Mashreq's 9M pretax profit jumps 9% to Dh6.5 billion

Dubai: Mashreq reported a pre-tax net profit of Dh6.5 billion in the first nine months of 2024, indicating a notable 9 per cent increase over the same period last year, despite an increase in corporate income tax with almost Dh500 million.

The lender attributed the earnings growth to a 13 per cent year-on-year surge in net interest income, as well as 21 per cent year-on-year increase in non-interest income. "Principal drivers of this increase are strong business growth with healthy margins, the benign interest rate environment, and relative low risk costs," it added.

"Our solid organic expansion carried through the third quarter, highlighted by a 12 per cent year-to-date growth in lending and a 7 per cent uplift in customer deposits," the lender said in a statement.

"The growth in loans and advances demonstrates our commitment to meeting clients’ financing needs across various sectors, while the uptick in deposits signifies increasing customer confidence and an expanding client base. This balance sheet growth positions us favorably to seize emerging market opportunities and support sustainable growth."

Ahmed Abdelaal, Group Chief Executive Officer of Mashreq said: “This year has been pivotal in expanding our footprint and enhancing digital capabilities. We launched the fully digitized NEO CORP platform for our wholesale banking customers clients in Bahrain, Kuwait, with Qatar to follow very soon, as a part of the initial roll out and made our first corporate banking loan transaction in the UK, strengthening our presence in key markets.

"Our focus remains on digital transformation, operational resilience, and client-centricity. The growth of NEO CORP and record activations on NEO BIZ highlight our leadership in corporate and business banking. As we look ahead to 2025, we will continue to deliver value to our clients and stakeholders through innovation and commitment to our strategy, ensuring Mashreq’s leadership in an ever evolving financial landscape.”