Mashreq delivers strong performance with 150% Surge in Net Profit to AED 3.5 Bn for 1H 2023

Dubai, UAE; 26^th July 2023: Mashreq announces the financial results for 1H 2023 displaying a strong performance and providing excellent shareholder value with an annualised return on equity of over 30%. Further details are outlined below.

1. Robust Growth in Operating Income & Net Profit

·        Operating profit at AED 3.7 billion represents an 88% increase compared to 1H 2022 on the back of a healthy operating income growth of 60% – strong growth across all business units

·        Operating income growth was primarily driven by net interest income which has increased significantly by 96.3% as a result of growth in the loan portfolio and the high interest rate environment; the non-interest income to total income ratio currently stands at 29.5%

·        Positive jaws of 43.2% has led to a significant improvement in efficiency with the cost to income ratio at 28.3% in 1H 2023 compared to 38.7% in 1H 2022

·        Credit cost decreased by 88% year on year to AED 54 million in 1H 2023. This, coupled with the solid operating income growth, allowed Mashreq to post a strong net profit of AED 3.5 billion in 1H 2023, representing 150% year on year growth

·        Noteworthy increase in annualised return on equity to 30.2% (up from 13.9% in 1H 2022) demonstrating excellent shareholder value

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