Mashreq's 9-month pre-tax net profit surges 9pc to $1.7bn
DUBAI, 14 hours, 16 minutes ago
Leading UAE bank Mashreq has delivered strong financial performance for the first nine months with a pre-tax net profit of AED6.5 billion ($1.7 billion), indicating a notable 9% growth over the same period last year, despite an increase in corporate income tax with almost AED500 million ($136 million).
Announcing the results for the nine-month period ended September 30, this growth in net profit is attributable to a 13% year-on-year surge in net interest income, as well as 21% year-on-year increase in non-interest income.
The cost-income ratio at 27.9%, highlights the bank’s strong overall performance and operational efficiency.
The bank continued its focus on cost efficiency through digitalization and innovation, coupled with ongoing investments in business growth, enhancing client experience and strengthening of the overall operational resilience.
Operating profit too rose from AED5.6 billion to AED6.6 billion for the nine-month period, representing a 17% increase compared to the same period in 2023.
According to Mashreq, the principal drivers of this increase are strong business growth with healthy margins, the benign interest rate environment, and relative low risk costs.
Risk costs, it said, continues to be low at AED73 million, highlighting the banks prudent risk management practices and the positive economic climate of most markets Mashreq operates in.
Mashreq’s Return on Equity (ROE) reached 25.8% for 9M 2024, showcasing the management’s commitment to deliver optimal value to shareholders.
On its robust liquidity and capital position, Mashreq said this was indicated by a Liquid Assets ratio of 31% and a Liquidity Coverage Ratio of 129% as of September 2024.
As of September 2024, the bank’s capitalization levels have further strengthened compared to the end of 2023, reflecting the bank’s commitment to maintain a robust financial position.
On the solid performance, Chairman Abdul Aziz Al Ghurair said: "Mashreq’s financial results reflect our alignment with the UAE’s broader economic growth. Our focus on innovation, sustainable finance, and strategic market positioning keeps us ahead, seizing emerging opportunities while managing risks effectively."
"As we diversify revenue streams, enhance customer journeys, and lead in digital transformation, our commitment to long-term value creation remains steadfast. We are proud of our achievements and remain focused on delivering our strategic priorities, supporting the nation’s growth and prosperity," he stated.
Group CEO Ahmed Abdelaal said: "Our strong performance in the first nine months of 2024 underscores Mashreq’s strategic direction and operational resilience in navigating dynamic market conditions. Profit before tax rose 9% to AED 6.5 billion, reflecting the success of our growth story combined with cost discipline and sound risk management."
"Non-interest income now accounts for 30% of total operating income, showcasing our ability to generate value beyond traditional banking and diversify our revenue streams," he added.-TradeArabia News Service
