Mashreq net profit rises 122% to AED 5.8 billion in first 9 months of 2023

Mashreq announced its financial results for the nine months of 2023, continuing its strong track record of sustainable growth and enhancing shareholder value with earnings per share of AED 28.75.

Operating income and net profit

MashrekNet profit has soared to AED 5.8 billion for the nine months of 2023, a substantial increase of 122% year-on-year. This performance is attributed to our successful growth strategy, commitment to customer excellence, strong operational performance, efficient cost management and prudent risk management capabilities.

Return on equity (ROE) hits an all-time high of 32.1% in 9M 2023, doubling compared to 9M 2022.

The increase in operating income and net income is primarily attributed to a significant 82% increase in net interest income. This growth is the result of several factors, including our balance sheet expansion, healthy customer margins and the prevailing high interest rate environment. Furthermore, our non-interest income reached AED 2.3 billion, representing a notable year-on-year growth of 8.1% in the nine months of 2023.

Operating profit increased from AED 3.2 billion to AED 5.6 billion in the nine months of 2023, representing a notable increase of 73% compared to the same period in 2022.
The impairment provision has seen a net release of AED 341 million, driven by a 69% year-on-year decline in low-risk charges, which amounted to AED 244 million.

AbdulAziz Al Ghurair, president of Mashreq, saying:

“The UAE banking sector continues to demonstrate remarkable resilience and growth, laying a solid foundation for the country’s entire financial landscape. Our recent achievement, a remarkable 122% year-on-year increase in net profits, is a testament to Mashreq’s enduring strengths and forward momentum. However, our vision extends beyond the numbers. At Mashreq, we are steadfast in leading the way towards sustainability in the region by offering customized financial solutions that catalyze the transition to a greener economy, paving the way for the UAE’s goal of achieving net zero emissions by 2050. A Through our partnership with COP28, we reiterate our dedication to combating climate change and championing a sustainable tomorrow. “It is a time for reinvention, to look to the future and ensure that as leaders in the banking sector, we not only generate profits but also champion the cause of a sustainable future for all.”

Ahmed Abdelaal, Group CEO, Mashreqsaying:

“Mashreq’s remarkable financial performance this year is a clear reflection of our relentless commitment to innovation and putting our customers first. Significant net profit growth to AED 5.8 billion in the third quarter, driven by an 82% increase in net interest income, underlines our strength and adaptability in an ever-changing financial landscape. Internationally, we continue to see the benefits of our diversified business model and strong balance sheet growth, and our digital advancements in Pakistan and our licenses in Oman usher in an exciting new era of global growth. Our digital transformation continues to gain momentum with strategic partnerships with companies like Alipay through NeoPay, enhancing our position in the digital banking revolution.

”Looking ahead, our strategy is multifaceted. Beyond the financial investment, our goal is to improve the customer experience, strengthen our security measures with cutting-edge fraud prevention, and optimize operations through automation. We are excited to expand our digital capabilities, especially by leveraging AI and fostering flagship digital platforms such as Neo and NeoBiz. Our journey has been commendable, but our vision remains broad, looking forward to the countless possibilities that the future holds.”

News source: Emirates News Agency