Mashreq reports net profit of AED 1.6 bn with a 96% increase in operating profits for Q1 2023

Mashreq reports net profit of AED 1.6 bn with a 96% increase in operating profits for Q1 2023

DUBAI, 27th April, 2023 (WAM) – Mashreq, a leading financial institution, has released its financial results for Q1 2023, showcasing a robust performance that has propelled the bank to cross the AED 200 billion in total assets milestone. The bank's operating profit increased by an impressive 96% to AED1.8 billion ($490.2 million) compared to the same period in 2022, due to healthy operating income growth in the UAE and other countries. Furthermore, the bank has shown improved efficiency, with its cost to income ratio declining to 30.2% in Q1 2023 from 40.3% in Q1 2022.

Mashreq's non-interest income to operating income ratio continues to remain one of the industry's best at 30.7%, while credit costs have decreased by 58% year-on-year. This, coupled with solid operating income growth, has enabled the bank to post a strong net profit of AED1.6 billion.

Moreover, Mashreq's total loans and advances increased by 5.6% year-on-year to reach AED91.1 billion, with the loan-to-deposit ratio standing at 75.8% at the end of March 2023 (79.4% in December 2022). The non-performing loans to gross loans ratio also declined to 1.9% as of the end of March 2023 (compared to 2.2% in December 2022).

In terms of customer deposits, the bank saw