DOHA: Mashreq, one of the UAE’s leading financial institutions which has operations in Qatar has announced strong first quarter results reporting 35 percent increase in its net profit in the first quarter of 2014, climbing to Dh575m compared to Dh425m for the same period in 2013.
The bank’s total operating income for the period grew to Dh1.4bn, an increase of 23.6 percent compared to a year earlier, driven by both net interest income and net fee and commission income.
The bank’s net interest income at the end of March 2014 was up by 41 percent compared to a year earlier, driven by 5.6 percent year-on-year increase in loan volume and 45 bps improvement in net interest margin, which was predominantly led by change in balance sheet structure and composition of loans.
Earnings per share strengthened to Dh3.40 at the end of March this year compared to Dh2.52 a year earlier.
Asset quality continued to improve as non-performing loans to gross loans ratio reduced from 6 percent in December 2013 to 5.8 percent at the end of March 2014. Mashreq’s allowances for impairment, net, was Dh251m, and total provisions for loans and advances reached Dh3.3bn, constituting 102 percent coverage for non-performing loans as on March 31, 2014.
Mashreq’s CEO, AbdulAziz Al Ghurair, said: “The first quarter results build confidence and are usually indicative of the year ahead. We have worked hard to make sure that our performance matches our aspirations and the bank’s true potential. So it gives me great satisfaction to announce that we have started off the year with an increase of 35 percent in net profits from the same period last year…”.
Loans and advances grew by 5.6 percent during the first quarter of 2014 to reach Dh53.3bn, compared to Dh50.4bn at the end of December 2013.
On Mashreq’s operations in Qatar, the bank noted 2014 has been a year of profound change for Mashreq Qatar. The bank introduced the biggest card discount programme in Qatar.
For personal banking customers, the bank introduced Majestic III, which offers QR10,000 plus worth of savings along with a free iPad Air to loan customers. Zero percent interest free shopping offers have been introduced at leading retail outlets like StarLinks and 51 East.
On the electronic banking front, Mashreq Qatar has introduced a range of improvements. Customers can now use MashreqOnline banking to pay their Kahrama bills and the payment is instantly reflected at the utility providers. New statement features have been introduced offering customers a more convenient way to download their bank statements with improved details. The Peninsula