UAE lender Mashreq reported a net profit of Dh1.6 billion on the back of a 96 per cent increase in operating profits for the first quarter 2023, the bank said on Thursday.
The bank also crossed the milestone of Dh200 billion in assets, it said.
Operating profit stood at Dh1.8 billion, driven by healthy operating income growth in the UAE and across other countries.
“Owing to robust growth in operating income, enhanced efficiencies, and improved risk position, Mashreq concluded the first quarter of 2023 with outstanding financial results, demonstrating nearly double year-on-year operating profits and crossing the Dh200 billion in total assets milestone,” said Chairman Abdul Aziz Al Ghurair.
“As a challenger bank, Mashreq actively participated in the UAE’s innovation ecosystem during Q1, becoming a founding member of the DIFC’s venture-building program, Launchpad. The Bank’s performance was further supported by the introduction of numerous platforms and digital journeys, both domestically and internationally, across retail, business, and corporate and investment banking,” he added.
During the quarter, total loans and advances increased by 5.6 per cent year-on-year at Dh91.1 billion, while the loan-to-deposit ratio stood at 75.8 per cent.
Impairment allowance reduced significantly to Dh96 million on the back of improved asset quality and represents only 0.1 per cent of net loans, and total provision for loans and advances reached Dh4.9 billion.
“We have maintained a strong liquidity and capital position, with customer deposits growing by 5.6 per cent YTD to reach Dh120.2 billion, and our non-interest income to operating income ratio remaining high at 30.7 per cent, showcasing our ability to create diversified income streams,” said Group CEO Ahmed Abdelaal.
“We continue to achieve stable growth in our loan portfolio, with 5.6% YoY increase in total loans and advances to reach AED 91.1 billion, while maintaining a prudent approach to risk management as reflected in our reduced impairment allowance and declining non-performing loans to gross loans ratio.”