Mashreq posts Dh2.1b Q1 profit as digital, regional growth drive momentum

Dubai: Mashreq has kicked off 2025 with a strong set of first-quarter results, reporting a net profit before tax of Dh2.1 billion (Dh1.8 billion after tax). The bank’s return on equity stood at an impressive 21%, driven by double-digit loan growth, a robust capital base, and disciplined cost control, all delivered despite a more moderate interest rate environment.

Operating income rose to Dh3.1 billion, underpinned by healthy client margins and a 16% year-on-year rise in non-interest income—showing clear progress in the bank’s strategy to diversify revenue away from traditional interest-based streams. Mashreq’s net interest margin held strong at 3.3%, even after a 100-basis point cut in benchmark rates.

Loans and advances increased 14% year-on-year, while customer deposits grew by 10%, with low-cost current and savings accounts (CASA) accounting for 65% of the deposit base. Operating profit came in at Dh2.2 billion, while the bank’s cost-to-income ratio remained among the lowest in the industry at 29%.

Asset quality remained a bright spot. The non-performing loans (NPL) ratio improved to 1.3%, with a coverage ratio of 204%. Provisioning stayed low at Dh101 million, thanks to prudent credit risk management and a high-quality lending book.

Mashreq's total assets grew 9% to Dh273 billion, reflecting sustained client activity and strategic expansion. Capital adequacy remained strong at 18.5%, well above regulatory requirements, while the bank maintained a liquidity coverage ratio of 126%.

Group CEO Ahmed Abdelaal attributed the strong results to Mashreq’s continued digital and regional focus. “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.”

The bank advanced several strategic priorities during the quarter, including the launch of Mashreq Oman, a pilot of digital retail banking in Pakistan, and new initiatives for SMEs. Its NEO digital banking platform continues to expand internationally, and the bank became the first in the region to receive external assurance for its full ESG data set.

“We remain focused on scaling our Banking-as-a-Service model, deepening embedded finance, and accelerating AI-driven solutions to deliver seamless, hyper-personalized experiences,” Abdelaal added.

As Mashreq builds on its regional leadership, the bank is positioning itself to support the UAE and GCC’s broader economic transformation with a future-ready, innovation-led strategy.