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Mon 16 Oct 2017 06:06 PM

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Dubai's Mashreq posts 12% rise in net profit

CEO says nine-month figures put bank in strong position for future growth

Dubai's Mashreq posts 12% rise in net profit
Mashreq's CEO, AbdulAziz Al Ghurair.

Mashreq, one of Dubai's biggest banks, on Monday reported a 12 percent increase in net profit for the first nine months of 2017 compared to the year-earlier period.

Net profit stood at AED1.7 billion while total assets remained stable at AED121.8 billion, the bank said in a statement.

The bank's impairment allowance fell by 30 percent and operating expenses dropped by almost 2 percent, it added.

Loans and advances increased by 6 percent to reach AED64.7 billion compared to December 2016 while customer deposits remained steady at AED76.1 billion.

Mashreq's CEO, AbdulAziz Al Ghurair, said: “It has been a period of muted growth for the UAE banking system with the banking sector gross credit growing by only 0.3 percent as of August. However at Mashreq we have been successful in increasing our loan book by 6 percent year to date.

"With a focus on cost management that has seen us reduce operating expenses by 1.7 percent year on year and a strong 30 percent decline in credit costs, I am delighted to report a 12 percent year on year increase in net profits. Our strong liquidity and capital position has us well placed to capitalize on future growth opportunities.”

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