Mashreq Bank reported a 56% drop in half-year profits, due mainly to the impact of Covid-19 and rising impairments.
The bank said its first-half profit dropped to AED535 million ($145.7m), while its impairments rose sharply from AED482 million ($131.2m) to AED978 million ($266.3m).
“We expect the business environment to remain tough moving forward, but our agility-based model and exceptional digital capabilities mean we are well positioned to continue supporting our customers and the wider economy of the UAE, as we endeavour to weather the challenges that lie ahead,” said Ahmed Abdelaal, group CEO of Mashreq Bank.
Abdelaal added that “despite the headwinds caused by unprecedented challenges, Mashreq remains resilient”.
Mashreq said customer deposits have surged 8.3 percent year-to-date to reach AED98.6 billion ($26.8bn) in the first half of the year.
The bank implemented “crisis management actions” to ensure safety and security of its staff and to be able to provide an uninterrupted service to its customers.
“As we navigate the ongoing economic uncertainty, we remain well placed to handle a variety of scenarios, and will continue to operate prudently to manage any risks that lie ahead,” said AbdulAziz Al Ghurair, chairman of Mashreq.
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