Mashreq’s net profit surges to Dhs5.8 billion

Mashreq announced its financial results for first nine months of 2023 continuing its strong sustainable growth trajectory and enhancing shareholder value with an Earnings per Share of Dhs28.75.

Operating Income & Net Profit Mashreq’s net profit has soared to Dhs5.8 billion for 9M 2023, a substantial increase of 122% year-on-year.

This performance is attributed to our successful growth strategy, commitment to customer excellence, strong operating performance, efficient cost management, and prudent risk management capabilities. Return on Equity (ROE) at record-high of 32.1% in 9M 2023, doubling compared to 9M 2022The increase in operating income and net profit is primarily attributed to a significant 82% increase in net interest income.

This growth is a result of several factors, including the expansion of our balance sheet, healthy client margins, and the prevailing high-interest rate environment.

Additionally, our non-interest income has reached Dhs2.3 billion, marking a notable 8.1% year-on-year growth in 9M 2023. Operating profit has surged from Dhs3.2 billion to Dhs5.6 billion in 9M 2023, representing a remarkable 73% increase compared to the same period in 2022. The allowance for impairments has experienced a net release of Dhs341 million, driven by a decrease of 69% year-on-year in low-risk charges, amounting to Dhs 244 million.

AbdulAziz Al Ghurair, Chairman of Mashreq, said: “The UAE banking sector continues to demonstrate remarkable resilience and growth, laying a strong foundation for the entire financial landscape of the country. Our recent achievement, a remarkable 122% year-on-year surge in net profits, stands as a testament to Mashreq’s enduring strengths and forward momentum. However, our vision extends beyond numbers. At Mashreq, we are firm in spearheading the region’s sustainability journey by offering tailored financial solutions that catalyse the transition to a greener economy, paving the way for the UAE’s goal of Net Zero by 2050. Through our association with COP28, we reiterate our dedication to combating climate change and championing a sustainable tomorrow. It is a time of reinvention, of looking ahead, and ensuring that as leaders in the banking industry, we not only drive profits but also champion the cause of a sustainable future for all.”