Mashreq’s 2022 net profit climbs to $1bln as customer deposits rise

UAE - Mashreq, a leading Dubai-based lender, on Monday reported a remarkable jump in 2022 net profit to Dh3.7 billion as operating profit surged 39. per cent to Dh4.4 billion year-on-year. The bank reported a 12.1 per cent increase in customer deposits to Dh 113.8 billion as its liquid assets ratio stood at 33.2 per cent as of December 2022 compared to 29 per cent in December 2021 when the lender swung to a Dh1 billion net profit. The loan-to-deposit ratio remained stable and was at 79.4 per cent at the end of December 2022 (80.3 per cent in December 2021) The bank said in a statement that its non-interest income to operating income ratio continues to remain one of the industry’s best at 39 per cent. Mashreq’s capital adequacy ratio stood at 16 per cent (post-recommended dividend) and Tier 1 Capital ratio at 13.7 per cent as of December 2022. Abdulaziz Al Ghurair, Chairman of Mashreq, said the remarkable performance of the bank is a testament to the commitment and dedication of the entire Mashreq team. “Double-digit growth was recorded across each and every business unit in 2022. These outcomes were delivered at the same time as a new brand identity, ‘Rise Every Day’, which comes from Mashreq’s strong belief in helping our clients to succeed and to fulfil their aspirations, supporting our people to realize their ambitions and to facilitate building better lives and livelihoods in the society through hard work and innovation while delivering the best-in-class banking experience,” said Al Ghurair. “After such a transformative year, Mashreq can look forward with great confidence to shaping the future of finance through innovation, convenience, trust, and an unmatched customer experience through our products and services,” said Al Ghurair. Ahmed Abdelaal, group chief executive officer of Mashreq, said the solid growth in all business activities for the year 2022 is a testament to the hard work of the bank’s team as it continues to solidify its status in the market as a power digital disruptor and challenger bank. “Our operating income increased by 29.1 per cent over the previous year to reach Dh7.5 billion in 2022. Operating profits soared by 39.2 per cent year-on-year and despite the impact of the high growth in net interest income, the bank’s non-interest income to operating income ratio remains one of the industry’s best at 39 per cent,” said Abdelaal. “These positive results created a comfortable liquidity and capital position, defined by a 12.1 per cent increase in customer deposits, which reached Dh113.8 billion by the close of the year. The bank also delivered healthy growth in its loan portfolio, which grew by 11 per cent by the year end to stand at Dh90.3 billion,” the bank’s CEO said. In 2022, retail banking operations (RBG) continued to be the backbone of Mashreq’s business and revenues grew by 42 per cent YoY. “Not to mention that our flagship digital solutions such as Neo and personal banking net profit grew by 43 per cent, while NeoBiz and Neopay have grown in net profit by 289 per cent and 37 per cent respectively. Similarly, the corporate and investment banking group (CIBG) revenues grew strongly, with a 37 per cent YoY growth. The international banking group (IBG) remained focused on executing its strategic priorities and continued to strengthen the presence across its existing international markets with a YoY growth for IBG assets at 43 per cent and revenues at 25 per cent,” said Abdelaal. Copyright © 2022 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Mashreq’s 2022 net profit climbs to $1bln as customer deposits rise

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