The lender primarily attributed this profit spike to higher net interest income and margins amid a higher interest rate environment. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Mashreq Bank posted a record level of profit in 2023, soaring 130 per cent to Dh8.6 billion. The Dubai-listed lender primarily attributed this profit spike to a rise in net interest income and margins, amid a high interest rate environment.

The bank disclosed that net interest income and income from Islamic financing had grown by an impressive 68.7 per cent, totaling Dh7.71 billion, with non-interest income also increasing by 13  per cent to Dh3.1 billion. This boosted the bank's operating profit to Dh7.5 billion, rising from Dh4.4 billion a year earlier.

"We have achieved robust growth in our international operations, notably expanding into new markets such as Pakistan and Oman," said Ahmed Abdelaal, Group CEO.

"Additionally, our intensified efforts in well-established markets like the UK, Hong Kong, and the US is primed to fuel future growth. Furthermore, our heightened focus on established markets, within the GCC and Egypt, further solidifying our growth prospects.

"Looking ahead, our course and position remain resolute, even in the face of ongoing uncertainty. It is imperative, however, that we brace ourselves for the normalisation of interest rates, which will necessitate adjustments in operational strategies to align with this new reality."

Abdul Aziz Al Ghurair, Mashreq Chairman, said: “With the UAE banking sector reaching a historic high, and total assets crossing the Dh4 trillion mark, we look forward to 2024 with a sense of optimism and readiness to uphold and extend this trajectory of dynamic and continued growth.“