Mashreq, Dubai's third-biggest lender, reported a 139.4 per cent surge in its second-quarter profit on the back of lower impairments and higher interest income.
Net profit attributable to owners of the parent for the three months to the end of June climbed to more than Dh1.9 billion ($517 million), the lender said on Wednesday in a filing to the Dubai Financial Market, where its shares are traded.
Impairment allowances for the period declined 120 per cent to Dh43 million, while net interest income and income from Islamic financing jumped 84.4 per cent annually to Dh1.8 billion.
“This robust performance stands as a tribute to the resiliency and vigour of the UAE banking system and its fortified capital buffers,” Mashreq chairman AbdulAziz Al Ghurair said. "These foundational strengths have enabled us to successfully navigate the complexities of the digital banking landscape and adapt our strategies seamlessly."
The bank’s six-month profit increased nearly 150 per cent to Dh3.5 billion as impairment allowances decreased 88 per cent to Dh54 million and net interest income and income from Islamic financing surged 96 per cent to Dh3.6 billion. Operating expenses rose 17 per cent to Dh1.45 billion.
Loans and advances for the six-month period grew 5.2 per cent year on year to Dh95 billion. Customer deposits, meanwhile, increased 16 per cent annually to Dh126.7 billion. Total assets grew 11.8 per cent to Dh211 billion.
“Our prudent risk management strategy, which prioritises improving asset quality, has been … a critical factor in our success,” said Ahmed Abdelaal, group chief executive. “It has led to considerable improvement in our risk position, significantly bolstering our profitability.”
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 the central bank’s stress-testing exercise.
The banks also benefited from the UAE’s robust economic momentum last year, as aggregate credit growth rebounded and profitability jumped, the UAE Central Bank said in its Financial Stability Report 2022 this month.
The UAE’s gross domestic product grew by 7.9 per cent in 2022 to reach Dh1.62 trillion at constant prices, supported by its non-oil sector as the country continues with its economic diversification strategy, according to preliminary estimates from the Federal Competitiveness and Statistics Centre.
Company%C2%A0profile
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
Profile
Company name: Marefa Digital
Based: Dubai Multi Commodities Centre
Number of employees: seven
Sector: e-learning
Funding stage: Pre-seed funding of Dh1.5m in 2017 and an initial seed round of Dh2m in 2019
Investors: Friends and family
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
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- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
More on animal trafficking
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
COMPANY%20PROFILE
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COMPANY%20PROFILE
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Killing of Qassem Suleimani
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