Mashreqbank achieves 16 per cent growth in 2001

Mashreqbank reported in the first week of February, a group net profit of Dh405.7 million for the year ended 31 December 1991, an increase of 16 per cent over the previous year.

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By  Massoud Derhally Published  February 6, 2002

Mashreqbank reported in the first week of February, a group net profit of Dh405.7 million for the year ended 31 December 1991, an increase of 16 per cent over the previous year.

Addressing a press conference at Mashreqbank’s head office in Dubai yesterday (2 February) CEO Abdul Aziz Al Ghurair said, “Despite the worldwide economy bordering on recession and the down turn in confidence in the latter part of the year, Mashreqbank did well in 2001. We have maintained the course we set ourselves a few years ago of consolidating our diversified business portfolios and delivery infrastructure. This strategy has resulted in superior results for the year and a most satisfying outcome for our key stakeholders.”

The bank’s Net Interest Income improved by four per cent to Dh634.5 million. Fee and other income rose by 10.7 per cent and gross revenue by 6.7 per cent to Dhs1,139.8 million. After remaining flat for the three consecutive years, costs rose by a modest 2.8 per cent. Efficiency ratio improved to 41.9 per cent and fee income to gross income ratio remained healthy at 44.3 per cent. “With improved profitability and a stronger balance sheet, all key performance indicators including profitability, liquidity, and capital adequacy ratios have shown further improvement,” added Al Ghurair.

Total assets at Dh22.7 billion showed a modest growth. The bank’s liquid assets to total assets ratio strengthened to 48.4 per cent and its advances to customer deposits ratio further improved to 64.9 per cent. Equity to total assets ratio moved up to 12.4 per cent and capital adequacy ratio improved to 19 per cent.

The earnings per share increased from Dhs48.9 to Dhs56.6 and proposed shareholders’ dividend was 30 per cent compared to 22 per cent in 2000.

On the retail banking side, the bank introduced advanced Internet and mobile banking delivery channels and the core product range from consumer loans to credit cards has been revamped.

In the commercial banking area, emphasis remained on non-credit, fee-based income products, and new fee-based products were introduced.

It was also the third successive year of good growth for the correspondent banking division with a lot of trade finance products being offered to correspondent banks globally.

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