Cairo, Egypt: 29 July 2026
Mashreq Bank PSC (MASQ) reported itsfinancial results for H1 2025.
Mashreq’s operating income reached AED 6.2 billion in H1 2025, reaffirming the Bank’s position as one of the region’s most resilient and forward-looking financial institutions. The performance reflects Mashreq’s continued ability to generate strong, broad-based growth despite a softening interest rate environment, supported by double-digit increases in both lending and non-interest income. Return on Equity remained robust at 20%, while the industry-leading Cost-to-Income ratio of 30% highlights ongoing efficiency even amid accelerated investment in digital transformation, AI-enabled capabilities, and strategic international market expansion. These results underscore Mashreq’s disciplined execution, diversified revenue model, and long-term focus on sustainable value creation for clients and shareholders alike.
Revenues
Robust topline performance underpinned by diversified growth, pricing discipline and a superior funding mix.
• Operating income rose to AED 6.2 billion in H1 2025, driven by 21% year-on-year growth in loans and robust contributions from investment and other non-interest income streams—highlighting Mashreq’s ability to capture value across cycles and deliver quality growth amid moderating interest rates.
• Net interest income increased 1% quarter-on-quarter to AED 2.0 billion in Q2 2025, as sustained volume growth and disciplined asset repricing offset the cumulative 100bps rate cut implemented since 2024. Net Interest Margin (NIM) remained strong at 3.2%, supported by continued enhancement of Mashreq’s funding profile, with the CASA ratio improving to a market-leading 69%, up from 62% year-on-year.
• Non-interest income expanded 17% year-on-year, propelled by a 55% surge in investment income and a 56% increase in other income streams. The Cross-Sell Ratio rose to 36%, a 5% year-on-year improvement, reinforcing the strength of Mashreq’s relationship-led strategy and deepening client penetration across businesses.
Expenses
Strategic investment in digital transformation, global talent, and international client platforms—delivered with best-in-class cost efficiency.
• Operating expenses increased by 11.5% year-on-year, reflecting focused investments to support Mashreq’s international expansion, upgrade digital infrastructure, and enhance client interface channels across all key markets. This includes continued advancement of next-generation platforms, automation, and GenAI-led initiatives, as well as targeted recruitment and upskilling of high-impact talent.
• Despite elevated investment activity, the cost-to-income ratio remained best-in-class at 30%, underscoring Mashreq’s operational discipline, scalable technology backbone, and sustained ability to drive efficiency while executing its strategic growth roadmap.
Net Profit
Resilient bottom-line delivery driven by core strength, global expansion, and capital efficiency—despite higher tax headwinds.
• Profit Before Tax reached AED 4.1 billion in H1 2025, underscoring the continued strength of Mashreq’s core banking franchise and the momentum across key business lines. This performance was achieved despite a softer rate environment, normalization of risk costs, and sustained strategic investments in digital innovation and international expansion across Türkiye, Oman, and Pakistan.
• Net Profit After Tax stood at AED 3.5 billion, reflecting Mashreq’s ability to deliver solid earnings and maintain profitability in the face of a significantly higher tax burden following the implementation of the UAE’s 15% global minimum tax under the Pillar Two framework.
• Return on Equity (ROE) remained strong at 20%, illustrating the Bank’s ongoing ability to generate superior shareholder returns through disciplined capital allocation, a capital-light operating model, and diversified revenue streams.
• Mashreq’s earnings profile remains balanced and resilient, demonstrating its capacity to sustain profitability while continuing to invest in long-term growth across digital platforms, strategic markets, and client-centric verticals.
H.E. Abdul Aziz Al Ghurair, Chairman, Mashreq, said: ‘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. 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 AED 760 billion by March of this year.’
Ahmed Abdelaal, Group Chief Executive Officer, Mashreq, said: ‘Mashreq’s performance in the first half of 2025 reinforces the strength of our business model and our disciplined approach to sustainable, high-quality growth. Despite a more moderated rate environment and evolving global dynamics, we continued to deliver robust results—underpinned by strong client activity, a diversified earnings profile, and our unwavering commitment to innovation, efficiency, and value creation.
Our investment strategy remains sharply focused on future-proofing the organization. We are making measured yet impactful investments in upgrading our technology infrastructure, expanding our digital and international presence, and forming strategic partnerships that allow us to deliver best-in-class client experiences across all segments. These efforts are designed not just to enhance competitiveness but to embed long-term resilience and scalability into our operations.’
Looking Ahead
Mashreq’s first-half performance in 2025 reaffirmed the strength of its diversified business model, the trust it commands across domestic and international markets, and its disciplined approach to strategic execution. Looking ahead to the remainder of the year, 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.
