Khaleej Times, Tuesday, Jan 31, 2023 | Rajab 8, 1444
Mashreq’s 2022 net profit climbs to Dh3.7 billion as customer deposits rise
Mashreq, a leading Dubai-based lender, on Monday reported a remarkable jump in
2022 net profit to Dh3.7 billion as operating profit surged 39. per cent to
Dh4.4 billion year-on-year.
The bank reported a 12.1 per cent increase in customer deposits to Dh 113.8
billion as its liquid assets ratio stood at 33.2 per cent as of December 2022
compared to 29 per cent in December 2021 when the lender swung to a Dh1 billion
net profit. The loan-to-deposit ratio remained stable and was at 79.4 per cent
at the end of December 2022 (80.3 per cent in December 2021)
The bank said in a statement that its non-interest income to operating income
ratio continues to remain one of the industry’s best at 39 per cent. Mashreq’s
capital adequacy ratio stood at 16 per cent (post-recommended dividend) and Tier
1 Capital ratio at 13.7 per cent as of December 2022.
Abdulaziz Al Ghurair, Chairman of Mashreq, said the remarkable performance of
the bank is a testament to the commitment and dedication of the entire Mashreq
“Double-digit growth was recorded across each and every business unit in 2022.
These outcomes were delivered at the same time as a new brand identity, ‘Rise
Every Day’, which comes from Mashreq’s strong belief in helping our clients to
succeed and to fulfil their aspirations, supporting our people to realize their
ambitions and to facilitate building better lives and livelihoods in the society
through hard work and innovation while delivering the best-in-class banking
experience,” said Al Ghurair.
“After such a transformative year, Mashreq can look forward with great
confidence to shaping the future of finance through innovation, convenience,
trust, and an unmatched customer experience through our products and services,”
said Al Ghurair.
Ahmed Abdelaal, group chief executive officer of Mashreq, said the solid growth
in all business activities for the year 2022 is a testament to the hard work of
the bank’s team as it continues to solidify its status in the market as a power
digital disruptor and challenger bank.
“Our operating income increased by 29.1 per cent over the previous year to reach
Dh7.5 billion in 2022. Operating profits soared by 39.2 per cent year-on-year
and despite the impact of the high growth in net interest income, the bank’s
non-interest income to operating income ratio remains one of the industry’s best
at 39 per cent,” said Abdelaal.
“These positive results created a comfortable liquidity and capital position,
defined by a 12.1 per cent increase in customer deposits, which reached Dh113.8
billion by the close of the year. The bank also delivered healthy growth in its
loan portfolio, which grew by 11 per cent by the year end to stand at Dh90.3
billion,” the bank’s CEO said.
In 2022, retail banking operations (RBG) continued to be the backbone of
Mashreq’s business and revenues grew by 42 per cent YoY. “Not to mention that
our flagship digital solutions such as Neo and personal banking net profit grew
by 43 per cent, while NeoBiz and Neopay have grown in net profit by 289 per cent
and 37 per cent respectively.
Similarly, the corporate and investment banking group (CIBG) revenues grew
strongly, with a 37 per cent YoY growth. The international banking group (IBG)
remained focused on executing its strategic priorities and continued to
strengthen the presence across its existing international markets with a YoY
growth for IBG assets at 43 per cent and revenues at 25 per cent,” said