Mashreq posts Dh6.2b in H1 income as lending, digital gains rise

30/07/2025 03:20 AST

Mashreq Bank reported a strong performance for the first half of 2025, with operating income reaching Dh6.2 billion, backed by a 21% increase in loans and solid non-interest income growth.

Despite a softer interest rate environment, the bank maintained a 20% return on equity (ROE) and an industry-leading 30% cost-to-income ratio.

Net profit after tax stood at Dh3.5 billion, even as the bank absorbed the impact of the UAE's new 15% global minimum tax. "Our ability to deliver consistent, double-digit growth across cycles speaks to our long-term strategy and client trust," said Mashreq Chairman Abdul Aziz Al Ghurair.

Net interest income rose to Dh2 billion in Q2 2025, with Net Interest Margin (NIM) steady at 3.2%. Non-interest income grew 17%, driven by a 55% surge in investment income and a 56% increase in other income streams.

Operating expenses rose 11.5% year-on-year as the bank expanded into Türkiye, Oman, Pakistan, and India's GIFT City. Even so, Mashreq maintained tight cost controls through automation, AI-led upgrades, and process digitisation.

Asset quality remained high, with the non-performing loan (NPL) ratio improving to 1.2% and a coverage ratio of 210%. Customer deposits grew to Dh178 billion, and the CASA ratio improved to 69%, reinforcing a stable, low-cost funding base.

The Central Bank of the UAE also designated Mashreq as a Domestic Systemically Important Bank (D-SIB) in H1, reflecting its growing role in the national financial system.

"Our performance reflects a disciplined focus on innovation, client value, and sustainable growth," said Group CEO Ahmed Abdelaal.

Gulfnews