Mashreq posts Dh1.2 billion H1 net profit
Low impairment and higher non-interest income supported profit growth
Dubai: Mashreq on Sunday posted Dh1.2 billion net profits for the first half of 2019, up 5.2 per cent compared to the same period last year.
The bank reported a sharp decline in impairment allowances of 18.2 per cent, year on year.
“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,” said Abdul Aziz Al Ghurair, Mashreq’s CEO.
During the first six months of this year, the bank recorded steady growth of 2.1 per cent in loans and advances. Loan-to-deposit ratio remained robust at 91.1 per cent at the end of June 2019.
“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,” said Al Ghurair.
Bank continued to maintain strong 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 billion, constituting 128 per cent coverage for non-performing loans.
In the first half of 2019, Mashreq maintained strong liquidity position with liquid assets ratio at 29.2 per cent and cash and due from banks at Dh37.1 billion as on 30th June 2019.
The bank is in the process of implementing a digital and branch transformation strategy. “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.
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 per cent, respectively.