(MENAFN- Khaleej Times) Mashreq, a leading Dubai-based bank, reported on Monday a net profit growth of 9.5 per cent year-on-year to Dh598 million in the first quarter of 2018 "primarily due to an increase in operating income."
The bank said earnings per share are strong at Dh3.37 as of March 2018 while net interest income and net income from Islamic products rose by 6.7 per cent in the quarter year-on-year, on the back of a 3.9 per cent loan growth in the first quarter.
Mashreq's CEO, Abdul Aziz Al Ghurair, said as the economic climate in the UAE continued to improve on the back of stabilising oil prices, the bank's net profit increased by 9.5 per cent. "Our earnings per share remain robust and we continue to maintain a strong liquidity position, as evidenced by our healthy loan-to-deposit ratio of 85 per cent."
He said the bank is committed to maintaining its leadership position in digital banking across the region. "With over 85 per cent of our transactions happening through digital channels already today, we are committed to developing new and innovative products to cater to the ever-evolving requirements of our customers. We will continue to pioneer financial solutions targeted at making the banking experience exceptional to our customers."
"Our solid financial performance puts us at the forefront of the banking industry not only locally, but also regionally, and I am confident we will be able capitalise on upcoming opportunities and maintain our momentum for the remainder of 2018," Al Ghurair said.
Total assets of the bank decreased by 1.4 per cent to reach Dh123.4 billion while customer deposits increased slightly by 0.6 per cent in the first quarter to reach Dh76.5 billion, primarily due to a 13.2 per cent increase in Islamic deposits as loan-to-deposit ratio remained healthy at 85.2 per cent at the end of March 2018.
The bank's liquid assets to total assets stood at 26.5 per cent with cash and due from Banks at Dh32.7 billion. Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 17.1 per cent and 16.1 per cent, respectively.
Loans and advances grew by 3.9 per cent to Dh65.2 billion driven by a 4.8 per cent growth in conventional finance. Loan-to-total assets ratio at 52.8 per cent increased as compared to 50.1 per cent at the end of 2017.
Non-performing loans increased marginally by Dh149 million in the quarter leading to a non-performing loans to gross loans ratio of 2.9 per cent.
The bank said net allowances for impairment for first quarter were Dh302 million as compared to Dh571 million in last quarter 2017. Total provisions for loans and advances reached Dh4.2 billion, constituting 192.7 per cent coverage for non-performing loans. -
Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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