Saturday 24 August 2019
 
»
 
»
Story

Abdul Aziz Al Ghurair

Mashreq H1 net profit up 5.2pc to $326m

DUBAI, July 22, 2019

Mashreq, one of the leading financial institutions in the UAE, has posted net profits of Dh1.2 billion ($326.6 million) for the first half (H1) of the year, marking a 5.2 per cent increase year-on-year (YoY).

Abdul Aziz Al Ghurair, Mashreq's CEO said: “I am delighted to announce that Mashreq Bank has yet again posted a healthy net profit at the close of 1H of 2019, and we have registered a year on year increase of 5.2 per cent in net profits. Our impairment allowance is down and we continue to command the best-in-class non-interest income ratio. This is testament to our teams’ constant drive towards innovation alongside developing new strategies and products that steadily place us at the forefront of the banking industry in the region.”

“Our Loan-to-Deposit ratio remained robust as of the end of Q2 of 2019. I am confident we will maintain our strong position as long as we continue to follow our customer-centric strategy and innovate. We have made immense strides in improving the banking experience for our 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 optimizing performance without compromising on our core tenet – the customer experience,” he added.

“We are making rapid strides in our transformation journey with digital being the fulcrum on which we have 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. Our capital adequacy ratio, Tier 1 capital ratio and liquidity ratios are also significantly higher than the regulatory requirement,” Al Ghurair said.

“The banking landscape in the region is changing at a rapid pace where having a sound digital infrastructure is a pre-requisite for any bank to succeed. Mashreq has been at the forefront of embracing technology and will continue to introduce innovative services and products to meet the ever evolving customer needs,” he concluded.

Key highlights [H1 2019 vs H1 2018]:

•    Impairment Allowance down by 18.2 per cent YoY

•    High proportion of non-interest income

Mashreq’s best-in-class non-interest income to operating income ratio remained high at 39.8 per cent

•    Strong liquidity & Capital position

Liquid Assets ratio stood at 29.2 per cent with Cash and Due from Banks at Dh37.1 billion as on 30th June 2019

Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.2 per cent and 15.0 per cent respectively

•    Steady Loan Growth

Though total assets decreased slightly by2.5 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 robust at 91.1 per cent at the end of June 2019

•    Sustained Asset Quality

Non-Performing Loans to Gross Loans ratio declined slightly to 3.5 per cent at the end of June 2019

Total Provisions for Loans and advances reached Dh4.0 billion, constituting 128.0 per cent coverage for Non-Performing Loans - TradeArabia News Service

 




Tags:

More Finance & Capital Market Stories

calendarCalendar of Events

Ads