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Mashreq reports 33% increase in operating profit

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Mashreq is one of the leading financial institutions in the MENA region, with a net profit of AED2.6 billion (US$707.87 million) for the nine months ended September 30, 2022.

The bank said its operating profit was AED3.2 billion, an increase of 33.2% compared to AED9 million in 2021, thanks to solid operating income and control of operating costs.

Key Highlights:

* Strong growth in operating income and net profit

* Operating income rose 24.3% from the previous year to AED5.3 billion, mainly due to higher net interest income driven by organic growth in all business activities

* Mashreq’s non-interest income to operating income ratio continues to be one of the best in the industry at 42.2%

* Customer deposits up 7.8% YTD to AED109.4 billion

* Current asset ratio was 29.5% as of September 2022 (29.0% as of December 2021)

* As of September 2022, capital adequacy ratio is 15.2%, tier 1 capital adequacy ratio is 14.0%, very comfortable

* Total loans and advances up 12.1% YTD to AED91.3 billion

* Loan-to-deposit ratio stable at 83.5% at end-September 2022

* Non-performing loans to total loans fell to 3.6% as of September 2022 (5.2% as of December 2021)

* Gross loans and advances reached AED6 billion as at 30 September 2022, with coverage improved to 149.7% (128.2% in December 2021)

AbdulAziz Al Ghurair, Chairman of Mashreq, said: “As we approach the end of the year, I am delighted to announce that Mashreq Bank achieved a solid net profit of AED2.6 billion in the first nine months of the year. With rapid adoption by our customers in the UAE and beyond Our innovative digital services, these figures are a real testament to the hard work, commitment and dedication of the entire Mashreq team.”

“Our recently launched new brand identity ‘Rise Every Day’ reflects our new direction and aims to create a deeper, more personal connection with our customers and partners. The principles behind Rise Every Day come from Mashreq’s unwavering commitment to Belief in helping our clients succeed and fulfilling their aspirations, supporting our people in achieving their ambitions, and contributing to building better lives and livelihoods in society through hard work and innovation. These principles are at the heart of our professional DNA , has been ingrained in the DNA of every business we conduct for decades and governs our desire to shape the future of financial services through convenience, innovation and trust, while consistently delivering an unparalleled experience to our customers.”

Ahmed Abdelaal, Mashreq Group CEO, said: “I am delighted to report solid growth in our balance sheet for the first nine months of the year, and everyone at Mashreq can be incredibly proud of this achievement as we continue to strengthen our position in the A strong digital disruptor in the market. Our total loans and advances grew by 12.1% to AED91.3 billion, while our loan-to-deposit ratio remained stable at 83%.”

“The latest positive results are mainly due to the strong performance of our domestic and international businesses driving operating income up 24.3% year-on-year to AED 5.3 billion. Our non-interest income to operating income ratio of 42.2% also continued to grow significantly Above industry benchmarks.”

“Despite global financial headwinds, the bank will build on its strong performance so far in 2022. We have achieved this success responsibly, and we responsibly continue to deliver on our mission: to protect the environment, Develop corporate governance, support philanthropy and strengthen our commitment to society,” he said. -TradeArabia News Service

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