Mashreq sees 17% rise in operating profit, posts Dhs1.4bn net profit for H1 2022

 Mashreq Bank has reported its financial results for the period ended June 30. The bank’s operating income in H1 2022 increased by 15 per cent over 2021 to Dhs3.3bn, primarily due to increased net interest income and income from Islamic financing.

It’s non-interest income to operating income ratio continues to remain high at 44.2 per cent (47.5 per cent as of December 2021). The bank’s operating profit at Dhs1.9bn is a 17 per cent increase compared to the corresponding period in 2021, as a result of higher operating income. Net profit posted was a healthy Dhs1.4bn.

The bank reported growth of 8 per cent year-to-date (YTD) in customer deposits, reaching Dhs109.3bn. Its liquid assets ratio stood at 27.6 per cent for June 2022 (29 per cent in December 2021). Total loans and advances increased by 10 per cent YTD to Dhs89.7bn. Loan-to-deposit ratio remained stable at 82 per cent at the end of June 2022.

Impairment allowance reduced to Dhs466m from Dhs1.5bn in H1 2021. The ratio of non-performing loans to gross loans declined to 4.6 per cent as of end of June (5.2 per cent as of December 2021). Total provision for loans and advances reached Dhs6.6bn and coverage ratio improved to 132.1 per cent as on June 30 (128.2 per cent in December 2021).

Looking ahead on a strong note
AbdulAziz Al Ghurair, chairman of Mashreq, said: “I am delighted to announce that Mashreq Bank has posted a healthy growth in net profits for the first half of 2022. As we continue to operate in increasingly uncertain economic times, we registered a net profit of Dhs1.4 bn, which is a great achievement and one everyone associated with the bank can be, quite rightly, proud of.”

“This growth was mainly driven by an increase in operating profit, which was up 17 per cent compared to H1 2021 as a result of higher operating income. Our non-interest income to operating income ratio, at 44.2 per cent, remains one of the most robust in the industry and is also a true testament to the constant drive of our teams towards innovation, based on our fundamental customer-centric approach.”

Ahmed Abdelaal, group CEO, Mashreq Bank, said: “The first six months of 2022 has delivered outstanding results for Mashreq Bank and strengthened our position as a powerful digital disruptor. In the midst of challenging global financial headwinds, we saw our total assets increase by 7 per cent in the year, while our loans and advances experienced double-digit growth to reach Dhs89.7bn.”

Milestones achieved
Abdelaal said: “Mashreq was voted ‘Market Leader’ for its best-in-class transactional banking services by our customers in the 2022 Euromoney Trade Finance Survey for the third consecutive year. As well as receiving this prestigious accolade in both the UAE and wider Middle East region, the bank also received the best service accolades for Africa, Pakistan and Qatar. Mashreq was also named ‘Best Digital Bank’ by Euromoney in the Middle East for the third consecutive year.”

“This year we have already launched several industry firsts, including the first phase of Neo NRI, the first ever non-resident account opening enabled from a UAE banking app. Our Neo NXT proposition, the first smart teen banking proposition targeting Gen Z, was launched alongside a strategic partnership with Galaxy Racer focused around the gaming community.”