Mashreq Bank, listed in Dubai, reported a 12% decline in its net profit for Q1 2025 compared to the same period last year, as net interest income fell following interest rate reductions.
The bank’s net profit after tax stood at AED 1.8 billion (USD 490 million), down from AED 2.041 billion during the same quarter in 2024.
Mashreq attributed the 8% year-on-year drop in net interest income to a decrease in the net interest margin (NIM), which was impacted by the UAE Central Bank’s adjustment of rates.
“Net interest income fell due to a 62 basis point drop in NIM to 3.3%, following a 100 basis point rate cut by the UAE Central Bank,” Mashreq stated.
Despite the decline, the bank reported robust financial results, with operating income for the first quarter reaching AED 3.1 billion and a 14% year-on-year growth in loans and advances.
Non-interest income saw a 16% increase year-on-year, customer deposits grew by 10%, and the non-performing loan ratio improved to 1.3% from 1.4% year-on-year.
“These results reflect the continued strength of our diversified business model and our disciplined execution, even amid a more cautious interest rate environment,” stated Ahmed Abdelaal, Group CEO.
