Dubai: Mashreq Bank reported an operating income of Dh1.6 billion for Q1-2022, a gain of 11 per cent from a year ago, derived in large part by improved net interest income and that coming in from its Islamic financing. Net profit weighed in with Dh606 million in the first three months – that’s up on the Dh43 million Mashreq had in Q1-2021, when results were weighed down by the pandemic ripples.
“Mashreq has delivered a strong start to the new year, with Q1-22 showing robust year-on-year growth across key metrics, significant risk cost reductions and increased operating income,” said AbdulAziz Al Ghurair, Chairman.
“We anticipate that Mashreq will continue to forge its leading role as a digital challenger, advisor and partner for our corporates and SME development across the global markets. Additionally, armed with a sharp focus on the creation of advanced digital solutions, Mashreq will continue to contribute to the UAE national economy, the nation’s businesses and all those who live and work here.”
The bank’s capital adequacy ratio was at 14 per cent, while the liquid assets ratio came to 29 per cent. Cash and that due from banks totaled Dh48.9 billion.
Loans drive numbers
Loans and advances were higher by 5.9 per cent in these three months to Dh86.3 billion, while the loan-to-deposit ratio ‘remained stable’ at 82.8 per cent. Impairment allowance reduced to Dh252 million from Dh711 million a year ago. Non-performing loans to gross loans ratio dipped to 4.6 per cent as at end March from 5.2 per cent in December.
The total provision for loans and advances came to Dh6.4 billion and the coverage ratio improved to 131.6 per cent as on March 31.
“The bank’s digital and operational strategies were also fundamental to our improved performance in Q1, with the launch of new services and platforms that reflect Mashreq’s expertise in shaping the future of payments across the region,” said the Chairman.
