Our friends at Mashreq reported a 130% y-o-y rise in 2023 net income yo-y to AED 8.6 bn, according to the bank’s earnings report (pdf). Management attributed the growth to a 69% y-o-y rise in net interest income to AED 7.7 bn, as well as cost reduction and solid client margins, the bank said. A high interest rate environment and favorable one-off effects linked to loan loss provisioning backed the growth, the bank said. The bank’s non-interest income was up 13% y-o-y to AED 3.1 bn.

The bank’s total assets grew 21.7% y-o-y to AED 240 bn, as it ramped up loans and advances 25% y-o-y to a cumulative AED 149.5 bn, according to the report. Customer deposits rose 29% y-o-y to 146.2 bn.

What they said: “Our franchise continues to yield outstanding results, bolstered by the addition of a substantial number of new clients and the deepening of existing relationships across the bank,” Mashreq Chairman Abul Aziz Ghurair said.

Looking ahead: “Our course and position remain resolute, even in the face of ongoing uncertainty,” Group CEO Ahmed Abdelaal said. “We possess a stable, robust, and resilient business model, characterized by high quality earnings and a well-diversified loan portfolio spanning various markets.”

Operational adjustments could be necessary as interest rates normalize: “It is imperative, however, that we brace ourselves for the normalization of interest rates, which will necessitate adjustments in operational strategies to align with this new reality,” he added.

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