Mashreq Posts 34% Profit Rise

Mashreq has posted a 34 per cent profit rise for the first nine months of the year compared to 2012.

Dubai’s biggest private bank reported profit of Dhs1.3 billion for the first three quarters compared to Dhs970 million in the same period last year.

The increase was expected after a first-half year-on-year profit jump of 40.1 per cent.

The bank’s total operating income for the period grew by 19.2 per cent to Dhs3.5 billion while its net interest income at the end of September was up 18.6 per cent on the year before period.

“The results of the nine months are gratifying for more reasons than one,” said H.E. AbdulAziz Al Ghurair, Mashreq CEO.

“The strong underlying growth in our lending and deposits, the success of new product lines in delivering new revenues and 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.”

Earnings per share at the bank strengthened to Dhs7.70 at the end of September this year compared to Dhs5.74 a year earlier.

Asset quality continued to improve as Non Performing Loans to Gross Loans ratio reduced from 9.4 per cent in December 2012 to 6.4 per cent at the end of September 2013.

Mashreq’s capital adequacy ratio and tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 18.2 per cent and 16.4 per cent respectively, at the end of September 2013.