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Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the first quarter ending 31st March 2018.
Key highlights [1Q 2018 vs 1Q 2017]:
Good growth in Net Profit
Net profit increased by 9.5% year-on-year to AED 598 million primarily due to a 4% increase in operating income
Net Interest Income & Net Income from Islamic Products is up by 6.7% year-on-year, on the back of a 3.9% loan growth in the first quarter
Consistently high proportion of net fee and commission income
Mashreq’s best-in-class non-interest income to operating income ratio remained high at 40%
Insurance income, FX & Other income increased by 21.6% YoY
Healthy balance sheet composition
Total Assets decreased by 1.4% YTD to reach AED 123.4 billion; Customer Deposits increased slightly by 0.6% YTD to reach AED 76.5 billion
Loan-to-Deposit ratio remained healthy at 85.2% at the end of March 2018
Strong liquidity and capital position
Liquid Assets to Total Assets stood at 26.5% with Cash and Due from Banks at AED 32.7 billion
As per Basel III, Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 17.1% and 16.1% respectively
Maintained asset quality
Non-Performing Loans to Gross Loans ratio remained relatively steady at 2.9% at the end of March 2018.
The risk charge for the quarter decreased from AED 571 million in 4Q 2017 to AED 302 million in 1Q 2018 and Total Provisions for Loans and advances reached AED 4.2 billion, constituting 192.7% coverage for Non-Performing
Loans
Mashreq delivered good financial results for the quarter ending March 2018, reporting a net profit of AED 598 million. Earnings per share are strong at AED 3.37 as of March 2018.
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