- Mashreq posts a 3% increase in Net Profit for first quarter 2017
Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the first quarter ending 31st March 2017
Mashreq’s CEO, Abdul Aziz Al Ghurair commented, “Given the challenging business environment in 2016, Mashreq’s cautious stance has allowed us to stay focused on building quality assets whilst upholding a strong liquidity position, as evidenced by the bank’s healthy loan-to-deposit ratio of 80%.”
He added, “The stabilization in the business environment coupled with our sharp focus on asset quality has led to lower provisions for impairment, down 27% from the previous quarter. We are well poised to take advantage of market opportunities, and will see better upside in profits if the operating environment remains stable.
Al Ghurair concluded, “As we celebrate our 50th year, we are thankful for the decades of support we have enjoyed from our clients and partners. We remain committed to these long term relationships as we look forward to 50 more years.”
- Stable growth in Net Profit
- Net profit increased by 2.7% year-on-year to AED 546 million primarily due to a 15% decrease in impairment allowance
- Net Interest Income & Net Income from Islamic Products down by 3.6% year-on-year, on the back of flat loan growth
- Consistently high proportion of net fee and commission income
- Mashreq’s best-in-class non-interest income to operating income ratio remained high at 41.6%
- Investment income, FX & Other income increased by 17.9% YoY
- Healthy balance sheet composition
- Total Assets decreased by 1.7% in the year to reach AED 120.7 billion; Customer Deposits declined slightly by 0.8% to reach AED 76.4 billion
- Loan-to-Deposit ratio remained healthy at 80.5% at the end of March 2017
- Strong liquidity and capital position
- Liquid Assets to Total Assets stood at 28.1% with Cash and Due from Banks at AED 33.9 billion
- Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 17.1% and 16.2% respectively
- Maintained asset quality
- Non-Performing Loans to Gross Loans ratio remained relatively steady at 3.3% at the end of March 2017.
- The risk charge for the quarter decreased from AED 425 million in 4Q 2016 to AED 311 million and Total Provisions for Loans and advances reached AED 3.5 billion, constituting 145.5% coverage for Non-Performing Loans
Mashreq delivered stable financial results for the quarter ending March 2017, reporting a net profit of AED 546 million. Earnings per share are strong at AED 3.08 as of March 2017.