Rising tax expenses weigh on Mashreq’s 2025 profit

Dubai-listed bank Mashreq said net profit attributable to owners fell by double digits as operating income declined 6 percent in 2025.

Net profit dropped 23 percent to AED6.8 billion ($1.9 billion) last year, compared to AED8.9 billion a year earlier, the lender said in a statement.

Tax expenses increased to AED1.3 billion in 2025 from AED869 million in 2024, with the effective tax rate rising to 15.63 percent from 8.79 percent, largely due to the introduction of a UAE minimum top-up tax. However, impairment charges remained low at AED444 million.

Operating income slipped to AED12.6 billion from AED13.4 billion, driven by a 9 percent decline in fees and commissions and a 12 percent fall in non-interest income. However, investment income rose 53 percent to AED350 million.

Net profit attributable to owners for the fourth quarter dropped 44 percent year on year to AED1.8 billion as operating income fell 26 percent to AED3.2 billion.

Assets rose 25 percent year on year to AED335 billion as of December 31, 2025, supported by broad-based balance sheet growth across the UAE franchise.

Customer loans and advances increased 32 percent year on year to AED164 billion, while customer deposits grew by 27 percent to AED205 billion. 

Saif Al Ghurair Investment Group owns a 41.75 percent stake in the lender, with Abdullah Ahmed Al Ghurair Investment Co holding 31 percent.

Further reading:

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• Mashreq’s first half earnings hit as fee income drops 27%
• Dubai’s Mashreq enters Oman’s growing banking sector