Mashreq achieves 1.4 billion dirhams of net profit during the first half
Abdulaziz Al Ghurair: “Strengthening our leadership position in the banking sector in the region, and providing an exceptional banking experience to customers.”
Yesterday, Mashreq Bank announced its financial results for the first half ending June 30, 2022.
According to the financial results, the bank achieved strong growth in operating income and net profit, as operating income increased by 15% compared to the same period in the previous year to reach AED 3.3 billion, as a result of the increase in net interest income and income from Islamic financing.
Operating profits amounted to 1.9 billion dirhams, an increase of 17% compared to the first half of 2021, as a result of the increase in operating income, and net profits in the first half of 2022 increased to 1.4 billion dirhams.
Mashreq confirmed that it has sufficient liquidity and a strong financial position, as customer deposits increased by 8% since the beginning of this year to date, to reach 109.3 billion dirhams, while the proportion of liquid assets reached 27.6% in June 2022 (29.0% in December 2021).
The bank indicated a healthy growth of the loan portfolio, as loans and advances witnessed a growth of 10% since the beginning of the year to date, reaching 89.7 billion dirhams, and the ratio of loans to deposits maintained its stability at 82% at the end of June 2022.
In turn, provisions for non-performing loans decreased from 1.5 billion dirhams in the first half of 2021 to 466 million dirhams in the first half of this year, and the ratio of non-performing loans to total loans decreased to 4.6% at the end of June 2022, compared to 5.2% at the end of December 2021. The total provisions for loans and advances amounted to 6.6 billion dirhams, and the loan coverage ratio was improved to reach 132.1% on June 30, 2022, compared to 128.2% in December 2021.
The Chairman of the Board of Directors of "Mashreq", Abdulaziz Al-Ghurair, indicated that "Mashreq" achieved good growth in net profits during the first half of 2022.
He said: "In light of the current market conditions, achieving an increase in net profits of 1.4 billion dirhams is a significant achievement and a source of pride for all the bank's employees and partners."
He continued: “We are constantly working to strengthen our leadership position in the banking sector in the region, as we seek to contribute to shaping the future of financial services by enhancing levels of innovation and trust, while at the same time providing an exceptional banking experience to our customers that is characterized by smoothness.
We will continue to move forward to achieve this vision during the remainder of 2022, by developing new strategies and products, and forging important partnerships with the aim of contributing to strengthening the digital economy and continuing to lead the banking sector in the region.”
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