Dubai: Mashreq, one of the leading financial institutions in the UAE has reported a 12 per cent increase in its net profits for the first nine months of 2017 to Dh1.7 billion.
Impairment allowances for the period were down by 30 per cent year on year as operating expenses lower by almost 2 per cent on the back of effective cost management, Mashreq said in a statement.
“It has been a period of muted growth for the UAE banking system with the banking sector Gross Credit growing by only 0.3 per cent as of August 2017," said Mashreq's CEO, AbdulAziz Al Ghurair.
"However, at Mashreq we have been successful in increasing our loan book by 6 per cent year to date. With a focus on cost management that has seen us reduce operating expenses by 1.7 per cent year on year and a strong 30 per cent decline in credit costs,” said Mashreq's CEO, AbdulAziz Al Ghurair.
Total Assets remained stable at Dh 121.8 billion while loans and advances increased by 6 per cent to reach Dh64.7 billion as compared to December 2016 customer deposits remained steady year to date at Dh76.1 billion loan-to-deposit ratio remained at 85 per cent at the end of September 2017
The banks’ non-interest income to operating income ratio remained high at 39.8 per cent as investment income surged by 73.8 per cent year on year.
Bank continued maintain strong asset quality with non-performing loans to gross loans ratio of 3.7 per cent at the end of September 2017.
