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Mashreq posts a three per cent increase in net profit for Q1 2017

Image source: Dave Dugdale/Commons

Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for Q1 ending 31 March 2017

The key highlights of  Q1 2017 vs 1Q 2016 include; stable growth in net profit as it increased by 2.7 per cent year-on-year to AED546 mn primarily due to a 15 per cent decrease in impairment allowances

Net interest income and net income from Islamic Products down by 3.6 per cent year-on-year, on the back of flat loan growth. There is also a consistently high proportion of net fee and commission income.

Mashreq?s best-in-class non-interest income to operating income ratio remained high at 41.6 per cent and   Investment income, FX & Other income increased by 17.9 per cent YoY.

Total assets decreased by 1.7 per cent in the year to reach AED120.7bn; customer deposits declined slightly by 0.8 per cent to reach AED76.4bn.

 Loan-to-deposit ratio remained healthy at 80.5 per cent at the end of March 2017. Liquid assets to total assets stood at 28.1 per cent with cash and due from Banks at AED33.9bn. Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 17.1 per cent and 16.2 per cent respectively.

Non-performing loans to gross loans ratio remained relatively steady at 3.3 per cent at the end of March 2017. The risk charge for the quarter decreased from AED425mn in Q4 2016 to AED311mn and total provisions for loans and advances reached AED3.5bn, constituting 145.5 per cent coverage for non-performing Loans

Mashreq delivered stable financial results for the quarter ending March 2017, reporting a net profit of AED546mn. Earnings per share are strong at AED3.08 as of March 2017.