Mashreq Bank announced a net profit of Dh9 billion for 2024, a 4% increase from the previous year, after accounting for Dh869 million in taxes. The bank’s net profit before tax reached Dh9.9 billion, up 12% year-on-year.
Total revenue for 2024 was Dh13.4 billion, reflecting a 24% growth compared to 2023. This includes a 9% increase in net interest income, achieved despite interest rate reductions during the year, and a 63% surge in non-interest income to Dh5 billion. The latter was driven by enhanced fee-generating activities and strong client engagement in foreign exchange, derivatives, and commodities.
The bank recognised a one-off net gain of Dh1.2 billion from the partial sale of its subsidiary, Neopay, for $385 million.
In 2024, Mashreq’s loans grew by 18%, funded by increased customer deposits, which rose to Dh161 billion across wholesale and retail segments. Current and savings accounts now represent 66% of total customer deposits. Total assets increased by 11% year-on-year to Dh267 billion, driven by loan growth in both wholesale and retail financing.
The bank maintained a strong liquidity position, with a liquid assets ratio of 34% and a liquidity coverage ratio of 150%. Capital adequacy ratios also improved, with the overall ratio increasing to 17.5%, the Tier 1 capital ratio rising to 16%, and the Common Equity Tier 1 ratio reaching 14.5%.
Asset quality remained robust, with a non-performing loans to gross loans ratio of 1.35% and a coverage ratio of 209%. The bank reported a net release of Dh166 million in allowances for impairments, attributed to high recoveries from non-performing loans and disciplined credit risk management.
