UAE Business: Mashreq posts $380m net and 17pc rise in Op. profit in H1 – Gulf Digital News

UAE Business: Mashreq posts $380m net and 17pc rise in Op. profit in H1 – Gulf Digital News

Mashreq, one of the leading financial institutions in the UAE, has posted a healthy net profit of AED1.4 billion ($380 million) and 17% rise in operating profit at AED1.9 billion in the first half (H1) of 2022.

Operating Income has increased by 15% over the previous year to AED3.3 billion mainly due to increased net interest income and income from Islamic financing.

Mashreq’s non-interest income to operating income ratio continues to remain high at 44.2% (47.5% as of December 2021). While maintaining comfortable liquidity and capital position, the bank registered a growth of 8% YTD in customer deposits to reach AED109.3 billion.

Liquid assets ratio stood at 27.6% for June 2022 (29.0% in December 2021) and capital adequacy ratio is at 13.6%) and Tier 1 Capital ratio is at 12.4% as of June 2022.

Loan portfolio

The bank saw a healthy growth in the loan portfolio. Total loans and advances increased by 10% YTD to AED89.7 billion. The loan-to-deposit ratio remained stable at 82% at the end of June 2022. As a result of an improved credit environment, impairment allowance reduced to AED466 million from AED1.5 billion. Non-performing loans to gross loans ratio declined to 4.6% as of end of June 2022 (5.2% as of