04/11/2025 02:53 AST
Mashreq delivered a net profit before tax of AED6.1 billion ($1.66 billion) and net profit after tax of AED5.2 billion ($1.42 billion) for the first nine months of 2025, marking another strong earnings performance driven by diversified income growth, disciplined balance-sheet management, and consistent operational excellence across the franchise.
Return on equity stood at 20% and return on assets at 2.3%, reflecting Mashreq's consistent ability to generate solid returns through disciplined execution, efficient capital deployment, and an enhanced operating model.
Tax expense rose 49% year-on-year to AED961 million following the UAE's adoption of the corporate income tax regime and the introduction of Global Minimal Tax in most countries Mashreq operates in; nevertheless, profitability remained firm, supported by strong underlying income and sustained cost efficiency.
Impairment charges were contained at AED366 million (cost of credit 34 bps), underscoring Mashreq's high asset quality, conservative provisioning, and prudent risk management practices that continue to safeguard earning stability.
Total assets surpassed AED300 billion for the first time, with continued double-digit balance-sheet expansion and the depth of Mashreq's franchise. Customer loans & advances increased by 21% year-on-year and customer deposits by 20% year-on-year.
Mashreq continues to advance its strategy by combining balanced growth with efficiency, accelerating investment in digital platforms and data intelligence, and expanding its global presence to create enduring value for clients and shareholders.
Revenues and Income Generation
Operating income growth led by expanding lending activity, deeper client engagement, and stronger non-interest income across Mashreq's global businesses.
Operating income increased to AED 9.4 billion in 9M 2025, a result of broad-based commercial strength across corporate and retail, as well as the various international segments. Growth in loans and advances and customers deposits remain key drivers, complemented by rising client activity and a strong contribution from non-interest income, demonstrating Mashreq's ability to convert business momentum into strong topline growth and diversified earnings amid an easing rate environment.
Net interest income rose 6% quarter-on-quarter to AED2.1 billion in Q3 2025, with a stable net interest margin of 3.2% for 9M 2025. Loan growth, disciplined asset repricing, and a strong funding base, with current account savings account (CASA) at 66% of deposits, continued to offset rate-driven margin pressure and preserve spread stability.
Non-interest income increased 20% year-on-year, driven by a 50% rise in investment income and a 41% increase in other income, reflecting stronger client activity, market opportunities captured across investment and trading portfolios, and ongoing diversification of Mashreq's revenue base.
Growth in non-interest income led to a near 5% year-on-year improvement in the cross-sell ratio to 35%, highlighting deepening client relationships and more balanced earnings mix across businesses.
Expenses and Efficiency
Strategic investments in digital platforms, AI capabilities, and international expansion managed through disciplined cost control to maintain Mashreq's industry-leading efficiency and operational scalability.
Mashreq continued to drive investments toward digital transformation, AI-led innovation, and international expansion, reinforcing the Bank's long-term competitiveness and scalability while maintaining one of the most efficient cost structures.
Cost-to-income ratio remained industry-leading at 31%, underscoring Mashreq's ability to pursue growth and modernisation while preserving strict cost discipline through automation, process streamlining, and technology-led operating leverage.
Spending remained tightly focused on high-impact initiatives including next-generation digital ecosystems, AI-driven operational platforms, and expansion across Türkiye, Oman, Pakistan and India's GIFT City.
Mashreq's operating model continues to drive scale and efficiency, enabling the Bank to invest confidently in transformation and international growth while sustaining benchmark levels of productivity and cost efficiency.
Abdul Aziz Al Ghurair - Chairman, Mashreq, said: "Mashreq's performance stands as a testament to the strength of our strategic vision and the trust we continue to earn from clients, shareholders, and partners. Surpassing AED300 billion in total assets is a clear reflection of our disciplined growth strategy and our deep alignment with the evolving economic priorities of the markets in which we operate. This achievement comes at a time when the UAE's banking sector is demonstrating exceptional resilience and dynamism. Backed by strong capital and liquidity positions, improved asset quality, and steady growth across key indicators, the financial system remains well-positioned to support economic expansion.
"Looking ahead, we expect the banking sector's outlook to remain positive, supported by sound fiscal governance, robust fundamentals, and the continued advancement of a transparent and innovation-led financial ecosystem. As we continue building on this momentum, Mashreq remains firmly committed to enabling sustainable, inclusive growth, both in our home market and across the international communities we serve."
Ahmed Abdelaal - Group Chief Executive Officer, Mashreq, said: "Mashreq continues to deliver strong and sustainable performance underpinned by a clear strategic vision and a disciplined operating model. Our net profit reached AED6.1 billion, supported by a 20% year-on-year increase in non-interest income and AED9.4 billion in operating income, reflecting broad based growth across corporate, retail, and international segments.
"One of the most significant developments this year has been our commercial launch in Pakistan, a milestone that reinforces our international strategy. We have received strong support from government, regulators and stakeholders, and the market's positive reception has validated our digital first approach to serving both individuals and businesses in one of the most promising economies in the region."
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