Mashreq posts Dh85m profit amid pandemic
Mashreq reported on Wednesday a net profit of Dh85 million during the first half of 2021 despite the pandemic and its far-reaching impacts.
The bank said in a statement that its operating income rose by 1.4 per cent over the previous year to Dh2.9 billion due to improvements in fees and commission while its non-interest income to operating income ratio improved to 49.8 per cent (47.1 per cent as of June 2020).
The bank said its first-half operating profit of Dh1.6 billion is a 4.6 per cent increase compared to the same 2020 period “as a result of increased operating income and reduced operating expense”.
The lender’s impairment allowance stands at Dh1.5 billion compared to Dh978 million for the first half of 2020, “reflecting conservative provisioning policy”.
Abdulaziz Al Ghurair, chairman of Mashreq Bank, said the bank was fortunate to have been steered through the pandemic and its far-reaching impacts by a national leadership that has taken proactive measures to protect business interests, jobs and economic stability.
“As regional and global markets adjust to the dynamics of a partially vaccinated world population and a fast-evolving virus, the near to mid-term-outlook remains uncertain,” he said.
The extension of Tess to June 2022 reflects this reality. “However, we remain cautiously optimistic that with the continued support of the UAE government, a sustained economic recovery and Mashreq’s ongoing digital transformation, the future looks promising,” said Al Ghurair.
“Given the changing dynamics of the workplace, our operating model to ‘Work from Anywhere’ means the bank is well placed to leverage the full potential of its key technology platforms to offer a seamless experience to our customers. These attributes will ensure that we continue to generate solid returns for our shareholders and remain ahead of the existential change impacting our industry,” Al Ghurair said.
The bank’s focused strategy and advanced digital transformation program served Mashreq well throughout the first half of 2021.