Mashreq Bank of UAE reports 25% drop in net profit to $72m

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The UAE lender’s operating profit from January to September this year went up by 14.3 percent to 2.4 billion dirhams.
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  • Total net profit for the period ending September 30, 2021 reached 265 million dirhams ($72.14 million), down by 24.7 percent from 352 million dirhams a year earlier
  • Quarterly net profit stood at 180 million dirhams ($49 million), down by 1.6 percent from 183 million dirhams in the same period last year

Mashreq Bank, the UAE lender, has seen its net profit drop off by a quarter in the first nine months of the year despite a strong growth in operating income.

Total net profit for the period ending September 30, 2021 reached 265 million dirhams ($72.14 million), down by 24.7 percent from 352 million dirhams a year earlier, the bank said in a disclosure to the Dubai Financial Market (DFM) on Tuesday.

Quarterly net profit stood at 180 million dirhams ($49 million), down by 1.6 percent from 183 million dirhams in the same period last year.

Abdul Aziz Al Ghurair, Chairman of Mashreq Bank, maintained that the bank has been able to deliver “robust growth“, as well as “maintain a comfortable liquidity position” amid improving business environment.

“The UAE national economy has returned to growth, providing new opportunities for Mashreq across all lines of business,” Al Ghurair said.

“The continued support from the UAE’s national leadership, as well as significant milestones such as the Expo 2020 and the nation’s upcoming Golden Jubilee, have resulted in a stronger business environment and increased consumer confidence.”

The UAE lender’s operating profit from January to September this year went up by 14.3 percent to 2.4 billion dirhams compared to the same period in 2020. This is mainly due to the 26.2 percent increase in fee and commission income.

The bank’s total assets went up by 7 percent to 169.6 billion dirhams, while loans and advances grew by 7.6 percent to 77 billion dirhams over the same period. Loan-to-deposit ratio remained stable at 81.2 percent at the end of September 2021.

Impairment allowance stood at 2 billion dirhams, up from 1.6 billion dirhams a year earlier. Non-performing loans to gross loans ratio was at 5.6 percent as of the end of September, compared to 4.7 percent as of June 2021.

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