Mashreq's H1 2025 net profit falls 14% on higher taxes
Total net profit for the first half of the year reached AED 3.47 billion ($945.4 million), marking a 14% drop from a year earlier.
For the second quarter of 2025, net profit stood at AED 1.68 billion, dropping by 16% year-on-year.
The decline in net profit was mainly due to a 'significantly higher tax burden' following the UAE's implementation of 15% global minimum tax, the bank confirmed on Tuesday. The bank's provision charges also went up to AED 245 million.
'Income tax expense of AED 604 million in H1 2025 up by 35% year-on-year impacted the net profit after tax,' Mashreq noted.
Despite lower net profit, the bank said its operating income has remained robust at AED 6.2 billion for the first six months of 2025, supported by increased loans and advances (up by 21%) and non-interest income (up by 17%).
The lender also noted that its cost-to-income ratio is at 30%, while its balance sheet and asset quality remained strong. Customer deposits grew by 15%, non-performing loan (NPL) ratio improved to 1.2% and NPL coverage ratio stood at 210%.
(Writing by Cleofe Maceda; editing by Brinda Darasha)
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