Home » Mashreq’s net profit surges 122% to AED 5.8 billion in the first 9 months of 2023

Mashreq’s net profit surges 122% to AED 5.8 billion in the first 9 months of 2023

by Dubaiforum

DUBAI, 26th October, 2023 (WAM) – Mashreq announced its financial results for 9M 2023 continuing its strong sustainable growth trajectory and enhancing shareholder value with an Earnings per Share of AED 28.75.

Operating Income & Net Profit

Mashreq’s net profit has soared to AED 5.8 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 2022
The 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 AED 2.3 billion, marking a notable 8.1% year-on-year growth in 9M 2023.
Operating profit has surged from AED 3.2 billion to AED 5.6 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 AED 341 million, driven by a decrease of 69% year-on-year in low-risk charges, amounting to AED 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.”

Ahmed Abdelaal, Group Chief Executive Officer, Mashreq, said:“Mashreq’s remarkable financial performance this year is a clear reflection of our relentless commitment to innovation and putting our customers first. The significant growth in net profit to AED 5.8 billion in the third quarter, spurred by an 82% increase in net interest income, underlines our strength and adaptability in an ever-changing financial landscape. Internationally, we continued to see the benefits of our diversified business model and strong balance sheet growth and our digital strides in Pakistan and licensing in Oman usher in a new era of exciting global growth. Our digital transformation continues to gain momentum with strategic partnerships with the likes of Alipay through NeoPay, enhancing our position in the digital banking revolution.

”Looking ahead, our strategy is multifaceted. Beyond financial investment, we aim to elevate the customer experience, fortify our security measures with cutting-edge fraud prevention, and optimize operations through automation. We are enthusiastic about amplifying our digital capabilities, especially by harnessing AI and nurturing flagship digital platforms like Neo and NeoBiz. Our journey has been commendable, but our vision remains expansive, awaiting the countless possibilities the future holds.”

You may also like

Leave a Comment

About Dubai Forum

Dubai Forum: your daily source for the latest news from Dubai, the United Arab Emirates, and the broader Middle East region. Our coverage includes updates on people, lifestyle, communities, business, startups, and finance, keeping you informed on all facets of the dynamic Dubai scene. #Dubaicommunities #people #travel #startups #DubaiForum