Sign in
It’s another day of bank-heavy earnings: Our friends at Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, and United Arab Bank all reported their 1Q 2024 results yesterday.
MASHREQ-
Our friends at Mashreq reported AED 2.0 bn in net income after tax in 1Q 2024, rising 25% y-o-y, according to an earnings report (pdf). On a pre-tax basis, net income came in at AED 2.3 bn (up 36% y-o-y), with the lender noting that its net income after tax remained strong despite the introduction of the 9% corporate tax.
Driving the growth: “The main drivers include exceptional business growth, healthy client margins, the current interest rate environment, and low risk costs,” Mashreq said. The bank also reported 23% y-o-y growth in its net interest income, rising to AED 2.1 bn, which accounted for 68% of the lender’s total revenues for the quarter. Non-interest income rose 29% y-o-y, coming in at nearly AED 997 mn.
What they said: “Mashreq has demonstrated remarkable strength and adaptability amid global challenges, maintaining solid asset growth, financing, and capital adequacy ratios,” said Mashreq Chairman Abdul Aziz Al Ghurair.
Looking ahead: “Our efforts to launch our Digital Retail Bank in Pakistan remain afoot, which will mark a significant step in our international expansion,” said Group CEO Ahmed Abdelaal. “Additionally, the initiation of corporate banking operations in the United Kingdom and the opening of a new branch in Mumbai are pivotal in our mission to deliver innovative banking solutions across diverse markets. In Egypt, the launch of Mashreq NEO represents a key development in offering simplified and innovative banking experiences, which align with our goals to enhance customer satisfaction,” Abdelaal said.
EMIRATES NBD-
Emirates NBD reported a bottom line after tax of AED 6.7 bn in 1Q 2024, up 12% y-o-y and 67% from the previous quarter,according to the bank’s earnings release (pdf). The company attributes the net income growth to “regional growth, increased transaction volumes, a low-cost funding base, and substantial impaired loan recoveries.”
Emirates NBD’s Shariah-compliant banking arm, Emirates Islamic, posted a record bottom line of AED 811 mn during the quarter.
Operating income rose 3% y-o-y to AED 10.7 bn during the quarter, on the back of loan and fee and commission growth, the bank said. Meanwhile, total assets crossed the AED 900 mn mark for the first time.
Looking ahead:The bank sees the UAE’s non-oil sector continuing to grow this year, and notes that it has yet to see impacts from geopolitical developments in the region on its operational environment, but remains “mindful of the potential risks.”
ADCB-
Abu Dhabi Commercial Bank (ADCB)’s net income after tax rose 14% y-o-y to AED 2.14 bn in 1Q 2024, according to the bank’s earnings release (pdf). Growth was driven by “solid loan growth” in the lender’s corporate and investment banking and retail banking businesses, with net loans from corporate and investment banking growing 28% y-o-y.
Net interest income increased 16% y-o-y to AED 3.3 bn, while non-interest income jumped 21% y-o-y to AED 1.29 bn. ADCB’s operating income stood at AED 4.59 bn in 1Q 2024, up 17% y-o-y. Total assets during the quarter totaled AED 594 bn, representing an increase of 19% y-o-y, with interest earnings assets making up AED 492 bn.
UNITED ARAB BANK-
United Arab Bank’s net income after tax rose 25% y-o-y to AED 68 mn in 1Q 2024, according to its earnings release (pdf). Meanwhile, total income increased 33% y-o-y to AED 163 mn during the quarter. The growth in net income came on the back of a “significant increase” in the banks’ assets, hitting AED 17.9 bn, as well as a prudent risk management approach, the bank said.
Looking ahead: “We will pursue our ambitious vision relentlessly and accelerate the pace of investments in our growth strategy with a focus on developing innovative products and services that meet all customer aspirations whilst upholding the highest standards of compliance and internal controls,” Chairman Sheikh Mohammed bin Faisal bin Sultan Al Qassimi said.
