Mashreq Bank reported profit before tax of AED 2.1 billion for the first quarter of 2025, with operating income of AED 3.1 billion, but net profit after tax declined 12% year-on-year to AED 1.8 billion, the bank disclosed in its management discussion and analysis document. The year-on-year decline in net profit reflects the impact of interest rate reductions on the bank's net interest margin, which contracted over the period, together with a higher tax charge under the UAE's new 15% minimum top-up tax; these offset the positive effects of volume growth in loans and deposits.
The net interest margin contracted by 62 basis points year-on-year to 3.3%.
BALANCE SHEET AND CAPITAL
Loans and advances grew 14% year-on-year and customer deposits rose 10% year-on-year. Total assets reached AED 273 billion, up 9% year-on-year.
Capital adequacy was reported at 18.5% at the end of Q1 2025.
Mashreq is one of the UAE's oldest private banks, founded in 1967 and headquartered in Dubai, with a presence that spans retail, corporate and international banking segments.