi-product adoption.
Disciplined cost management and technology investment
Operating expenses increased 5 percent year on year, reflecting targeted investment in digital platforms, AI-led capabilities and international expansion, while maintaining disciplined cost control. The Bank delivered a 31 percent cost-to-income ratio, among the strongest in the industry, underscoring the scalability of its digital-first model.
Significant investments in 2025 focused on AI deployment across onboarding, lending, credit decisioning and transaction processing, enhancing straight-through processing and operational resilience.
Robust profitability despite higher taxation
Mashreq generated AED 8.3 billion in net profit before tax and AED 7.0 billion after tax, reflecting strong earnings momentum despite the introduction of international tax frameworks such as the UAE Domestic Minimum Top-Up Tax and Pillar Two rules. The effective tax rate rose to 15.63 percent, but profitability and returns remained resilient.
Impairment allowances remained low at AED 444 million, equivalent to a cost of credit of 27 basis points, supported by strong underwriting standards and favorable macroeconomic conditions.
Record balance-sheet growth and strong liquidity
Total assets increased to AED 335 billion, underpinned by 30 percent growth in lending across customers and banks and 39 percent growth in the investment portfolio. Wholesale banking grew 30 percent, while retail banking grew 13 percent. Customer deposits reached AED 205 billion, with a 62 percent CASA mix providing a stable funding base.
Liquidity coverage ratio stood at 158 percent, and the liquid assets ratio reached 28 percent, both comfortably above regulatory thresholds. The Bank enhanced its funding profile through a USD 2 billion syndicated loan and a debut USD 500 million Sukuk, both oversubscribed and demonstrating strong market confidence.
Capital strength and industry-leading asset quality
Mashreq maintained strong capital metrics, including:
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14.5 percent Capital Adequacy Ratio
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12.3 percent CET1 ratio
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13.4 percent Tier 1 ratio
The Bank sustained the lowest NPL ratio in the industry at 1.0 percent, supported by disciplined credit selection and strong portfolio performance despite rapid loan growth.
Strategic outlook and 2026 priorities
2025 marked a defining stage in Mashreq’s evolution as a digitally advanced, globally connected financial institution. Looking ahead to 2026, the Bank plans to accelerate innovation-led growth through advanced digital platforms, AI, data-driven decisioning and enhanced cross-border connectivity.
Mashreq will continue expanding along key UAE- and GCC-linked global corridors, reinforcing its role in enabling trade flows, capital mobility and institutional client activity. With strong capitalisation, healthy efficiency metrics and a diversified income base, the Bank remains well positioned for sustained long-term growth.
H.E. Abdul Aziz Al Ghurair, Chairman, Mashreq
“As we reflect on 2025, Mashreq’s progress is defined by resilience, disciplined growth, and a clear commitment to our purpose as a trusted enabler of financial advancement across borders. In a year that tested global markets and accelerated the shift toward a digital-first economy, Mashreq delivered a strong performance, achieving a net profit before tax of AED 8.3 billion.
This outcome reflects the strength of our strategy, the trust of our clients, and the enduring relevance of our role in the UAE’s evolving financial landscape. Being recognised as a Domestic Systemically Important Bank by the Central Bank of the UAE is not only an honor but also a responsibility, one that underscores our position as a foundational pillar in the country’s continued rise as a regional and global financial hub.
Looking ahead, we remain focused on advancing innovation, expanding our international reach, and embedding sustainability into our long-term agenda. With a strong foundation and a forward-looking vision, Mashreq will continue to empower clients, communities, and economies through inclusive, human-centric and technology-enabled banking.”
Ahmed Abdelaal, Group Chief Executive Officer, Mashreq
“2025 marked another pivotal year in Mashreq’s journey as a digitally advanced, globally connected bank serving clients across some of the world’s most dynamic trade and investment corridors. In a year of continued transformation and growth, we delivered operating income of AED 12.6 billion, expanded our total assets by 25% to AED 335 billion, and achieved a return on equity of 20%, all while maintaining a cost-to-income ratio of 31%, among the best in the industry.
This performance reflects our ability to scale strategically, remain agile in a changing economic environment, and deliver value through a diversified business model. Our expansion across strategic markets such as Türkiye, India, Egypt, and the US, the launch of our fully digital bank in Pakistan, and the continued development of Mashreq NEO platforms have enabled us to serve clients across retail, SME, and institutional segments with speed, intelligence and consistency.
As the only US dollar clearing bank based in the region, we have strengthened our role as a critical hub for cross-border trade, capital markets, and settlement infrastructure. Our wholesale banking and capital markets franchises continued to grow, and we were proud to support regional clients in accessing global investors and liquidity through innovative financing solutions.
Digital transformation remains central to our operating model. In 2025, we accelerated the deployment of AI tools across lending, onboarding, credit decisioning, and fraud prevention. Our in-house digital studios played a vital role in building scalable platforms and journeys that deliver real-time experiences while ensuring operational resilience and regulatory compliance.
We also deepened our focus on sustainability. By year-end, we facilitated significant volumes of sustainable finance, expanded our range of green retail offerings, and advanced our environmental commitments through high-efficiency operations and certified buildings across key markets.
Above all, it is our people who drive this transformation. We continued to invest in leadership development, inclusion, and nationalization, while supporting flexible work models and continuous learning through platforms such as WERise and WELearn. Across the organisation, our colleagues have shown exceptional commitment to our shared purpose.
Looking to the future, we will continue to deliver responsible growth, deepen our international footprint, and lead with technology and purpose. Our ambition remains to shape the future of banking by empowering clients, communities, and our people to thrive in an increasingly connected world. With resilience and purpose, we are well-positioned to navigate the opportunities and complexities of the year ahead.”
