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Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the nine months ending 30th September 2019.
Key highlights [9M 2019 vs 9M 2018]:
Net profit for 9M 2019 stood at AED 1.76 billion - a 0.5% increase YoY
Impairment Allowance down by 15.9% YoY
- High proportion of non-interest income
Mashreq’s best-in-class non-interest income to operating income ratio remained high at 39.3%
Significant growth in Investment Income
- Strong liquidity & Capital position
Liquid Assets ratio stood at 32.6% with Cash and Due from Banks at AED 43.6 billion as on 30th September 2019
Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.8% and 15.6% respectively
- Solid Balance Sheet Growth
Total Assets grew by 5.0% to AED 146.9 billion while Loans and Advances increased by 4.2% to reach AED 72.2 billion as compared to December 2018
Customer Deposits grew by 1.1% during the year to reach AED 84.1 billion
Loan-to-Deposit ratio remained strong at 85.8% at the end of 30th September 2019
Non-Performing Loans to Gross Loans ratio decreased slightly from 3.5% in June to 3.4% at the end of September 2019
Total Provisions for Loans and advances reached AED 4.1 billion, constituting 130.9% coverage for Non-Performing Loans
Mashreq's CEO, H.E. Abdul Aziz Al Ghurair, said: “I am pleased to announce that 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 of AED 1.8 billion. Notably, 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 - standing at 16.8% and 15.6% respectively. Overall, our strong performance must also acknowledge our people’s continuous efforts to introduce innovation within our services.
As we continue to implement our digital transformation strategy, we remain focused on improving the banking experience for all our customers through on-going investments in digitization and technology. In particular, the launch of Mashreq’s Neo-Biz is the latest example of how the bank is leveraging innovation to offer a seamless experience to our business customers. The initiative is also geared towards supporting the vital SME eco-system, which has historically been the backbone of the UAE economy.
Today, technology is evolving at a rapid pace, and it has become of paramount importance to continuously launch new initiatives that are aligned with customer needs and new technologies. Supplementing this goal, we signed a strategic tripartite agreement with Dubai International Financial Centre (DIFC) and norbloc, to launch the region’s first production-ready blockchain KYC data sharing consortium next year. This alliance will further support businesses and corporates in Dubai, in line with the UAE Blockchain Strategy 2021 – to make processes faster and the overall customer experience better.
Al Ghurair concluded, “As we approach the last quarter of the year, the bank remains well poised to deliver on the successes exhibited during the first nine months of the year. We will continue to implement on our successful strategy built around providing an excellent customer experience, as well as leveraging the latest technological innovations to offer best in class products and services in line with evolving customer needs.”
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