Mashreq Bank's Q1 2024 Profit Rises 25% To Dh2 Billion Amidst Business Expansion

Mashreq, one of the leading banks in the UAE, has reported a strong performance in the first quarter of 2024, with a net profit of Dh2 billion, representing a 25% increase year-on-year. The bank's success can be attributed to its robust business growth and solid margins.

One of the key drivers of Mashreq's performance is its net interest income, which grew by 23% compared to the previous year. This increase was a result of the bank's expansion of its balance sheet and healthy client margins. Additionally, non-interest income saw a significant growth of 29% year-on-year.

Mashreq's financial standing has also been enhanced, with its capital adequacy ratio climbing to 17.7%. This highlights the bank's resilience in a dynamic environment. Furthermore, the bank achieved a return on equity of 28% and a cost-income ratio of 26.7%, demonstrating its exceptional financial performance.

The bank's balance sheet has shown significant growth, with a 7% increase in loans and advances and a 6% increase in customer deposits year-to-date. This reflects the ongoing organic growth momentum that Mashreq has established.Mashreq's liquidity position remains solid, with a liquid assets ratio of 35.6% and a liquidity coverage ratio of 154% as of March 2024. The bank's capitalization level has also improved, with a capital adequacy ratio of 17.7% and a Tier 1 capital ratio of 15.5%. These figures highlight Mashreq's strong capital position and its ability to support its business growth.

In terms of asset quality, Mashreq has maintained a low non-performing loans to gross loans ratio of 1.3%, one of the lowest in the market. The bank's coverage ratio has also increased to 249.8% as of March 2024, indicating its prudent risk management practices.

Abdul Aziz Al Ghurair, Chairman of Mashreq, expressed confidence in the UAE's economy, citing the country's projected GDP growth of 4.2% in 2025. He emphasized Mashreq's strength and adaptability in the face of global challenges, highlighting the bank's solid asset growth, financing, and capital adequacy ratios.

Ahmed Abdelaal, Group CEO of Mashreq, highlighted the bank's remarkable financial results in the first quarter of 2024. Despite the new corporate tax imposed in the UAE, Mashreq achieved a net profit of Dh2 billion, representing a 25% increase year-on-year. Abdelaal attributed this growth to the expansion of the bank's balance sheet and resilient client margins. He also emphasized the bank's commitment to operational resilience and efficiency.

In terms of customer service, Mashreq's New Mashreq App has been well-received, with approximately 580,000 downloads and an excellent App Store rating in the last six months. The bank remains dedicated to delivering high standards of service across all touchpoints.

Mashreq has also been recognized for its achievements, receiving several prestigious awards. Brand Finance named Mashreq as the fastest-growing banking brand in the Middle East, with a brand value that has increased by 200% over the past three years. Mashreq NEO, the bank's digital banking brand in the UAE, was recognized as the strongest digital banking brand in the country.

Overall, Mashreq's financial results for Q1 2024 demonstrate its commitment to strategic priorities and its ability to deliver sustainable growth. With its strong financial standing, operational efficiency, and focus on customer-centric innovation, the bank is well-positioned for continued success.