Dubai: Mashreq, one of the leading financial institutions in the UAE on Monday reported a net profit of Dh2.1 billion in 2019 compared to Dh2.06 billion in 2018.
For the fourth quarter of 2019, the bank reported Dh312 million net profit, up 1.4 per cent year on year.
The bank’s non-interest income to operating income ratio remained high at 38.2 per cent. Significant growth in investment income from Dh27 million in 2018 to Dh150 million also supported the overall profits.
“Mashreq Bank continued to register strong performance and achieved a healthy net profit of Dh2.1 billion in the year. Importantly, this was achieved whilst maintaining a capital adequacy ratio and a Tier 1 capital ratio that was significantly higher than the regulatory limit at 16.3 per cent and 15.2 per cent, respectively,” said Mashreq’s CEO, Ahmed Abdelaal.
In 2019, Mashreq’s total assets grew by 11.8 per cent to Dh159.4 billion while loans and advances increased by 10 per cent to reach Dh76.2 billion as compared to December 2018. During the year customer deposits grew by 9.3 per cent during the year to reach Dh91.0 billion.
Loan-to-deposit ratio remained strong at 83.7 per cent at the end of 31st December 2019 and impairment allowance was down by 1.5 per cent year on year. Non-performing loans (NPLs) to gross loans ratio stood at 3.6 per cent at the end of December 2019. Total provisions for loans and advances reached Dh4 billion, constituting 116.8 per cent coverage for NPLs.
At the yearend 2019, liquid assets ratio stood at 32.6 per cent with cash and due from banks were at Dh47.5 billion. Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.3 per cent and 15.1 per cent, respectively.