Dubai, UAE – Mashreq, a leading UAE-based bank, has reported a massive surge in net profit for the first nine months of 2023, reaching a total of AED 5.8 billion ($1.58 billion), a year-on-year increase of 122%.
The Return on Equity (ROE) also achieved a record high, reaching 32.1% during the same period, doubling compared to the performance in the first nine months of 2022.
The boost in operating income and net profit is primarily attributed to an 82% increase in net interest income. The growth is the result of various factors, including the expansion of Mashreq’s balance sheet, healthy client margins, and the prevailing high-interest rate environment.
The bank’s non-interest income reached AED 2.3 billion ($626 million), marking an 8.1% year-on-year growth in the first three quarters of 2023.
The operating profit also saw substantial growth, rising from AED 3.2 billion to AED 5.6 billion ($871 million to $1.52 billion) in the same period in 2022 to 2023, a 73% increase.
The bank reported a net release of AED 341 million ($93 million) in allowances for impairments, driven by a significant decrease of 69% year-on-year in low-risk charges, amounting to AED 244 million ($66 million).
