Mashreq, Dubai's third-biggest lender, reported an 89.3 per cent annual jump in its third-quarter net profit on the back of higher net interest income.
Net profit for the three months to the end of September climbed to Dh2.25 billion ($612 million), the lender said in a statement on Thursday to the Dubai Financial Market, where its shares are traded.
Net interest income and income from Islamic financing during the period rose more than 60 per cent year-on-year to Dh2 billion. Fee and commission income also jumped, boosting the profit of the bank for the quarter.
“The UAE banking sector continues to demonstrate remarkable resilience and growth laying a strong foundation for the entire financial landscape of the country,” Mashreq chairman Abdul Aziz Al Ghurair said.
The growth in net profit “stands as a testament to Mashreq’s enduring strengths and forward momentum”, he said.
The banking sector in the UAE is well capitalised with adequate liquidity buffers and remained resilient last year against the risk of stagflation and market uncertainties in stress-testing exercises, the UAE Central Bank said.
The banks also benefitted from the UAE’s robust economic momentum last year, as aggregate credit growth rebounded and profitability jumped, the banking regulator said in its Financial Stability Report 2022 in July.
Mashreq’s nine-month net profit climbed 122 per cent year-on-year to Dh5.8 billion as net interest income and income from Islamic financing rose 82 per cent to more than Dh5.6 billion, it said.
Fee and commission income grew about 15 per cent to Dh1.2 billion. Operating expenses climbed 17 per cent to Dh2.3 billion.
Customer deposits during the nine-month period surged 21.4 per cent annually to Dh132.8 billion, while loans and advances grew 8.7 per cent to Dh99.2 billion. The total assets of the bank increased 16.4 per cent to Dh218.3 billion.
“Our vision remains expansive, awaiting the countless possibilities the future holds,” said Ahmed Abdelaal, Mashreq's group chief executive.