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Mashreq’s Q2 2023 net profit rises 140% to $520m

Mashreq's net profit for the first half of 2023 increased by 150 percent Wam
Mashreq's net profit for the first half of 2023 increased by 150 percent

Mashreq reported a net profit of AED1.91 billion ($520.03 million) in the second quarter of 2023, a year-on-year increase of 140 percent, as operating income rose by 60 percent across all business units.

Total operating income reached AED2.61 billion in the first six months of 2023 from AED1.695 billion a year earlier.

Net profit for the first half of 2023 increased 150 percent to AED3.52 billion from AED1.41 billion in the same period last year.

“We believe our growth trajectory is characterised by the symbiosis of strong revenue growth and bottom-line expansion,” said AbdulAziz Al Ghurair, chairman of Mashreq.

He stated that the bank offered an annualised return on equity exceeding 30 percent, which reflects the resiliency of the UAE banking system and its fortified capital buffer.

Total loans and advances increased by 5.2 percent year to date to AED95 billion.

Customer deposits grew 11.4 percent year to date to AED126.8 billion, while the Casa ratio remained high at 65 percent. 

The loan-to-deposit ratio stood at 74.9 percent at the end of June 2023, compared to 79.4 percent in December 2022.

Mashreq’s liquid assets ratio reached 30.8 percent as of June 2023 compared to 33.5 percent in December 2022.

Impairment allowance reduced significantly to AED54 million in the first half of 2023 due to enhanced asset quality and higher recoveries, representing only 0.1 percent of net loans.

The non-performing loans-to-gross loans ratio declined to 1.7 percent as of the end of June 2023 from 2.2 percent as of December 2022 – reaching the lowest in the market.

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FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

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