Dubai-listed Mashreq has reported a decline in net earnings despite strong operating income, primarily due to increased tax obligations.
The bank recorded a total net profit of AED 3.47 billion (USD 945.4 million) for the first half of the year, reflecting a 14% decrease compared to the same period last year.
Net profit for the second quarter of 2025 amounted to AED 1.68 billion, representing a 16% year-on-year decline.
The reduction in net profit was largely attributed to a “significantly higher tax burden” following the UAE’s adoption of the 15% global minimum tax, the bank stated on Tuesday. Additionally, provision charges rose to AED 245 million.
Mashreq noted that its income tax expense stood at AED 604 million in H1 2025, up 35% year-on-year, which affected net profit after tax.
Despite the decline in net profit, the bank highlighted that its operating income remained solid at AED 6.2 billion for the first six months of 2025, supported by a 21% increase in loans and advances and a 17% rise in non-interest income.
The bank also reported a cost-to-income ratio of 30%, with both its balance sheet and asset quality remaining strong. Customer deposits rose by 15%, the non-performing loan (NPL) ratio improved to 1.2%, and the NPL coverage ratio stood at 210%.
