Mashreq Bank delivered a strong financial performance in 2024, with a profit of `AED 9 billion, an increase of 4% on last year after taxes of AED 869 million. The net profit before tax of the bank registered an amount of AED 9.9 billion, up 12% in 2023.
PC: Daily Sabah
The Bank’s total income rose significantly to AED 13.4 billion, a rise of 24% on a year-on-year basis. Such growth demonstrates Mashreq’s ability to sustain the momentum seen, achieving a three-year compound annual growth rate of 32%.This sustained momentum clearly showcases the efforts put forward by the Bank in extending its operations, improving efficiencies, and capitalizing on market opportunities.
Mashreq’s net interest income managed a significant 9% year-on-year increase despite rate cuts in 2024, further strengthening margins backed by a quality balance sheet, while non-interest income gained 63% to AED 5 billion, where a diversified revenue strategy effectively drives the growth. The bank keeps its focus on inputs from its fee-based businesses, including higher customer engagements in FX, derivatives, and commodities. All the diversification strategies enabled sustained growth and delivered a more rounded financial footing.
The revenues of Mashreq in the year 2024 were also highlighted by the recognition of a one-time net gain of AED 1.2 billion from a strategic partial sale of a subsidiary, part of the bank’s wider vision of optimizing its asset portfolio and ensuring long-term value creation for stakeholders.
Mashreq also grew its total units loans meaningfully by an 18% rise mostly funded through increased customer deposits, which together reached AED 161 billion across both retail and wholesale segments. Another mechanism enhancing CASA’s proportion to total deposits from 66% leads to a more relaxed funding base, and great customer confidence towards Mashreq offerings.
Mashreq Bank has put up year-on-year loan and deposit growth with the total assets rising 11% and reaching AED 267 billion. Factors that contributed primarily to the aforementioned growth are strong wholesale and retail financing operations’ performance, showcasing the bank’s abiding focus on growth within the lending portfolio.
Chairman Abdul Aziz Al Ghurair made us aware of the fact that the bank’s performance is predominantly associated with innovative strides and solid resilience despite the changing global realities as well as regional vices. He avows that the UAE’s economic diversification effort and its position as a global hub for trade, finance, and technology have contributed to the financial sector growth of the country.
Al Ghurair said, “Reflecting on 2024, Mashreq’s journey has shown resilience, innovation, and excellence amidst a changing global and regional environment. The solidly growing economy of the UAE backed by innovation and continuous diversity within its economy is indeed fuelling it as a global hub for trade, finance, and technology.”
“This year, Mashreq has broken records with financial results including AED 9.9 billion net profit prior to tax, exceptional growth in digital, and international operations. This is a testimony to our unwavering commitment to deliver value to stakeholders while aligned with the UAE’s vision for sustainable growth and global leadership,” Al Ghurair said.
Mashreq Bank shall have put its experience of 2024 to the test on account of its ability to navigate through financial turmoil into strong financial growth. Moulded and directed towards strategic expansion, revenue diversification, digital innovation, the bank should now be in a better position to take on opportunities into the domestic and international markets.
