Mashreq Achieves Record Milestone as Total Assets Surpass AED 300 Billion with Strong Q3 Growth

Mashreq has marked a transformative period for the Bank.

Mashreq has delivered exceptional financial performance. Notably, the bank achieved significant growth throughout 2025’s first nine months. Additionally, operating income reached AED 9.4 billion. Moreover, this demonstrates robust profitability across all core business segments. Meanwhile, the third quarter impressed significantly with operating income of AED 3.2 billion. Furthermore, this represented a substantial 8% year-on-year increase. Also, it showed a 4% quarter-on-quarter uplift that exceeded expectations.

This remarkable performance reflects disciplined growth. Importantly, the bank expanded across diverse revenue streams. Consequently, operational excellence remained a key driver. Additionally, total assets surpassed AED 300 billion for the first time. Notably, assets reached AED 305 billion by 30th September 2025. Furthermore, this milestone represents a 20% year-on-year expansion. Also, it showed a 14% year-to-date increase. Equally important, this underscores Mashreq’s dominant position within the UAE banking sector.

Customer loans & advances expanded substantially. Specifically, they grew by 21% year-on-year. Meanwhile, customer deposits simultaneously grew by 20% year-on-year. Importantly, this dual expansion strengthened the overall balance sheet. Furthermore, net profit before tax reached AED 6.1 billion. Additionally, this showcased the bank’s unwavering ability to maintain strong profitability. Moreover, this occurred amid moderating interest rate environments. Consequently, net profit after tax settled at AED 5.2 billion. Also, this represented a 2% quarter-on-quarter improvement. Notably, the bank achieved a return on equity of 20%. Therefore, this reflected consistent value generation for shareholders.

Net interest income rose notably. Specifically, it climbed 6% quarter-on-quarter in Q3 2025. Additionally, it reached AED 2.1 billion during the third quarter. Meanwhile, net interest margin remained stable at an impressive 3.2% for the nine-month period. Importantly, this stability stemmed from disciplined asset repricing. Furthermore, the bank maintained a well-diversified deposit base. Notably, current account savings accounts (CASA) represent 66% of total deposits. Consequently, the high CASA ratio significantly offsets rate-driven margin pressures. Also, it maintained spread stability across the balance sheet.

Non-interest income demonstrated exceptional momentum. Specifically, it surged 20% year-on-year to AED 3.3 billion. Moreover, investment income increased by an impressive 50% year-on-year. Additionally, other income streams rose by 41%. Importantly, these diversified income sources contributed 35% of total operating income. Furthermore, this expansion reflects the bank’s deepening client relationships. Also, it demonstrates enhanced capabilities in capturing market opportunities. Additionally, trading portfolios performed exceptionally well. Consequently, the bank achieved across investment & trading portfolios.

The cross-sell ratio improved markedly. Specifically, it reached 35%, marking a near 5% year-on-year advancement. Importantly, this metric demonstrates Mashreq’s ability to deepen client penetration. Furthermore, it achieved a more balanced earnings distribution. Additionally, customer acquisition accelerated markedly throughout the period. Notably, expansion occurred through expanded transaction flows. Also, it included innovative product offerings across segments. Consequently, both personal & commercial segments benefited significantly.

Mashreq maintained industry-leading efficiency. Specifically, the cost-to-income ratio stood at 31%. Moreover, this reflects strategic investments in digital transformation. Additionally, artificial intelligence capabilities advanced significantly. Importantly, international expansion accelerated notably. Furthermore, operating expenses increased 13% year-on-year to fund these initiatives. Consequently, the bank pursued disciplined cost control. Also, automation, process streamlining & technology-enabled leverage drove efficiency. Additionally, this balanced approach ensures Mashreq sustains competitive advantages. Notably, the bank invested confidently in future-ready capabilities.

Strategic investments focused on innovation. Specifically, they targeted next-generation digital ecosystems. Additionally, artificial intelligence-driven operational platforms advanced. Importantly, international market expansion accelerated across key regions. Moreover, the bank expanded presence in Türkiye, Oman, Pakistan & India’s GIFT City. Notably, Pakistan’s commercial launch represented a particularly significant milestone. Furthermore, this validated Mashreq’s digital-first approach. Consequently, the bank now serves both individuals & businesses. Additionally, it operates within promising regional economies.

Impairment charges remained exceptionally contained. Specifically, they totalled AED 366 million. Moreover, this translated to a cost of credit of just 34 basis points. Importantly, this conservative approach underscores high asset quality. Furthermore, prudent risk management practices remained embedded. Additionally, the non-performing loan (NPL) ratio reached historic lows. Notably, it declined to 1.1% as of 30th September 2025. Importantly, this decreased from 1.5% in the prior year period. Consequently, this represents one of the lowest NPL ratios within the UAE banking industry.

Coverage ratios stood impressively. Specifically, they reached 235%. Moreover, this reflects Mashreq’s conservative provisioning methodology. Importantly, the bank demonstrated robust capacity to absorb credit losses. Furthermore, loan disbursements remained well-diversified. Additionally, strategically important sectors received focus. Notably, sectors included trade, manufacturing & infrastructure. Importantly, these sectors align with national development priorities. Furthermore, they support Mashreq’s calibrated growth strategy.

Capital adequacy remained exceptionally strong. Specifically, the capital adequacy ratio (CAR) stood at 16.8%. Moreover, the common equity tier 1 (CET1) ratio reached 14.2%. Additionally, the tier 1 ratio hit 15.5%. Importantly, these metrics remained comfortably above regulatory requirements. Furthermore, they were supported by solid internal capital generation. Additionally, conservative risk governance frameworks remained in place. Consequently, the bank maintained ample reserves. Also, sufficient capacity existed to fund growth. Notably, regulatory expectations were comfortably exceeded.

Liquidity positions remained similarly robust. Specifically, the liquid assets ratio reached 27%. Moreover, loan-to-deposit ratio settled at 76%. Additionally, liquidity coverage ratio (LCR) stood at 123%. Importantly, all metrics remained comfortably above regulatory thresholds. Furthermore, this reflected measured funding strategies. Additionally, stable deposit bases remained strong. Consequently, prudent liquidity risk management continued throughout operations.

The UAE’s corporate tax regime impacted results. Specifically, the bank adopted global minimum tax requirements. Moreover, tax expenses rose 49% year-on-year to AED 961 million. Importantly, this increased tax burden affected net profit outcomes. Furthermore, profitability remained firm despite challenges. Additionally, strong underlying income generation continued. Consequently, sustained cost efficiency remained evident throughout operations.

Mashreq’s earnings per share advanced. Specifically, EPS reached AED 24.57 for the nine-month period. Meanwhile, this represented a 13% decline from the prior year figure of AED 28.31. Importantly, this reduction primarily reflected the increased tax environment. Furthermore, it did not indicate deteriorating operational performance. Additionally, return on assets (ROA) stood at 2.3%. Consequently, this maintained strong asset productivity throughout operations.

The franchise demonstrated exceptional resilience. Specifically, it performed well across both domestic & international markets. Moreover, wholesale banking segments expanded 25% year-on-year. Additionally, assets reached AED 171 billion in total. Importantly, retail banking expanded 10% year-on-year. Furthermore, assets reached AED 35 billion in total. Consequently, this balanced growth trajectory ensures sustainable expansion. Also, it covered diverse client segments & geographic markets.

H.E. Abdul Aziz Al Ghurair, Chairman, emphasized significant achievements. Specifically, he noted surpassing AED 300 billion reflects disciplined strategies. Moreover, deep alignment occurred with evolving economic priorities. Additionally, the achievement came during exceptional resilience periods. Importantly, the UAE banking sector demonstrated exceptional dynamism. Furthermore, strong capital & liquidity positions supported growth. Additionally, improved asset quality remained evident. Consequently, steady growth occurred across key indicators. Notably, the financial system remains well-positioned. Also, it supports ongoing economic expansion.

Ahmed Abdelaal, Group Chief Executive Officer, highlighted sustained performance. Specifically, clear strategic vision drives operations. Moreover, disciplined operating model execution ensures results. Additionally, commercial launches in Pakistan reinforce international strategies. Importantly, expansion into India’s GIFT City marks pivotal steps. Furthermore, Mashreq now supports capital flows along vital corridors. Additionally, these corridors connect Asia, the Middle East, Europe & the United States. Consequently, the bank positions itself strategically. Also, it supports commerce across key regions.

Advanced digital technologies transformed operations. Specifically, artificial intelligence became embedded across systems. Moreover, this enhances client service delivery significantly. Additionally, risk management capabilities strengthened notably. Consequently, these innovations unlock new efficiencies. Also, they deliver more intuitive client experiences. Notably, impact scales across every business line. Furthermore, Mashreq remains focused on building ecosystems. Additionally, future-ready banking solutions drive delivery. Importantly, lasting value reaches all clients, shareholders & communities.

Looking forward strategically, Mashreq will advance agendas. Specifically, scalability remains a core focus. Moreover, innovation drives strategic direction. Additionally, intentional international growth represents key priorities. Importantly, deepening international presence across key markets continues. Furthermore, Türkiye, Oman, Pakistan & India’s GIFT City receive focus. Additionally, access to global funding & capital markets broadens. Consequently, initiatives reinforce strategic positioning. Also, Mashreq operates as a regionally anchored entity. Notably, global connectivity strengthens growth engines. Furthermore, this diversification ensures resilience.

Supported by strong fundamentals, Mashreq remains positioned. Specifically, strong capital bases provide foundations. Moreover, robust liquidity ensures flexibility. Additionally, industry-leading asset quality strengthens resilience. Consequently, the bank sustains profitable growth. Also, consistent returns reach shareholders. Notably, long-term value creation benefits stakeholders. Furthermore, commitment to sustainable growth continues. Additionally, inclusive expansion covers home & international markets. Importantly, Mashreq’s strategic direction remains clear. Consequently, operational focus drives excellence. Also, the bank establishes powerful foundations. Finally, sustained excellence throughout future periods becomes assured.

(Source: Zawya, Mashreq Bank PSC)

To read more on Finance News, head to the 🔗 link.