Saturday, 24 August 2019 06:22 GMT

UAE- Mashreq posts Dh1.2b in H1 net profit - News |

(MENAFN - Khaleej Times) Mashreq, a leading Dubai-based lender, reported on Sunday a 5.2 per cent increase in year on year first-half net profit to Dh 1.2 billion on the back of a decline in impairment allowance and better non-interest income ratio.

The bank's impairment allowance dropped by 18.2 per cent as its non-interest income to operating income ratio remained high at 39.8 per cent year on year.

The lender also reported strong liquidity and capital position with liquid assets ratio at 29.2 per cent while cash and due from banks at Dh37.1 billion, Mashreq said in a statement.

Abdul Aziz Al Ghurair, the bank's CEO, said the healthy net profit is testament to the bank's constant drive towards innovation alongside developing new strategies and products that steadily place it at the forefront of the banking industry in the region. "Our impairment allowance is down and we continue to command the best-in-class non-interest income ratio."

"Our loan-to-deposit ratio remained robust. I am confident we will maintain our strong position as long as we continue to follow our customer-centric strategy and innovate," said Al Ghurair.

He said the bank has made immense strides in improving the banking experience for customers in the first half. "An example is our branch transformation strategy, which is the first initiative of its kind in the region, and we strongly believe it will help to redefine banking in the Middle East. Additionally, our operations are more efficient than ever before, and we have focused on optimising performance without compromising on our core tenet - the customer experience."

While total assets decreased slightly by 2.5 per cent to Dh136.4 billion, loans and advances increased by 2.1 per cent during the year to reach Dh70.7 billion. Loan-to-deposit ratio remained at 91.1 per cent at the end of June 2019 as non-performing loans to gross loans ratio declined to 3.5 per cent. Total Provisions for Loans and advances reached Dh4 billion, constituting 128 per cent coverage for non-performing loans, the bank said.

Al Ghurair said Mashreq is making rapid strides in its transformation journey with digital being the fulcrum on which it had launched multiple initiatives in both retail banking and corporate banking. "We recognize that most transformations of this scale pose significant challenges, but we have managed to maintain strong financial results, thanks to the single-minded focus of our teams to deliver the best results for the bank as well as our customers."

He said the bank's capital adequacy ratio, Tier 1 capital ratio and liquidity ratios are also significantly higher than the regulatory requirement and stood at 16.2 per cent and 15 per cent, respectively.-

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.


UAE- Mashreq posts Dh1.2b in H1 net profit - News |

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