H.E. Abdul Aziz Al Ghurair
Chairman, Mashreq
The first half of 2025 marked another period of exceptional performance and strategic momentum for Mashreq. Our results are a reflection of the trust our clients place in us, the strength and clarity of our long-term strategy, and our unwavering commitment to driving sustainable economic transformation across the UAE and the broader region.
While global macroeconomic uncertainty continues to pose challenges, the GCC stands out as a beacon of resilience, supported by strong policy frameworks, fiscal prudence, and a rapidly diversifying non-oil economy. This strength is clearly mirrored in the performance of the UAE banking sector, which saw total investments exceed AED 760 billion by March of this year.
Mashreq’s trajectory is firmly aligned with this regional momentum. Our continued ability to deliver double-digit growth, expand internationally, and lead with innovation underscores our differentiated value proposition and our disciplined execution across cycles. We remain resolute in our ambition to create enduring value by empowering clients, championing responsible finance, and building a digitally advanced, globally connected financial institution.
As the UAE economy maintains its upward trajectory, Mashreq will continue to be a key enabler—supporting inclusive growth, advancing national priorities, and reinforcing the country’s position as a global financial hub.
Ahmed Abdelaal
Group Chief Executive Officer, Mashreq
Mashreq’s performance in the first half of 2025 reinforces the strength of our business model and our disciplined approach to sustainable, high-quality growth. Despite a more moderated rate environment and evolving global dynamics, we continued to deliver robust results—underpinned by strong client activity, a diversified earnings profile, and our unwavering commitment to innovation, efficiency, and value creation.
Our investment strategy remains sharply focused on future-proofing the organization. We are making measured yet impactful investments in upgrading our technology infrastructure, expanding our digital and international presence, and forming strategic partnerships that allow us to deliver best-in-class client experiences across all segments. These efforts are designed not just to enhance competitiveness but to embed long-term resilience and scalability into our operations.
At the same time, we have maintained strict cost discipline. Our ability to absorb continued investment—without compromising our industry-leading cost-to-income ratio of 30%—speaks to the strength of our operational model and our relentless focus on efficiency.
Our strategic expansion into high-growth markets such as Pakistan, Türkiye and Oman, along with our entry into GIFT City in India, marks a pivotal step in building Mashreq’s global relevance and connectivity. These initiatives are aligned with our ambition to support cross-border capital flows and to serve our clients across key economic corridors with tailored, high-impact financial solutions.
As we look ahead, our priorities remain clear: to scale responsibly, partner strategically, and invest intelligently—delivering long-term value to our shareholders while continuing to lead with innovation, discipline, and purpose.
Looking Ahead
Mashreq’s first-half performance in 2025 reaffirmed the strength of its diversified business model, the trust it commands across domestic and international markets, and its disciplined approach to strategic execution.
Looking ahead to the remainder of the year, the Bank will remain focused on driving innovation-led growth, enhancing customer experience across all segments, and expanding its presence in priority markets. Recent entries into Turkey and Oman mark the beginning of a broader regional expansion strategy, with Mashreq aiming to deepen its international footprint through a targeted, client-centric approach.
Supported by a strong capital and liquidity base, Mashreq is well-positioned to deliver sustainable and balanced growth, while preserving its leading asset quality and continuing to generate superior returns for shareholders.
Financial Review:
Note: Figures may not add up due to rounding differences
- Net Interest Income rose 1% quarter-on-quarter but declined 6% year-on-year due to a 61bps contraction in NIM to 3.2%, which was driven by a 100bps rate cut by UAE Central Bank.
- Non-Interest Income representing 36% of Total Operating Income witnessed a 17% year-on-year growth in H1 2025 to AED 2.2 billion supported by strong growth in investment (+55% year-on-year) and other income (+56% year-on-year).
- Total Operating Income increased by 1% to AED 6.2 billion in H1 2025 supported by non-interest income and double-digit growth in the loan and advances.
- Operating expenses grew by 11.5%, reflecting continued investment in digital innovation and strategic business expansion.
- Impairment allowances remained low at AED 245 million in H1 2025 (cost of credit of 36bps), reflecting the strong quality of the loan book and underwriting standards.
- Income tax expense of AED 604 million in H1 2025 up by 35% year-on-year impacted the net profit after tax, which saw a decline of 14% to reach AED 3.5 billion in H1 2025, with a strong ROE of 20%.
Note: Figures may not add up due to rounding differences
- Total Assets grew to AED 294 billion in H1 2025, marking a 16% year-on-year and 10% year-to-date increase, due to continued credit growth and liquidity optimization
- The growth in the balance sheet is supported by year-on-year growth in total assets of wholesale banking segment by 23% to AED 161 billion and retail banking segment by 12% to AED 35 billion
- Customer Deposits increased 15% year-on-year to AED 177 billion with CASA accounting for 69% of total deposits
- NPL Ratio stood at 1.2% and remained the lowest in the industry
- Strong capitalization in H1 2025 with Capital Adequacy Ratio of 17.5%, CET1 ratio of 14.8% and Tier 1 ratio of 16.2%, however slightly impacted by strong credit growth resulting in increased Risk Weighted Assets
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