Mashreq Bank Reports 4% Profit Increase for 2024, Reaches AED9 Billion
Dubai-based Mashreq Bank has announced a robust 4% growth in profit for 2024, with net profits reaching AED9 billion ($2.5 billion), reflecting the bank’s strong performance despite external market pressures. This solid growth highlights Mashreq's resilience, driven by strong revenues, expanding margins, and effective cost management.
Revenue Soars with 24% Year-on-Year Growth
Mashreq's revenue for 2024 totalled AED13.4 billion, marking an impressive 24% increase compared to the previous year. This revenue surge reflects a compound annual growth rate (CAGR) of 32% over the last three years, demonstrating the bank's sustained upward trajectory. The bank's ability to maintain strong margins is particularly noteworthy, with net interest income increasing by 9% year-on-year despite previous interest rate cuts. This is a clear indication of Mashreq's strategic focus on expanding its balance sheet with high-quality assets.
Significant Surge in Non-Interest Income
Non-interest income for the year saw a remarkable 63% increase, amounting to AED5 billion. The surge was driven by strong fee-generating activities, as well as outstanding performances in foreign exchange, derivatives, and commodities markets. These areas proved to be key revenue drivers for Mashreq, complementing its core banking activities.
One-Time Gain from NeoPay Divestiture
In addition to the strong core business performance, Mashreq recorded a significant one-time net gain of AED1.2 billion from the partial divestiture of a subsidiary. In September 2024, the bank sold a 65% stake in its payments subsidiary, IDFAA Payments (NeoPay), for $385 million. This strategic move further bolstered Mashreq’s financial results for the year, contributing positively to the bottom line.
Loan Growth and Strong Customer Deposits
Mashreq’s loan portfolio grew by 18% on a year-on-year basis, supported by a substantial increase in customer deposits, which reached AED161 billion. Current account savings accounts (Casa) accounted for a solid 66% of total customer deposits, indicating a strong and stable funding base for the bank’s lending operations.
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Total Assets and Overall Growth
Mashreq’s total assets increased by 11% over the year, reaching AED267 billion. This growth underscores the bank's solid position within the UAE banking sector, as well as its ability to adapt to changing market dynamics while continuing to expand its business operations.
Mashreq's strong financial results for 2024 signal continued growth and resilience in the face of global economic challenges. With a strategic focus on expanding its balance sheet, diversifying revenue streams, and capitalising on opportunities in key sectors such as foreign exchange and payments, Mashreq is well-positioned for sustained success in the coming years.
In conclusion, Mashreq Bank’s 2024 results reinforce its status as one of the leading financial institutions in the UAE, showing the bank’s ability to balance robust growth with strategic decision-making and sound financial management.
