SODIC reports highest ever quarterly sales + Mashreq reports 9M earnings

Earnings o'clock: It was a busy day for earnings with both our friends at real estate developer SODIC and UAE-based lender Mashreq Bank reporting their earnings for 3Q 2024 and the first nine months of the year.

SODIC REPORTS HIGHEST EVER QUARTERLY SALES-

SODIC’s Ogami pushes the company’s sales to record highs: Real estate developer SODIC reported EGP 31 bn in gross contracted sales in the third quarter of the year — a quarterly record for the company — which the developer attributed to “robust demand” for its new Ogami development on the North Coast, the company said in its latest earnings release (pdf). Net income was up 45% y-o-y to EGP 309 mn in the quarter and revenues increased 14% y-o-y to EGP 2.4 bn.

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It’s been a good year so far for SODIC: On a 9M basis, the company has seen its revenues rise 26% y-o-y to EGP 6.3 bn, while its net income jumped 71% y-o-y, coming in at EGP 935 mn. Its gross contracted sales rose the highest, noting a 101% y-o-y increase to EGP 39.8 bn during the first nine months of the year.

The breakdown: North Coast projects accounted for 72% of the company’s total contracted sales for the nine-month period, with the Ogami project making 54% of total sales. West Cairo projects contributed 24% of total sales.

Remember: SODIC broke ground on its 440-acre Ogami development in Ras El Hekma in September. The hospitality project was planned by the DLR Group and includes a Nobu hotel, restaurant, and residences, alongside 800 meters of pristine beachfront.

What they said: “Our strong performance across all financial metrics is a testament to the strength of our brand and the confidence our customers have in our ability to consistently create value for them. We are proud to have made strong strides in our hospitality and retail platforms in 2024, further strengthening our customer experience which continues to set SODIC apart,” said SODIC General Manager Ayman Amer.

MASHREQ REPORTS 9M 2024 EARNINGS-

Mashreq reported AED 5.8 bn in net income after tax during the first nine months of 2024, maintaining its position y-o-y, according to the lender’s latest earnings release (pdf). On a pre-tax basis, the UAE-based bank’s net income rose 9% y-o-y to AED 6.5 bn, with the lender noting that its net income after tax remained strong despite the corporate income tax rising by an additional AED 500 mn.

Driving the growth: “Principal drivers of this increase are strong business growth with healthy margins, the benign interest rate environment, and relative low risk costs,” the lender said, pointing to a 13% y-o-y increase in net interest income — which recorded AED 6.3 bn during the nine-month period — and a 21% y-o-y jump in non-interest income which recorded AED 2.8 bn.

On a quarterly basis: Mashreq saw its net income dip 21% y-o-y in 3Q 2024 to record AED 1.8 bn and its pre-tax net income fall 15% y-o-y to AED 2.0 bn.

What they said: “Our strong performance in the first nine months of 2024 underscores Mashreq’s strategic direction and operational resilience in navigating dynamic market conditions,” CEO Ahmed Abdelaal said.

A year for expansion: “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,” the CEO said.

Remember: Mashreq Neo Egypt launched in Egypt earlier this year with the aim of fulfilling clients’ on-the-go banking needs.

** We spoke to the bank’s head of Neo and personal banking Radu Topliceanu to learn more about what’s in the pipeline for Mashreq Neo. Check out the interview here.