Mashreq profit up 34pc to $353m
Dubai, October 30, 2013
Mashreq, one of the UAE’s leading financial institutions, has reported net profit of Dh1.3 billion ($353 million) for the first nine months of 2013, a 34 per cent increase compared to Dh970 million during the same period last year.
The bank's total operating income for the period grew to Dh3.5 billion, an increase of 19.2 per cent compared to a year earlier, driven by both net interest income and net fee and commission income.
The bank's net interest income at the end of September 2013 was up by 18.6pc compared to a year earlier, driven by 17.7pc year-on-year increase in loan volume and 40 bps improvement in net interest margin from 2.51pc in September 2012 to 2.91pc this year, which was predominantly led by change in balance sheet structure and composition of loans, said a statement.
Mashreq’s best-in-class net fee, commission and other income to operating income ratio remained high at 52.3pc led by a 22.8pc growth in net fee and commission income and 36pc growth in other income, it said.
General and administrative expenses for the period increased by 10.6pc compared to a year earlier to reach Dh1.5 billion. However Mashreq's efficiency ratio improved by 3.3pc on a year-on-year basis to reach 43pc at the end of September 2013.
Earnings per share strengthened to Dh7.70 at the end of September this year compared to Dh5.74 a year earlier.
Mashreq's CEO AbdulAziz Al Ghurair said: “The results of the nine months are gratifying for more reasons than one. The strong underlying growth in our lending and deposits, the success of new product lines in delivering new revenues – like insurance and investment in our Retail Division , the extremely robust growth in the current account deposits in our Corporate Banking Division have all contributed handsomely to this year on year growth in revenues and the bottom line.
“While the pace of economic growth in the UAE picks up, adding further momentum to our business, it is the collective effort of our people – led by a highly engaged management team – that has produced this performance,” he said.
Mashreq’s total assets increased by 8.7pc to reach Dh83.0 billion, compared to Dh76.4 billion at the end of 2012. Liquid assets to total assets stood at 23pc with cash and due from banks at Dh19.1 billion at the end of the third quarter.
Loans and advances grew by 17.7pc during the first nine months to reach Dh48.7 billion, compared to Dh41.4 billion at the end of December 2012. Customer Deposits increased by 11.7pc during the same period to stand at Dh53.0 billion at the end of September 2013. – TradeArabia News Service