Mashreq has announced its financial results for the first half of 2024 (H1 2024), logging a net profit of AED4 billion, reflecting a significant 14% increase year-on-year (YoY), largely driven by a 17% YoY increase in net interest income.
The bank’s non-interest income rose to AED 1.9 billion, demonstrating a robust 26% growth YoY. The net profit before tax grew by 24% YoY and stands at an impressive AED 4.5 billion.
Mashreq’s operating profit rose from AED3.7 billion to AED4.5 billion in H1 2024, representing a 21% increase compared to the same period in 2023.
“Our results demonstrate that, despite the challenging global environment, we are making excellent progress on our strategic priorities and achieving industry-leading financial performance. This progress was primarily driven by sustained, strong net interest income. Similarly, our high customer activity across the business led to a significant uplift in non-interest income, resulting in a second-quarter return on equity of 27.6%,” said Ahmed Abdelaal, the Group CEO at Mashreq.
“We continue to invest in our capabilities to accelerate digital transformation across our business and functions, enhancing customer journeys, improving the customer experience, and reducing costs and operational risks.”
Mashreq’s prudent risk management is evident, with risk costs kept low at AED 45 million. The bank achieved a return on equity (ROE) of 27.6% in H1 2024. The growth underscores the management’s dedication to operational efficiency, strategic capital allocation and maximising shareholder value.
The lender’s strong liquidity is demonstrated by a liquid assets ratio of 35.4% and a liquidity coverage ratio of 154.1% as of June 30, 2024.
