Dubai-based lender Mashreq reported a 39.2 per cent increase in operating profit at Dh4.4 billion for the year ended December 21, 2022, it said on Monday, while net profit stood at Dh3.7 billion.
Impairment allowance reduced to Dh497million during the same period on the back of improved asset quality and higher recoveries, and represents only 0.6 per cent of net loans, the bank added.
“Double-digit growth was recorded across each and every business unit in 2022. These outcomes were delivered at the same time as a new brand identity, ‘Rise Every Day’, which comes from Mashreq’s strong belief in helping our clients to succeed and to fulfil their aspirations, supporting our people to realize their ambitions and to facilitate building better lives and livelihoods in the society through hard work and innovation while delivering the best-in-class banking experience,” said Abdul Aziz Al Ghurair, Chairman of Mashreq.
“After such a transformative year, Mashreq can look forward with great confidence to shaping the future of finance through innovation, convenience, trust, and an unmatched customer experience through our products and services.”
The bank’s non-interest income to operating income ratio stood at 39 per cent during the period.
Total loans and advances increased by 10.8 per cent at Dh90.3 billion, while loan-to-deposit ratio remained stable at 79.4 per cent (compared to 80.3 per cent in December 2021).
“During 2022, our retail banking operations (RBG) continued to be the backbone of our business and revenues grew by 42 per cent year-on-year. Not to mention that our flagship digital solutions such as Neo and personal banking net profit grew by 43 per cent, while NeoBiz and NEOPAY have grown in net profit by 289 per cent and 37 per cent, respectively. Similarly, the corporate and investment banking group (CIBG) revenues grew strongly, with a 37 per cent year-on-year growth. The international banking group (IBG) remained focused on executing its strategic priorities and continued to strengthen the presence across its existing international markets with a YoY growth for IBG assets at 43 per cent and revenues at 25 per cent,” said Group CEO Ahmed Abdelaal.
