Mashreq generated over AED 3.1 billion in operating income, supported by double-digit growth of balance sheet
Mashreq Bank PSC (MASQ) reported its financial results for Q1 2025. Mashreq continues to deliver market-leading returns, supported by best-in-class asset quality and a robust capital structure. The bank's first quarter of 2025 results underscores the strength and resilience of Mashreq's diversified business model, even in a softer interest rate environment.
Revenues
Mashreq delivered AED 3.1 billion in operating income, reflecting its resilience and strategic focus, as the Bank continued to seize market opportunities and drive performance.
• Mashreq's client asset growth combined with healthy client margins helped cushion the impact of the 100bps reduction in the UAE Central Bank's benchmark interest rate, limiting year-on-year Net Interest Margin (NIM) compression to just 62bps and remaining a strong NIM at 3.3%.
• Non-interest income increased by 16% year-on-year, underscoring the effectiveness of the bank's strategy to diversify revenue streams beyond traditional interest-based income, reducing total revenue exposure to interest rate fluctuations.
Net Profit
Mashreq delivered a solid quarterly Profit Before Tax of AED 2.1 billion, driven by strong balance sheet growth, including a 14% year-on-year increase in loans and advances and a 10% year-on-year rise in customer deposits, double digit growth in non-interest income, controlled expense growth and relative low risk costs. Return on Equity (ROE) of 21% reflects strong profitability and effective capital deployment, underscoring the banks disciplined execution of its growth and digital strategies and underlying its financial strength.
Expenses
Ongoing strategic investments in digital transformation and international expansion led to marginal increase in operating expenses. Operating expenses increased by 9.5% year-on-year while Cost-to-Income Ratio stood at 29% compared to 27% in Q1 2024 and 30%(1) in full-year 2024.
H.E. Abdul Aziz Al Ghurair. Chairman, Mashreq said: 'The beginning of 2025 marks another strong chapter in Mashreq's journey of innovation, resilience and regional leadership. As the UAE and the broader GCC region continue to accelerate their digital and economic transformation, Mashreq remains deeply aligned with these national priorities. We are expanding our reach, advancing our capabilities and enabling inclusive growth across markets'.
Ahmed Abdelaal, Group Chief Executive Officer, Mashreq said, 'Mashreq entered 2025 with strong momentum, delivering over AED 3 billion of operating income in the first quarter and achieving 14 percent year-on-year growth in loans and advances. These results reflect the continued strength of our diversified business model and our disciplined execution, even amid a more measured interest rate environment. We advanced several strategic priorities during the quarter, including the launch of Mashreq Oman and the successful pilot of digital retail banking in Pakistan. We also continued to strengthen our presence across key markets in MENA and Egypt, aligning our expansion strategy with client demand for more connected, innovative banking solutions'.
Mashreq delivered a solid and stable performance in Q1 2025, reflecting the strength of its diversified business model and disciplined execution. The Bank remains focused on driving forward its strategic priorities for 2025 — with innovation, regional growth, and an enhanced client experience at the core.
With a strong foundation and a forward-looking approach, Mashreq is accelerating its ambition to be a digital banking leader in the region. The continued rollout of its Banking-as-a-Service strategy is reshaping how financial services are delivered — creating scalable, seamless solutions that meet the evolving needs of clients across markets .
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