Dubai, UAE: Mashreq, one of the leading financial institutions in the MENA region, has delivered exceptional results for the full year 2025, marked by transformational international expansion, record loan and deposit growth, and a strategic repositioning as the connector bank for emerging trade corridors spanning Asia, the Middle East, Europe and North America.
Operating income reached AED 12.6 billion, while net profit before tax totaled AED 8.3 billion, reflecting resilient performance and disciplined execution in a softer rate and higher-tax environment. Performance in 2025 was driven by strong balance-sheet expansion, with customer loans growing 32% year-on-year, customer deposits increasing 27%, and total assets rising 25% to AED 335 billion,
as Mashreq scaled its digital-first operating model and captured increased trade and capital flows across key global corridors. Mashreq maintained strong efficiency, with a cost-to-income ratio of 31%, supported by a structurally strong funding profile underpinned by a CASA ratio of 62%. Asset quality remained industry-leading, with a non-performing loan ratio of 1.0% and a coverage ratio of 263%, underpinned by strong portfolio performance and sustained credit discipline across geographies.
The year also marked a milestone in Mashreq’s institutional standing, with its designation as a Domestic Systemically Important Bank (D-SIB) by the Central Bank of the UAE, reflecting the Bank’s scale, systemic relevance and robust risk governance as it continues to expand its global footprint.
Key Highlights:
- Revenues and Income Generation Strong operating income reflecting the scalability of Mashreq’s diversified, globally connected franchise, underpinned by strong balance-sheet growth and expanding trade and transaction flows.
- Operating income reached AED 12.6 billion in 2025, up 3% year-on-year on an adjusted basis excluding the one-off gain resulting from the IDFAA partial divestment in 2024, supported by higher origination volumes and stronger income contribution across Mashreq’s franchises.
- Net interest margin (NIM) remained resilient at 3.1% for the full year, despite cumulative policy rate cuts of 175 basis points since H2 2024, supported by disciplined repricing and a stable low-cost funding base, with Current Account Savings Account (CASA) at 62%.
- Non-interest income increased 16% year-on-year (excluding one off gain from partial divestment of IDFAA), driven by a 53% increase in investment income and a 30% increase in other income (excluding one-offs), reflecting higher transaction intensity and reinforcing the shift toward a more balanced and fee-accretive earnings mix.
- Cross-sell ratio rose to 35%, up approximately 400 basis points year-on-year (excluding one-offs), demonstrating a step-up in multi-product adoption across core client relationships and reinforcing the durability and diversification of the income mix.
- Expenses and Efficiency Mashreq delivered a strong and resilient efficiency outcome in 2025, maintaining a healthy cost profile while executing international expansion and accelerating investment in digital and AI capabilities.
- Operating expenses increased by 5% year-on-year, reflecting targeted investments in digital platforms, AI capabilities and international build-out, while maintaining disciplined cost management amid materially higher business volumes.
- Cost-to-income ratio stood at 31%, remaining healthy and competitive in a year marked by elevated investment activity and geographic expansion, underscoring the scalability of Mashreq’s operating model.
- Significant investment during the year focused on AI deployment, digital onboarding, credit decisioning and transaction processing capabilities, enhancing straight-through processing, reducing manual intervention and strengthening operational resilience across retail, SME and wholesale businesses.
- Earnings and Profitability Strong profitability and superior returns delivered in a year marked by record balance-sheet growth, disciplined execution and a structurally higher tax environment.
- Net profit before tax reached AED 8.3 billion in 2025, with net profit after tax of AED 7.0 billion, reflecting the Bank’s ability to translate scale, diversification and operating discipline into strong earnings despite the introduction of corporate income taxation.
- Return on equity remained strong at 20%, with return on assets at 2.3%, underscoring Mashreq’s ability to generate high-quality returns through disciplined capital deployment, stable margins and a diversified income base.
- Impairment charges remained low at AED 444 million, equivalent to a cost of credit of 27 basis points, demonstrating strong portfolio performance and credit discipline across geographies despite rapid loan growth.
- Tax expense increased to AED 1.3 billion in 2025 from AED 869 million in 2024, with the effective tax rate rising to 15.63% from 8.79%, primarily reflecting the introduction of the UAE Domestic Minimum Top-Up Tax (DMTT) and the application of Pillar Two rules; notwithstanding this structural step-up, profitability and returns remained firmly strong.
- Asset Quality and Risk Management Industry-leading asset quality sustained through a year of exceptional balance-sheet expansion, underpinned by strong portfolio performance and disciplined credit execution across geographies.
- Mashreq delivered the lowest non-performing loan ratio in the sector at 1.0% as at 31 December 2025, improving from 1.4% a year earlier, despite 32% year-on-year growth in customer loans.
- Coverage ratio strengthened to a robust 263%, providing a substantial buffer against potential downside risk and reinforcing balance-sheet resilience as activity levels and transaction volumes expanded.
- Strong asset quality outcomes were supported by disciplined credit selection, portfolio steering and sustained credit discipline across geographies, enabling Mashreq to scale lending activity while preserving best-in-class credit metrics.
- Balance Sheet Strength Balance-sheet momentum accelerated in 2025, driven by strong client demand, disciplined balance-sheet deployment and continued expansion across Mashreq’s core franchises
- Total assets increased 25% year-on-year to AED 335 billion as at 31 December 2025, reflecting broad-based balance-sheet growth across the UAE franchise and selective expansion aligned with client activity.
- Total lending across customers and banks grew 30% year-on-year to AED 230 billion, supported by strong origination across wholesale, retail and financial institution portfolios and higher transaction and financing volumes.
- Customer deposits rose 27% year-on-year to AED 205 billion, underpinned by continued growth in granular retail and corporate balances, with a CASA ratio of 62% providing a stable, low-cost funding base.
- Capital and Liquidity Position Strategic capital and liquidity management in 2025 reinforced Mashreq’s ability to fund growth, absorb volatility and support expanding client activity across markets.
- Liquidity metrics remained comfortably above regulatory requirements, with a liquid assets ratio of 28%, loan-to-deposit ratio of 80% and liquidity coverage ratio of 158%, supporting elevated lending and transaction activity.
- Funding resilience was further strengthened through two highly successful and oversubscribed transactions in 2025: a USD 2 billion syndicated loan facility and a debut USD 500 million Sukuk issuance, underscoring strong investor demand and confidence in Mashreq’s credit profile.
- Capitalisation remained among the strongest in the sector, with a capital adequacy ratio of 14.5%, Tier 1 ratio of 13.4% and CET1 ratio of 12.3%, supported by solid internal capital generation and best-in-class asset quality.
| AED 8.3 billion Net Profit Before Tax | AED 12.6 billion Revenue | AED 8.7 billion Operating Profit | |||
| 32% YoY Loans & Advances Growth | 27% YoY Customer Deposits Growth (CASA 66%) | 31% Cost to Income Ratio | |||
| 20% Return on Equity | 2.3% Return on Assets | 3.1% Net Interest Margin | |||
| 14.5% Capital Adequacy Ratio | 1.0% NPL to Gross Loans Ratio | 263% NPL Coverage Ratio | |||
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