Dubai-based Mashreq Bank’s net profit for the second quarter of the year soared to AED 793 million ($216 million) from AED 42 million in the same period last year, driven by a sharp rise in operating profit and lower impairment allowance.

Operating profit came in at AED 1 billion in Q2 2022 compared to AED 860 million a year earlier, the lender said in a filing on the Dubai Financial Market (DFM), where its shares trade.

Impairment allowance fell to AED 213 million versus AED 785 million in Q1 last year, as the credit environment improved.

Interest income and income from Islamic financing and investment products stood at AED 1.5 billion, up from AED 1.1 billion a year ago.

For the first half of 2022, Mashreq Bank posted a net profit of AED 1.4 billion, with earnings per share at AED 6.97.

As of the end of June, customer deposits were AED 109.34 billion, up 15% year-on-year, while loans and advances were AED 89.68 billion, up 16% year-on-year.

(Reporting by Brinda Darasha; editing by Cleofe Maceda)