Dubai: Mashreq Bank’s net profit for the first nine months have totalled Dh265 million, down from the Dh352 million last year.
But there were signs of better tidings, with operating profit at Dh2.4 billion from a 14.3 per cent increase from a year ago. Operating income gains came to 8.2 per cent to Dh4.3 billion, brought on by higher fees and commissions.
“Despite the bank’s conservative risk strategy, the bank has been able to deliver robust growth and maintain a comfortable liquidity position (and) providing fiscal headroom,” said Abdul Aziz Al Ghurair, Chairman, in a statement.
Higher charges
On impairment allowances, Mashreq has set aside Dh2 billion from Dh1.6 billion in 2020. Non-performing loans to gross loans ratio was at 5.6 per cent by end September against 4.7 per cent in June. Total provision for loans and advances reached Dh6.6 billion.
The bank’s operating profit rise by 14.3 per cent is "generated mainly from a 26.2 per cent increase in fee and commission income," said Ahmed Abdelaal, Group CEO. "These financial outcomes reflect not only the bank’s fiscal resilience but a sustained economic recovery at home and abroad."
