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Dubai-based Mashreq Bank’s Q1 2022 net profit soared to 606 million dirhams ($165 million) compared to 43 million dirhams in Q1-2021, driven by a sharp drop in impairments.
The earnings easily topped Refinitiv’s mean analyst estimate of 351 million dirhams.
Impairment allowance fell to 252 million dirhams from 711 million dirhams in 1Q 2021, the Dubai Financial Market-listed lender said in a statement on Wednesday.
Operating income increased 11 percent y-o-y to 1.6 billion dirhams due to higher net interest income and income from Islamic financing.
Operating profit came in at 894 million dirhams, up 13 percent compared to 1Q 2021 as operating income rose.
Loans and advances increased 6 percent YTD to 86.3 billion dirhams and loan-to-deposit ratio remained stable at nearly 83 percent at the end of March 2022.
(Reporting by Brinda Darasha; editing by Seban Scaria)
