Mashreq 2015 net profit flattens in tough market conditions

UAE lender Mashreq reported an almost flat profit for 2015 after posting a 33 per cent rise the previous year.

The bank’s 2015 net profit stood at Dhs 2.402bn up from Dhs 2.401bn in 2014.

Its total assets climbed 8.8 per cent for the year, reaching Dhs 115.2bn, and it saw customer deposits increase 7.5 per cent to Dhs 73.6bn.

Mashreq’s operating income also climbed 2.3 per cent year-on-year to Dhs 6bn, driven by a 7.3 per cent rise in net interest income and a 9 per cent increase in average loan volume.

“The bank has maintained a steady performance in the difficult market conditions, proving once again that being prepared is half the battle won. As many others in the industry, we read the signs of the market softening early and took decisions to moderate our growth strategy accordingly,” said Mashreq CEO Abdul Aziz Al Ghurair.

He described the bank’s performance as “remarkable” considering rapidly deteriorating market sentiment in the last two quarters of the year influenced by the tumbling oil price.

The company delivered earnings per share of Dhs 13.5.