Mashreq, one of the leading financial institutions in the MENA region, has announced its financial results for the year 2024, delivering another year of exceptional growth.
The bank’s net profit before tax reached a record AED 9.9 billion, reflecting a 12% year-on-year increase and reinforcing Mashreq’s strong financial foundation and operational efficiency.
Even after an AED 869 million tax payment, net profit after tax grew to AED 9 billion, marking a 78% quarter-on-quarter increase and a 4% year-on-year growth.
Mashreq achieved total revenue of AED 13.4 billion in 2024, a 24% increase year-on-year, with a robust three-year CAGR of 32%. The bank’s ability to capitalize on market opportunities and build diversified income streams remains a key driver of this sustained growth.
Net Interest Income increased by 9% year-on-year, despite interest rate cuts, driven by a strong, high-quality balance sheet. Non-Interest Income surged by 63% to AED 5 billion, highlighting the bank’s emphasis on diversifying revenue through fee-generating activities and strong client engagement in FX, derivatives, and commodities.
The bank also recognized a one-off net gain of AED 1.2 billion from the strategic partial sale of a subsidiary, demonstrating its ability to identify and capitalize on value-accretive market opportunities.
Mashreq’s commitment to optimizing operational efficiency and advancing digital transformation initiatives has driven significant efficiency gains, enabling strategic investments.The cost-to-income ratio improved by 339 bps to 28% in 2024.This improvement was achieved despite an 11% year-on-year increase in operating expenses.
2024 saw impressive loan growth of 18%, largely funded by an increase in customer deposits.Total assets increased by 11% year-on-year to AED 267 billion, driven by wholesale and retail financing growth.Customer deposits rose to AED 161 billion, with CASA now representing 66% of total deposits.Liquidity and capital positions remained robust, with a Liquid Assets Ratio of 34% and a Liquidity Coverage Ratio of 150%.
