The UAE News report by Abdul Basit: Mashreq on Thursday declared a net profit of Dh43 million for the first three-month period of 2021.
The bank’s Operating Income has increased by 19.7% over the previous quarter to AED 1.4 billion due to improvements in net interest income and fees and commission.
Mashreq’s non-interest income to operating income ratio improved to 50.5% (48.0% as of December 2020).
The bank’s total assets increased by 2.4% YTD to AED 162.3 billion and Loans and Advances increased by 6.0% YTD to AED 75.8 billion.
Its Loan-to-Deposit ratio increased to 84.0% at the end of March 2021 vs 81% at the end of December 2020.
The bank said its Non-Performing Loans to Gross Loans ratio was at 4.9% as of end of March 2021 down from 5.1% at the end of last quarter.
Total provision for loans and advances reached AED 4.8 billion and coverage ratio stood at 104.3% as on 31st March 2021.
AbdulAziz Al Ghurair, Chairman of Mashreq, said: “Despite economic headwinds, Mashreq reported a net profit of AED 43 million during the first quarter of the year. The bank has continued to follow a prudent risk policy, which is reflected in the level of provisions. We feel fortunate to be operating in the UAE, where the country’s leadership continue to take proactive measures to respond to the current pandemic and protect business interests. While we still expect the first half of the year to remain challenging, we continue to be cautiously optimistic about an economic recovery in the second half of the year.
Looking ahead, we remain focused on expanding the bank’s digital offering through enhancing our operating model and continuing to strategically invest in key technology platforms to offer a seamless experience to our customers. This will ensure that we continue to generate solid returns for our shareholders and remain ahead of the existential change impacting our industry.”
Ahmed Abdelaal, Group CEO, Mashreq Bank, said: “The bank’s financials remain stable, as evidenced by our capital adequacy ratio of 14.4% (and Tier 1 ratio of 13.3%) and overall liquidity (liquid assets to total assets ratio of 28.8%). Additionally, our core businesses across retail banking, corporate and investment banking, as well as our international franchises remain strong, continue to generate sound earnings, and are well positioned for future growth as we emerge from the pandemic.
Our strategic focus on customer experience continues to drive our activity across the bank, from our digital investments to our investment in people. We’ve seen acceleration in our digital transformation from the branches to our partnerships with FinTechs, and are investing in solutions that are innovative, creative but more importantly add value to our customers and shareholders.
During these challenging times, we continue to concentrate on the well-being of our employees by enhancing our hygiene, safety and security standards across all our branches and offices. Adapting to the changing working environment, we have successfully implemented a revised operating structure, introduced a more flexible approach to working, and invested in a more diverse talent pool. We are confident that these initiatives will position us strongly to deliver on our core objective of meeting the evolving needs of our clients, as well as delivering operational cost efficiencies.” – abdulbasit@theuaenews.com
