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148260
Mon, 11/01/2010 - 17:05
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https://oananews.org//node/148260
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Mashreq reports a net profit of Dh647 million
Abu Dhabi, Nov 1, 2010 (WAM)- Mashreq, one of the UAE's leading financial institutions announced a net profit of AED 647.4 million for the nine months ended 30th September 2010. The Bank's solid performance, with an operating income of Dh3.2 Billion, is reported against a backdrop of challenging local and global economic conditions.
The Bank's net interest income and income from Islamic products net of distribution increased by 10.3 per cent to Dh1.74 billion in the first nine months of year 2010 compared with AED 1.58 billion for the same period last year. The growth in net interest income was achieved by improvement in net interest margins through strategic management of the balance sheet and reduction in cost of funding. The Net Interest margin improved from 2.24 per cent for full year 2009 to 2.60 per cent for the first 9 months of 2010.
The core Fees and other income, after excluding certain onetime gains recorded last year has dropped by 13 per cent due to the reduction in banking products fees and foreign exchange income. However, the Fee and Other Income to Gross Income ratio at 46 per cent remained one of the highest in the market.
Commenting on Mashreq's nine months performance, H.E. Abdul Aziz Al Ghurair, the CEO of Mashreq said, "We have seen stability and growth in Q3 2010 in general, and the Bank's current position is ensuring that we remain optimistic of further growth in the coming period." "In spite of the difficult global financial environment, Mashreq has delivered a robust performance during the first nine months of the year. Our well diversified and stable revenue streams highlight the sustainability of our operating strategy in these uncertain times." Al Ghurair added.
During the period under review, the Bank has undertaken significant expansion, however proactive cost management has enabled Mashreq to maintain the same levels of operational expenses year on year, while being able to fund its continued growth and investment in strategic projects.
Mashreq continues with prudent provisioning policies and the Bank has set aside Dh317 Million for the third quarter. The total provisions for the first nine months of 2010 at Dh1.21 Billion is lower by 12.3 per cent as compared to Dh1.38 Billion for the same period of 2009, reflecting improvement in portfolio quality.
In line with the Bank's strategy of re-positioning the Balance Sheet, Loans and advances as of 30 September 2010 have declined from Dh47.7 Billion in December 2009 to Dh43.3 billion, a drop of 9.4 per cent. Customer deposits as of September 2010 were Dh49.2 billion a decline of 8.2 per cent from December 2009 levels. This ensured that Advances to Deposits ratio remained at an optimum level of 88 per cent and Liquid Assets comprising of cash and due from banks were strong at 31 per cent of Total Assets, even after repayment of the Dh1.1 billion of EMTN tranche that matured during the first quarter of 2010.
The Capital Adequacy ratio at the end of September 2010 under new Basel II guidelines improved to 22.3 per cent as compared to 20.18 per cent at the end of 2009. The Tier One ratio also improved from 14 per cent at the end of 2009 to 15.6 per cent at the end of Sep. 2010.
The strong liquidity and Capital Adequacy ratio reflects the Bank's overall strength and management's prudent policies in a challenging environment.
At The Corporate and Investment Banking Group, Mashreq has had an eventful 9 months with focus on business growth in an improving economic environment. The bank has made significant investments in developing Advanced Cash Management and Transaction Banking Services. Mashreq was also the Lead Receiving Bank for the highly successful rights issue of EITC (Du).
Mashreq continues to expand its expertise within the GCC and MENA region, while it maintains its leading position in financing global contractors especially in the infrastructure and energy segments.
At an operational level, Mashreq continues to enhance and expand its offerings to maintain its leading positioning in the UAE banking industry.
At a Retail level, during 2010, Mashreq has launched a refurbishment plan across its branch network. In line with its commitment to offer a unique customer experience, Mashreq has now upgraded nearly 70 per cent of the entire network including branches in Dubai, Al Ain, Abu Dhabi and Sharjah.
Some of the strategic new locations opened in this year, are at the Mall of the Emirates new "Fashion Dome", Al Riqqa Head Office, Khalifa (A) City in Abu Dhabi and at the Entrepreneur Business Village. EBV was launched as part of an initiative under the Sheikh Mohammed bin Rashid Establishment for Young Business Leaders, and includes Mashreq Gold for affluent customers in some of these locations. In addition, there are plans to open new branches across UAE and more specifically in Abu Dhabi.
Reaffirming its commitment to meeting customers' banking requirements, Mashreq announced the launch of an iPhone and Arabic language service applications to compliment its unmatched mobile banking service. This fully transactional service allows Mashreq customers to check their accounts, make payments and transfer funds anywhere in the world through their mobile phones at anytime, from anywhere.
Commenting on the operational growth of Mashreq, Al Ghurair said: "As a National financial institution, we are committed to UAE's economy growth, and we are strongly moving towards our expansion strategy in the UAE. We continue to collect recognition and awards for our efforts. This recognises our continuous efforts as a leading player in the industry." Additionally, Mashreq won the Global Magazine award for "Best Emerging Market Bank Middle East 2010", recognising Mashreq's efforts in providing world class services.
The Bank also introduced Mashreq Al Mustaqbal, a management trainee program to bring on board talented UAE nationals and fast track their growth into top managerial positions. To date this scheme has resulted in the recruitment of 13 UAE nationals, and the same by the end of this year, in addition to new programs designed to support the talented UAE nationals in the banking sector. – Emirates News Agency, WAM
The Bank's net interest income and income from Islamic products net of distribution increased by 10.3 per cent to Dh1.74 billion in the first nine months of year 2010 compared with AED 1.58 billion for the same period last year. The growth in net interest income was achieved by improvement in net interest margins through strategic management of the balance sheet and reduction in cost of funding. The Net Interest margin improved from 2.24 per cent for full year 2009 to 2.60 per cent for the first 9 months of 2010.
The core Fees and other income, after excluding certain onetime gains recorded last year has dropped by 13 per cent due to the reduction in banking products fees and foreign exchange income. However, the Fee and Other Income to Gross Income ratio at 46 per cent remained one of the highest in the market.
Commenting on Mashreq's nine months performance, H.E. Abdul Aziz Al Ghurair, the CEO of Mashreq said, "We have seen stability and growth in Q3 2010 in general, and the Bank's current position is ensuring that we remain optimistic of further growth in the coming period." "In spite of the difficult global financial environment, Mashreq has delivered a robust performance during the first nine months of the year. Our well diversified and stable revenue streams highlight the sustainability of our operating strategy in these uncertain times." Al Ghurair added.
During the period under review, the Bank has undertaken significant expansion, however proactive cost management has enabled Mashreq to maintain the same levels of operational expenses year on year, while being able to fund its continued growth and investment in strategic projects.
Mashreq continues with prudent provisioning policies and the Bank has set aside Dh317 Million for the third quarter. The total provisions for the first nine months of 2010 at Dh1.21 Billion is lower by 12.3 per cent as compared to Dh1.38 Billion for the same period of 2009, reflecting improvement in portfolio quality.
In line with the Bank's strategy of re-positioning the Balance Sheet, Loans and advances as of 30 September 2010 have declined from Dh47.7 Billion in December 2009 to Dh43.3 billion, a drop of 9.4 per cent. Customer deposits as of September 2010 were Dh49.2 billion a decline of 8.2 per cent from December 2009 levels. This ensured that Advances to Deposits ratio remained at an optimum level of 88 per cent and Liquid Assets comprising of cash and due from banks were strong at 31 per cent of Total Assets, even after repayment of the Dh1.1 billion of EMTN tranche that matured during the first quarter of 2010.
The Capital Adequacy ratio at the end of September 2010 under new Basel II guidelines improved to 22.3 per cent as compared to 20.18 per cent at the end of 2009. The Tier One ratio also improved from 14 per cent at the end of 2009 to 15.6 per cent at the end of Sep. 2010.
The strong liquidity and Capital Adequacy ratio reflects the Bank's overall strength and management's prudent policies in a challenging environment.
At The Corporate and Investment Banking Group, Mashreq has had an eventful 9 months with focus on business growth in an improving economic environment. The bank has made significant investments in developing Advanced Cash Management and Transaction Banking Services. Mashreq was also the Lead Receiving Bank for the highly successful rights issue of EITC (Du).
Mashreq continues to expand its expertise within the GCC and MENA region, while it maintains its leading position in financing global contractors especially in the infrastructure and energy segments.
At an operational level, Mashreq continues to enhance and expand its offerings to maintain its leading positioning in the UAE banking industry.
At a Retail level, during 2010, Mashreq has launched a refurbishment plan across its branch network. In line with its commitment to offer a unique customer experience, Mashreq has now upgraded nearly 70 per cent of the entire network including branches in Dubai, Al Ain, Abu Dhabi and Sharjah.
Some of the strategic new locations opened in this year, are at the Mall of the Emirates new "Fashion Dome", Al Riqqa Head Office, Khalifa (A) City in Abu Dhabi and at the Entrepreneur Business Village. EBV was launched as part of an initiative under the Sheikh Mohammed bin Rashid Establishment for Young Business Leaders, and includes Mashreq Gold for affluent customers in some of these locations. In addition, there are plans to open new branches across UAE and more specifically in Abu Dhabi.
Reaffirming its commitment to meeting customers' banking requirements, Mashreq announced the launch of an iPhone and Arabic language service applications to compliment its unmatched mobile banking service. This fully transactional service allows Mashreq customers to check their accounts, make payments and transfer funds anywhere in the world through their mobile phones at anytime, from anywhere.
Commenting on the operational growth of Mashreq, Al Ghurair said: "As a National financial institution, we are committed to UAE's economy growth, and we are strongly moving towards our expansion strategy in the UAE. We continue to collect recognition and awards for our efforts. This recognises our continuous efforts as a leading player in the industry." Additionally, Mashreq won the Global Magazine award for "Best Emerging Market Bank Middle East 2010", recognising Mashreq's efforts in providing world class services.
The Bank also introduced Mashreq Al Mustaqbal, a management trainee program to bring on board talented UAE nationals and fast track their growth into top managerial positions. To date this scheme has resulted in the recruitment of 13 UAE nationals, and the same by the end of this year, in addition to new programs designed to support the talented UAE nationals in the banking sector. – Emirates News Agency, WAM
