UAE’s Mashreq bank posts net profit of Dhs2.6bn for Q3 2022

Mashreq posted a net profit of Dhs2.6bn for Q3 2022, the bank said in a statement showcasing its financial performance for the nine months ending September 30.

The bank added that the operating income has increased by 24.3 per cent over the previous year to Dhs5.3bn, mainly due to increased net interest income driven by organic growth across all business activities.

The non-interest income to operating income ratio was at 42.2 per cent. The operating profit at Dhs3.2bn represented a 33.2 per cent increase compared to the same period in 2021 as a result of healthy operating income.

Customer deposits reached Dhs109.4bn, reflecting a growth of 7.8 per cent year to date. The liquid assets ratio stood at 29.5 per cent as of September (was 29 per cent in December 2021).

The bank saw a healthy growth in the loan portfolio, with total loans and advances increasing by 12.1 per cent year to date to Dhs91.3bn.

Commenting on the results, AbdulAziz Al Ghurair, chairman of Mashreq, said, “As we approach the end of the year, it is my pleasure to announce a healthy net profit of Dhs2.6bn for Mashreq Bank for the first nine months of the year. With the rapid adoption of our innovative digital services by our customers in the UAE and beyond, these figures are a true testament to the hard work, commitment and dedication of the entire team at Mashreq.”

Ahmed Abdelaal, group CEO, Mashreq, added, “Over the last nine months, we have launched innovative new products, including Mashreq Business Banking Value Added Services, our non-banking business services platform enabling business success and helping SMEs do business better. We have joined the United Nations Global Compact initiative – a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices.

“We also made good headway in embedding ESG practices, with the development of a robust sustainability framework and initiatives that are being deployed across our network in addition to the escalation of our regional and international engagement to support and sponsor some of the most prestigious global events in this domain over the coming months. This quarter also marked the launch of our inaugural $300m Additional Tier 1 offering in Q3, which attracted orders of more than $500m, further strengthening Mashreq’s capital structure and leverage ratios, and positioning the bank for further balance sheet growth.”

Abdelaal said: “Despite the financial headwinds enveloping the world, the bank remains on point to build on the robust results achieved so far in 2022. This success was achieved, with our customers at the front and center, in a responsible fashion as we continue our mission to preserve the environment, develop corporate governance, support philanthropy and strengthen our commitment to society.”