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Sun 21 Oct 2018 05:52 PM

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Mashreq Bank reports increase in Q3 profit

Mashreq Bank plans to invest heavily in robotics, artificial intelligence and machine learning

Mashreq Bank reports increase in Q3 profit
Mashreq Bank plans to invest heavily in robotics, artificial intelligence and machine learning

UAE-based Mashreq Bank reported third-quarter income of $159 million (AED587m), a 4.6 percent increase on the $152m (AED561m) it reported in the same quarter last year 

In financial results published on Sunday, the bank reported a 5 percent increase in net profit to AED 1.7 billion ($462.81 million) in the first nine months of 2018 compared to the same time period last year, while operating income rose 3.6 percent to AED 4.6 billion ($1.25 billion). 

The bank’s non-interest income to operating income ratio remains high at 39.2 percent, while insurance, FX and other income rose by 47.6 percent year-on-year. 

Additionally, total assets rose 9.8 percent to AED 137.4 billion ($37.41 billion), whereas loans and advances increased by 10.6 percent to AED 69.3 billion ($18.87 billion) as compared to December 2017. Customer deposits increased 8.1 percent year-to-date and currently stand at AED 82.2 billion ($22.38 billion). 

Liquid assets constituted 30.6 percent of total assets, with cash and due from banks standing at AED 39.1 billion ($10.64 billion). 

“With a firm focus on fostering innovation in each aspect of our business, Mashreq’s third quarter results are a testament to the continuing success of our transformation,” said Mashreq CEO Abdul Aziz Al Ghurair.

“We achieved solid growth in our balance sheet with a deposit growth of 8.1 percent year to date, well above market norms.” 

Looking to the future, Al Ghurair said that in the future, the bank remains committed to investing in robotics, artificial intelligence and machine learning, ensuring that customers “benefit from a modern, simplified and intuitive banking experience”. 

“We have already accomplished several major milestones in transforming both our front and back-end processes, and will continue to showcase our agility and our thirst for disruption in our goal to be the region’s preferred banking partner,” he said.

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