Business | Banking
Mashreq reports net profit of Dh820m for 2011
The bank continues to maintain high liquidity
- By Babu Das Augustine, Deputy Business Editor
- Published: 00:30 February 2, 2012
Dubai: Mashreq on Wednesday reported a net profit of Dh 820 million for the year 2011 compared to Dh803 million in 2010.
Mashreq’s total assets witnessed a moderate decline of 6.6 per cent , reaching Dh79.2 billion compared to Dh84.8 billion at the end of 2010, due to the bank’s balance sheet management strategy. The bank continued to maintain high liquidity. The liquid assets of Dh24.9 billion led to a healthy liquid to total asset ratio of 31 per cent as of December 31st, 2011.
In addition to specific provisions, Mashreq maintains a healthy general provision (collective impairment allowance) which at year end stood at 2 per cent of net loans and advances. Loans & Advances reported declined 8.5 per cent to Dh37.7 billion from Dh41.2 billion at the end of 2010.
“The 2011 annual financial results reflect our policy of balancing prudence with profitability. Although 2011 was a challenging year for the region, we continue to maintain high levels of capitalization and liquidity and remain fully committed to the markets across the GCC,” said Abdul-Aziz Al Ghurair, Chief Executive Officer of Mashreq.
The total income for 2011 of Dh3.9 billion represents an 11.7 per cent drop relative to 2010; Net interest income and income from Islamic products net of distribution to depositors for the year 2011 reported at Dh1.9 billion was down 15.1 per cent while net fee, commission and other income at Dh1.9 billion was down 8 per cent. However the ratio of Net fee, commission and other income to operating income stood close to 50 per cent, which is one of the best in its class.
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