Dubai: Mashreq on Monday reported a net profit of Dh628 million, up 5 per cent compared to Dh598 million reported in the first quarter of last year.
The bank’s total assets grew by 1.2 per cent to Dh141.7 billion while loans and advances increased by 0.9 per cent to reach Dh69.9 billion as compared to December 2018.
“Mashreq’s constant push for innovation and our commitment to being a customer-focused bank has yet again manifested itself in a solid set of financial results for the first quarter of 2019. I am pleased to announce that we have posted growth in both our revenue and net profit over the recorded period,” said Mashreq’s CEO, Abdul Aziz Al Ghurair.
Customer deposits fell by 3.1 per cent in the quarter to reach Dh80.6 billion. Loan-to-deposit ratio remained robust at 86.6 per cent at the end of March 2019. At the close of the first quarter the bank reported strong liquidity and capital position with liquid assets ratio stood at 33.2 per cent with cash and due from banks at Dh44 billion as at March end 2019.
Overall loan impairment allowance during the first quarter of 2019 was down by 13.6 per cent to Dh261 million compared to Dh302 million in the same quarter last year.
The bank reported sustained asset quality in the first quarter of 2019 with non-performing loans to gross loans ratio at 3.6 per cent. Total provisions for loans and advances reached Dh3.8 billion, constituting 123.3 per cent coverage for non-performing loans.
At the close of the first quarter 2019, Mashreq’s capital adequacy ratio and Tier 1 capital stood at 16.5 per cent and 15.4 per cent respectively.
Mashreq is going through digital transformation and as part of this the bank has undertaken a branch transformation that will see the total number of branches coming down by about 50 per cent this year and conversion of some of these branches into new format digital branches targeted at greater efficiency and better customer experience.
“Our customers are the focal point of our strategy and that will continue to remain the case as we look to take banking to the next level in the region. This ambition is the cornerstone of our recent branch transformation strategy. We are determined to make banking simpler and give our customers the products and services that best serve their needs. As part of this initiative we are currently in the process of transforming a number of our branches to improve efficiency, optimise performance, but more importantly, provide a bespoke experience to our customers,” said Al Ghurair.