Mashreq’s net profit climbs 25% to Dh2 billion in Q1 of 2024

The UAE’s Mashreq has published its financial results for the first quarter of 2024.

During this period, the bank recorded a 25% net profit year-on-year increase to Dh2 billion. The growth was supported by a 7% rise in loans and advances and a 6%  increase in customer deposits compared to Q1 of 2023.

Mashreq’s net profit on a pre-tax basis stood at Dh2.3 billion, up 36% YoY. Additionally, non-interest income reached nearly Dh1 billion, representing a 29%  growth compared to the previous year.

“This growth in operating income and net profit is primarily attributed to a 23 per cent year-on-year surge in net interest income,” the company said in a press release. “The main drivers include exceptional business growth, healthy client margins, the current interest rate environment, and low-risk costs.”

The bank’s cost-to-income ratio improved by 3.5% year-on-year, due to a “stringent control over operating expenses alongside continuous investments in client experience enhancements, risk management, and business expansion.”

The bank’s operating profit rose from Dh1.8 billion to Dh2.3 billion in Q1 2024, while risk costs decreased by 61% to Dh38 million, attributed to last year’s accounting change concerning general provisions and prudent risk management.

Earlier this year, the Dubai-headquartered bank reported a record net profit of Dh8.6 billion for 2023, a substantial 130% year-on-year increase.