Mashreq bank’s net profit rises 122% in first 9 months of 2023

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Dubai’s Mashreq announces its financial results for the first nine months of the year continuing its strong sustainable growth trajectory and enhancing shareholder value with an earnings per share of Dhs28.75.

Mashreq’s net profit has soared to Dhs5.8bn for the period, a substantial increase of 122 per cent year-on-year. This performance is attributed to the bank’s growth strategy, strong operating performance, efficient cost management, and prudent risk management capabilities, the bank said.

The bank demonstrated a positive jaws ratio of 34.8 per cent for the period, and the cost-iIncome ratio has improved by over 8 per cent year-on-year, indicating effective control over operating costs while enabling continued investments.

Operating profit has surged from Dhs3.2bn to Dhs5.6bn during the period, representing a remarkable 73 per cent increase compared to the same period in 2022.

The allowance for impairments has experienced a net release of Dhs341m, driven by a decrease of 69 per cent year-on-year in low-risk charges, amounting to Dhs244m.

Mashreq’s net profit has soared to Dhs5.8bn, a substantial increase of 122 per cent year-on-year. This performance is attributed to our successful growth strategy, commitment to customer excellence, strong operating performance, efficient cost management, and prudent risk management capabilities.

Return on equity (ROE) was at a record-high at 32.1 per cent, double the figure compared to last year.

The increase in operating income and net profit was primarily attributed to a significant 82 per cent increase in net interest income.

According to the bank, the growth resulted from several factors, including the expansion of its balance sheet, healthy client margins, and the prevailing high-interest rate environment.

Additionally, the bank’s non-interest income has reached Dhs2.3bn, marking a notable 8.1 per cent year-on-year growth for the period.

Mashreq’s Net Profit surges 122% to AED 5.8 billion in the first 9 months of 2023 driven by robust income growth and low risk cost.

H.E. Abdul Aziz Al Ghurair, Chairman of Mashreq said: “The UAE banking sector continues to demonstrate remarkable resilience and growth, laying a… pic.twitter.com/U7bFxJOJWj

— Mashreq (@MashreqTweets) October 26, 2023

Mashreq demonstrates resilience and growth

AbdulAziz Al Ghurair, chairman of Mashreq, said, “The UAE banking sector continues to demonstrate remarkable resilience and growth, laying a strong foundation for the entire financial landscape of the country. Our recent achievement, a remarkable 122 per cent year-on-year surge in net profits, stands as a testament to Mashreq’s enduring strengths and forward momentum. However, our vision extends beyond numbers.

“At Mashreq, we are firm in spearheading the region’s sustainability journey by offering tailored financial solutions that catalyse the transition to a greener economy, paving the way for the UAE’s goal of Net Zero by 2050. Through our association with COP28, we reiterate our dedication to combating climate change and championing a sustainable tomorrow. It is a time of reinvention, of looking ahead, and ensuring that as leaders in the banking industry, we not only drive profits but also champion the cause of a sustainable future for all.”

 Ahmed Abdelaal, group CEO, Mashreq, said: “Looking ahead, our strategy is multifaceted. Beyond financial investment, we aim to elevate the customer experience, fortify our security measures with cutting-edge fraud prevention, and optimise operations through automation. We are enthusiastic about amplifying our digital capabilities, especially by harnessing AI and nurturing flagship digital platforms like Neo and NeoBiz. Our journey has been commendable, but our vision remains expansive, awaiting the countless possibilities the future holds.”