Mashreq’s journey stands as a testament to resilience, innovation, and excellence amidst a dynamic global and regional environment
Ahmed Abdelaal, Mashreq Group Chief Executive Officer
FinTech BizNews Service
Mumbai, January 30, 2025: Mashreq, one of the leading financial institutions in the MENA region, reported its financial results for the year 2024.
Mashreq has delivered another year of exceptional growth with a record AED 9.9 Billion Net Profit Before Tax in 2024.
HE Abdul Aziz Al Ghurair, Chairman of Mashreq, said: “As we reflect on 2024, Mashreq’s journey stands as a testament to resilience, innovation, and excellence amidst a dynamic global and regional environment. This year, Mashreq achieved record-breaking financial results, including a net profit before tax of AED 9.9 billion, alongside exceptional growth in our digital and international operations.”
Ahmed Abdelaal, Mashreq Group Chief Executive Officer, said: “2024 has been another transformative year for Mashreq, marked by record-breaking achievements and a steadfast commitment to delivering value for our customers, stakeholders, and communities. Our 24% year-on-year revenue growth and an impressive Return on Equity of 29% reflect the success of our strategy and our ability to adapt and thrive in dynamic market conditions.”
Double digit growth in Net Profit Before Tax reflects both the operational efficiency and revenue
momentum. A clear indication of the ability to generate industry-leading shareholder value.
Net Profit Before Tax reached AED 9.9 billion, a 12% increase in 2024 and underlining Mashreq’s solid financial foundation and efficient cost management.
• Even after an AED 869 million tax payment, Net Profit After Tax grew to AED 9 billion and increased 78%
quarter on quarter and 4% year-on-year.
Mashreq achieved AED 13.4 billion in revenue, representing a 24% increase year-on-year and
maintaining an impressive three-year CAGR of 32%. This remarkable growth demonstrates Mashreq’s ability to harness market opportunities effectively and build diversified income streams.
Expenses
Efficiency gains reflect the ongoing success in optimizing operational efficiency and advancing digital
transformation initiatives, while allowing for strategic investments.
Balance Sheet
2024 witnessed an 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 loan growth across.
Liquidity and Capital
Mashreq maintained a robust liquidity and capital position, reinforcing its ability to support growth while safeguarding against potential market disruptions.
Asset Quality Mashreq has continued to set industry benchmarks in credit quality, showcasing its strategic focus on prudent lending and robust asset monitoring practices.
Key highlights:
• Net Profit Before Tax reached AED 9.9 billion, a 12% increase in 2024 and underlining Mashreq’s solid financial foundation and efficient cost management.
• Even after an AED 869 million tax payment, Net Profit After Tax grew to AED 9 billion and increased 78%
quarter on quarter and 4% year-on-year.
• Net Interest Income grew by 9% year-on-year despite interest rate cuts in 2024, reflecting healthy margins
on the back of strong high-quality balance sheet growth.
• Non-Interest Income surged by 63% to AED 5 billion highlighting the continued emphasis on diversifying
revenue streams through robust fee-generating activities and strong client engagement in FX, derivatives, and commodities.
• Growth in Non-Interest Income reflects the resilience and scalability of Mashreq’s business model, which
continues to perform strongly amidst evolving interest rate environments.
• Mashreq 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.
• Cost-to-Income Ratio improved by 339 bps to 28%(1) in 2024.
• This improvement was registered despite an increase in operating expense by 11% year-on-year in 2024.
• Customer deposits increased to AED 161 billion in both wholesale and retail segments, with CASA now
representing 66% of total customer deposits.
• Liquid Assets Ratio was 34% and Liquidity Coverage Ratio stood at 150%, reflecting a prudent approach to
liquidity management and the ability to exceed regulatory requirements.
• Capitalization metrics further strengthened compared to FY 2023, with Capital Adequacy Ratio increasing to
17.5%(2), Tier 1 Capital Ratio rising to 16%, and CET1 Ratio reaching 14.5%.
• These levels highlight Mashreq’s sound capital management strategy, which ensures a solid foundation for further growth.
• Net release of AED 166 million in allowances for impairments was achieved through high recoveries from Non-Performing Loans and disciplined credit risk management and marks the second year of net releases.
• The Non-Performing Loans to Gross Loans ratio of 1.35% (1.30% in FY 2023) at the close of 2024 reflects one of the lowest levels in the industry, highlighting Mashreq’s disciplined and effective risk mitigation measures.
• Coverage Ratio of 209% in 2024 (247% in FY2023) is amongst the strongest in the sector and demonstrates
the prudent approach to safeguarding against potential credit losses while ensuring sufficient provisions to
withstand market volatility.
