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Abu Dhabi /Â WAM
Mashreq, a UAE-based bank, posted a three percent increase in the year 2017’s first quarter net profits, with earning per share reaching AED3.08 as of March 2017.
The bank in a statement attributed the increase in net profits to AED 546 to a 15% decrease in impairment allowance, a 3.6 percent year-on-year decline in net interest income and net income from Islamic products on the back on flat loan growth.
According to the bank, the total assets decreased by 1.7 percent in the year to reach AED120.7 billion, while customer deposits fell slightly by 0.8 percent to AED76.4 billion.
Liquid Assets to total assets stood at 28.1% with cash and due from banks at AED 33.9 billion, while the capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit
and stood at 17.1% and 16.2%
respectively
Mashreq’s CEO, Abdul Aziz Al Ghurair commented, “Given the challenging business environment in 2016, Mashreq’s cautious stance has allowed us to stay focussed on building quality assets whilst upholding a strong liquidity position, as evidenced by the bank’s healthy loan-to-deposit ratio of 80%.”
He added, “The stabilisation in the business environment coupled with our sharp focus on asset quality has led to lower provisions for impairment, down 27% from the previous quarter. We are well poised to take advantage of market opportunities, and will see better upside in profits if
the operating environment remains stable.”
Al Ghurair concluded, “As we celebrate our 50th year, we are thankful for the decades of support we have enjoyed from our clients and partners. We remain committed to these long term relationships as we look forward to 50 more years.”