UAE Business: Mashreq posts $165m net profit for Q1 – Gulf Digital News

UAE Business: Mashreq posts $165m net profit for Q1 – Gulf Digital News

Mashreq, one of the leading financial institutions in the UAE, today reported a robust growth in operating income and net profit for the quarter ending March 31.

The bank's net profit increased to AED606 million ($165 million) in Q1 2022 compared to AED43 million in Q1 2021. This was mainly as a result of a decrease in impairment allowance by 64.5% Y-o-Y, the bank said.

Operating income increased by 11% over the previous year to AED1.6 billion due to increased net interest income and income from Islamic financing, coupled with improvements in fees and commission. Operating profit at AED894 million is a 13.3% increase compared to Q1 2021 as a result of higher operating income.

Mashreq’s non-interest income to operating income ratio continues to remain high at 47% (47.6% as of December 2021), the bank said.

The bank enjoys comfortable liquidity and capital position, it said

Other highlights of the results are:

* Growth of 2.7% YTD in customer deposits to reach AED104.2 billion

* Liquid assets ratio stood at 29% with cash and due from banks at AED48.9 billion as on March 31, 2022

* Capital adequacy ratio stood at 14%

* Healthy growth in the loan portfolio

* Total assets increased by 3.1% YTD to AED182.6 billion and