Mashreq’s operating income reached AED6.2 billion ($1.69 billion) in H1 2025, reaffirming the bank’s position as one of the region’s most resilient and forward-looking financial institutions. Mashreq continued to generate strong, broad-based growth despite a softening interest rate environment, supported by double-digit increases in both lending and non-interest income.
“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,” said Abdul Aziz Al Ghurair, Chairman of Mashreq.
Net interest income hits AED2 billion
The bank’s net interest income increased 1 percent quarter-on-quarter to AED2 billion in Q2 2025, as sustained volume growth and disciplined asset repricing offset the cumulative 100bps rate cut implemented since 2024. Meanwhile, non-interest income expanded 17 percent year-on-year, propelled by a 55 percent surge in investment income and a 56 percent increase in other income streams.
On the other hand, operating expenses increased by 11.5 percent year-on-year, reflecting focused investments to support Mashreq’s international expansion, upgrade digital infrastructure and enhance client interface channels across all key markets.
Despite elevated investment activity, the cost-to-income ratio remained best-in-class at 30 percent, underscoring Mashreq’s operational discipline, scalable technology backbone, and sustained ability to drive efficiency while executing its strategic growth roadmap.
Loans and advances grow 21 percent
In its latest financial results, Mashreq also revealed that it achieved a profit before tax of AED4.1 billion and a net profit after tax of AED3.5 billion. Mashreq also revealed that its balance sheet expanded by 16 percent year-on-year in H1 2025, reflecting healthy underlying demand across priority markets and continued momentum in both wholesale and retail banking segments.
“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 AED760 billion by March of this year,” added Al Ghurair.
Loans and advances grew by a solid 21 percent year-on-year, with growth concentrated in strategically important sectors such as residential mortgages, manufacturing, construction and financial institutions, reinforcing the bank’s role in supporting real economy sectors.
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Deposits reach AED178 billion
In addition, customer deposits reached AED178 billion, up 15 percent year-on-year, driven by deepening client relationships and continued franchise strength.
“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,” said Ahmed Abdelaal, group CEO of Mashreq.
Looking ahead, 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.
