Mashreq Releases 1Q 2024 Financial Results: Paving the Way for Sustainable Growth.

Mashreq is pleased to disclose its financial results for the first quarter of 2024, demonstrating the bank’s steadfast commitment to strategic priorities centered on client-centricity, operational and financial efficiency, robust risk management, and a people-first culture. These results emphasize the success of Mashreq’s strategic initiatives.

• Net Interest Income continues its strong trajectory: The 23% rise in Net Interest Income stemmed from a significant expansion of the balance sheet and robust client margins. Furthermore, non-interest income saw a marked increase of 29% over the previous year.
• Significant quarterly balance sheet growth: The ongoing organic growth momentum is evidenced by a 7% rise in loans and advances and a 6% increase in customer deposits year-to-date, continuing the trends established last year.
• Enhanced Financial Standing and Improved Operational Efficiency:Capital Adequacy Ratio Climbs to 17.7% highlighting the Bank’s Sustained Resilience in a Dynamic Environment; Moreover, a Return on Equity of 28.0% together with a Cost-Income Ratio of 26.7% demonstrates Mashreq’s Exceptional Financial Performance.

H.E AbdulAziz Al Ghurair, Chairman of Mashreq:

“The UAE’s economy continues its upward trajectory, buoyed by robust policies and a conducive environment for investment. The recent projection by the International Monetary Fund underscores the resilience and potential of our nation’s economy. As highlighted in the World Economic Outlook, the UAE is poised for a GDP growth of 4.2% in 2025, reflecting confidence in the country’s policies and ability to attract talent and foreign direct investment across key sectors such as real estate, travel and tourism, and retail. Additionally, the current high oil prices further support our economic growth.

Mashreq, has demonstrated remarkable strength and adaptability amid global challenges, maintaining solid asset growth, financing, and capital adequacy ratios. These indicators reflect the sector’s flexibility and resilience to adapt to the changes the world is witnessing.

The 2024 Brand Finance report recognizes Mashreq as the fastest-growing banking brand in the Middle East, with our brand value increasing by an extraordinary 200% over the past three years. This growth underscores our strategic foresight, adaptability, and dedication to customer-centric innovation. The distinction of Mashreq NEO as the strongest digital banking brand in the UAE further underscores our capability to provide leading-edge solutions to our clients.

Mashreq’s strategic positioning within the banking ecosystem aligns with the broader banking outlook across the Gulf Cooperation Council region, which reflects continued growth in the non-oil economy and supportive operating conditions. As Mashreq continues to navigate and contribute to this dynamic environment, we remain steadfast in our commitment to driving sustainable growth and delivering exceptional value to our stakeholders.”

Ahmed Abdelaal, Group Chief Executive Officer, Mashreq:

“Our Q1 2024 financial results have provided a robust start to the year, showcasing a significant 25% increase in net profit to AED 2.0 billion, despite the new Corporate Income Tax of 9% in the UAE. On pre-tax basis our Net Profit stood at AED 2.3 billion representing an increase of 36% like for like. This remarkable growth is fueled by substantial income expansion and reduced risk costs, highlighting our unyielding commitment to operational resilience and efficiency. Our net interest income has experienced a substantial 23% growth, demonstrating the effective expansion of our balance sheet and resilient client margins. Additionally, our non-interest income has surged by an impressive 29% year-on-year, representing 32% of our total income reflecting the versatility and revenue resilience of our bank.

As we continue to expand, our operational resilience remains a cornerstone of our growth and expansion strategies. It has allowed us to adapt swiftly to economic shifts, maintain service excellence during rapid expansion, and manage risks effectively.

Our efforts to launch our Digital Retail Bank in Pakistan remain a foot, which will mark a significant step in our international expansion. Additionally, the initiation of corporate banking operations in the United Kingdom and the opening of a new branch in Mumbai are pivotal in our mission to deliver innovative banking solutions across diverse markets. In Egypt, the launch of Mashreq NEO represents a key development in offering simplified and innovative banking experiences, which align with our goals to enhance customer satisfaction.

The success of our New Mashreq App in the UAE, evidenced by approximately 580,000 downloads and an excellent App Store rating in the last six months, highlights our dedication to exceptional customer service. This is part of our broader commitment to operational resilience, ensuring we maintain high standards of service delivery across all touchpoints.

In our pursuit of environmental stewardship and community engagement, we are proud to advance our Climb2Change initiative. Having completed the first phase of our mountain clean-up and partnering with Emirates Nature-WWF, we are committed to protecting to protect the biodiversity in the UAE.

As we navigate 2024, our focus on leveraging our core strengths, nurturing a culture of innovation, and pursuing sustainable growth remains unwavering. Our employees are key to our success, and we look forward to seizing new opportunities, continuing to deliver significant value to all stakeholders.”