Staff Report

Dubai – Mashreq declared a net profit of Dh1.1 billion for the first half 2017, up 3 per cent compared to the first half of 2016.
The bank said a significant decline of impairment allowance by 22.3 per cent year on year boosted the first half profits.
Net profit for the second quarter increased by 2.1 per cent to Dh557 million from Dh546 million in the first quarter of 2017.
“Mashreq’s continued focus on business performance while remaining committed to our customers’ needs is evident in the financial results for the first half of 2017,” Mashreq’s CEO Abdul Aziz Al Ghurair said in a statement.
Total operating income for the first half of 2017 was Dh3 billion, a year-on-year decrease of 5.5 per cent compared to the first half of 2016 operating income of Dh3.2 billion due to a fall in non-interest income.
Net interest income and income from Islamic financing remained stable at Dh1.8 billion compared to the first half of 2016. Though investment income increased by 52.4 per cent, total non-interest income fell by 9.9 per cent as net fee and commission decreased by 14.7 per cent year-on-year to reach Dh763 million.
Operating expenses for the first half decreased by 2.4 per cent year-on-year to reach Dh1.2 billion; Efficiency ratio at 39.3 per cent in the first half of 2017 increased slightly with respect to the previous year.
Mashreq’s total assets increased by 2.4 per cent in the year to Dh125.8 billion whereas loans and advances increased by 2.4 per cent to Dh62.4 billion as compared to year-end 2016. Customer Deposits increased by 1.1 per cent year to date to reach Dh77.9 billion.
Non-performing loans stood at Dh2.6 billion in June 2017 leading to a non-performing loans to gross loans ratio of 3.3 per cent at the end of June 2017, Net impairment allowances for the first half of 2017 were Dh652 million compared to Dh838 million in the first half of 2016. Total provisions for loans and advances reached Dh3.7 billion, constituting 150.1 per cent coverage for non-performing loans as of June 2017.