Recent Research

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  FIRST LOOK NOTES

  05 May 2025

  Mashreq Bank

  ACCUMULATE

  Last Closing Price

  240.00

  Target Price

  270.00

  Upside (%)

  +12.50%

  UAE Equity Research - Mashreq Bank (MASQ) 1Q25 - First Look Note

  MASQ’s non-funded income continued to grow and now accounts for 37.0% of total operating income in 1Q25, compared to 31.7% in 1Q24. Impairment charges increased substantially from AED 38 Mn in 1Q24 to AED 101 Mn in 1Q25.

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• 

  FIRST LOOK NOTES

  07 Feb 2025

  Mashreq Bank

  ACCUMULATE

  Last Closing Price

  242.00

  Target Price

  270.00

  Upside (%)

  +11.57%

  UAE Equity Research - Mashreq Bank (MASQ) 4Q24 - First Look Note

  Other income growth is driven by the one-off capital gain worth AED 1.2 Bn from the sale of 65% stake in IDFAA Payment Service LLC. Asset quality improved as its reported NPL ratio fell from 1.5% in 3Q24 to 1.4% in 4Q24.

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• 

  FIRST LOOK NOTES

  11 Nov 2024

  Mashreq Bank

  HOLD

  Last Closing Price

  238.00

  Target Price

  235.00

  Upside (%)

  -1.26%

  UAE Equity Research - Mashreq Bank (MASQ) 3Q24 - First Look Note

  Net advances grew 19.4% YOY and 4.1% QOQ to AED 119 Bn in 3Q24, while customer deposits grew 17.5% YOY and 1.4% QOQ to AED 156 Bn in 3Q24. NIMs declined 58 bps YOY and 2 bps QOQ to 4.2% in 3Q24, while cost-to-income improved from 30.7% in 3Q23 to 29.2% in 3Q24.

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• 

  FIRST LOOK NOTES

  31 Jul 2024

  Mashreq Bank

  HOLD

  Last Closing Price

  208.00

  Target Price

  219.00

  Upside (%)

  +5.29%

  Higher lending and impairment reversals boosted profitability

  Net advances grew 19.9% YOY and 3.0% QOQ to AED 114 Bn in 2Q24, while customer deposits grew 21.4% YOY but declined 1.0% QOQ to AED 154 Bn in 2Q24. NIMs declined 41 bps YOY and 27 bps QOQ to 4.2% in 2Q24, while cost-to-income grew from 26.5% in 2Q23 to 27.9% in 2Q24

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• 

  FIRST LOOK NOTES

  21 Jul 2024

  Mashreq Bank

  HOLD

  Last Closing Price

  159.00

  Target Price

  180.00

  Upside (%)

  +13.21%

  Growth in funded income and reversals of impairments boosted bottom-line

  MASQ registered 9.9% 2023 YTD growth to AED 99.3 Bn in 3Q23 driven by increased lending across all the sectors. Recorded a provisioning reversal of AED 395 Mn as compared to a loss of AED 30 Mn in 3Q23 owing to its prudent risk management practices. Customers deposits witnessed 16.7% 2023 YTD growth with CASA balance accounting for 63.2% of total deposits in 3Q23. Asset quality continued to improve with an NPL ratio of 2.0%, whereas provision coverage declined from 205.6% in 2Q23 to 193.0% in 3Q

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• 

  FIRST LOOK NOTES

  06 May 2024

  Mashreq Bank

  HOLD

  Last Closing Price

  191.00

  Target Price

  195.00

  Upside (%)

  +2.09%

  Strong growth in funded and non-funded income drove the bottom line

  MASQ registered 21.3% YOY and 0.1% QOQ growth in advances to AED 110.5 Bn in 1Q24. The Bank reported 24.7% YOY growth in net profit to AED 2 Bn in 1Q24 despite the introduction of 9.0% corporate tax. Customer deposits witnessed 29.4% YOY and 6.3% QOQ growth with CASA balance accounting for 62% of total deposits in 1Q24. MASQ’s shareholders approved a robust dividend of AED 18.5 per share for the year 2023, resulting in a strong dividend yield of 9.7%.

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