Mashreq, a leading financial institution in the UAE, recorded a five per cent year-on-year rise in first quarter net profit to Dh628 million.

dubai — Mashreq, a leading financial institution in the UAE, recorded a five per cent year-onyear rise in first quarter net profit to Dh628 million.

The bank said its total assets grew by 1.2 per cent to Dh141.7 billion while loans and advances increased by 0.9 per cent to reach Dh 69.9 billion as compared to December 2018.

The first quarter saw the lender’s impairment allowance drop by 13.6 per cent year-on-year while its non-interest income to operating income ratio remained high at 40.4 per cent. The Dubai-based lender said in a statement that customer deposits fell in the quarter by 3.1 per cent to Dh80.6 billion while loan-to-deposit ratio remained robust at 86.6 per cent.

The bank’s liquid assets ratio stood at 33.2 per cent with cash and due from banks at Dh44.0 billion in the quarter.

Capital adequacy ratio and Tier 1 capital ratio remains to be significantly higher than the regulatory limit and stood at 16.5 per cent and 15.4 per cent respectively, the bank said. The bank’s non-performing loans to gross loans ratio stood at 3.6 per cent at the end of March 2019 while total Provisions for Loans and advances reached Dh3.8 billion, constituting 123.3 per cent coverage for non-performing loans.

Mashreq’s CEO, AbdulAziz Al Ghurair, said the bank’s constant push for innovation and commitment to being a customer-focused bank had again manifested itself in a solid set of financial results for the first quarter of 2019. “I am pleased to announce that we have posted growth in both our revenue and net profit over the recorded period.”

He said the bank has invested a significant amount of effort and resources to ensure that all key products are designed with the sole intention of improving the customer journey. “Our customers are the focal point of our strategy and that will continue to remain the case as we look to take banking to the next level in the region.” Al Ghurair said this ambition is the cornerstone of the bank’s recent branch transformation strategy. “We are determined to make banking simpler and give our customers the products and services that best serve their needs. As part of this initiative we are currently in the process of transforming a number of our branches to improve efficiency, optimise performance, but more importantly, provide a bespoke experience to our customers.”

He said Mashreq has further strengthened its footprint in the FinTech space by partnering with the startup-boot-camp at the DIFC FinTech Hive. “This partnership will allow us to have access to, and collaborate with, some of the most innovative FinTech companies around.

Our customers are the focal point of our strategy and that will continue to remain the case as we look to take banking to the next level in the region AbdulAziz Al Ghurair,

CEO, Mashreq