Dubai: Mashreq Bank saw a 90.5 per cent slide in first quarter 2021 net profits, totalling Dh43 million against Dh450 million a year ago. But the bank will take a lot of confidence from the comparison with the fourth quarter, when it recorded net losses of Dh1.63 billion.
Fee and commissions came to Dh449 million against Dh348 million a year ago, while total operating income was Dh1.4 billion, for a marginal 7.5 per cent decline from Dh1.52 billion. On a quarter-on-quarter basis, the final three months of 2020 delivered Dh1.17 billion in operating income.
"While we still expect the first-half of the year to remain challenging, we continue to be cautiously optimistic about an economic recovery in the second half of the year," said AbdulAziz Al Ghurair, Chairman. "We remain focused on expanding the bank’s digital offering through enhancing our operating model and continuing to strategically invest in key technology platforms. This will ensure that we continue to generate solid returns for our shareholders and remain ahead of the existential change impacting our industry.”
There is a growth of 2.2 per cent in customer deposits to Dh90.2 billion, while the liquid assets ratio stood at 28.8 per cent with cash and dues from banks at Dh42.4 billion.
“The bank’s financials remain stable, as evidenced by our capital adequacy ratio of 14.4 per cent (and Tier 1 ratio of 13.3 per cent) and overall liquidity," said Ahmed Abdelaal, Group CEO. "Our core businesses across retail, corporate and investment banking, as well as our international franchises remain strong, continue to generate sound earnings, and well positioned for future growth as we emerge from the pandemic."