Dubai: Mashreq Bank on Monday reported Dh1.76 billion net profit for the nine-month period, up 0.5 per cent year-on-year compared to the same period last year.
For the third quarter of this year the bank reported a net profit of Dh536 million compared to Dh587 million reported in the same period last year.
“Mashreq Bank has once again achieved a strong set of results at the close of our third quarter driven by robust financial performance across our core businesses. The bank’s solid market performance has enabled us to record a healthy net profit,” said Abdul Aziz Al Ghurair, Mashreq’s CEO.
The bank posted a sharp decline impairment allowance in the first nine months of the year with a 15.9 per cent decline year-on-year.
Mashreq reported a total operating income of Dh4.59 billion for the first nine months of the year with net interest income of Dh2.74 billion, marginally down from the same period last year. Mashreq continued to report high proportion of non-interest income with non-interest income to operating income ratio remaining high at 39.3 per cent.
The bank posted solid balance sheet growth in the 9-month period with total assets growing by 5 per cent to Dh146.9 billion while loans and advances increased by 4.2 per cent to reach Dh72.2 billion as compared to December 2018.
Customer deposits grew by 1.1 per cent during the year to reach Dh84.1 billion. Loan-to-deposit ratio remained strong at 85.8 per cent at the end of September 30, 2019.
The bank continued to maintain strong asset quality with non-performing loans to gross loans ratio decreasing slightly from 3.5 per cent in June to 3.4 per cent at the end of September 2019. Total provisions for loans and advances reached Dh4.1 billion, constituting 130.9 per cent coverage for non-performing loans.
Mashreq’s liquidity and capital position remains strong with liquid assets ratio at 32.6 per cent with cash and due from banks at Dh43.6 billion as on September 30, 2019.
Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.8 per cent and 15.6 per cent respectively.
“We continue to maintain a healthy balance sheet as well as strong liquidity, with our Capital adequacy ratio and tier 1 capital ratios continuing to be significantly higher than the regulatory limit. Overall, our strong performance must also acknowledge our people’s continuous efforts to introduce innovation within our services,” said Al Ghurair.