Mashreq Reports 57% Q1 Profit Jump

Mashreq, Dubai’s third-biggest lender by market value, on Tuesday reported a 57 per cent jump in first-quarter net profit as a result of higher operating income.

The lender made a net profit of Dhs425.3 million ($115.8 million) in the three months to March 31, it said in a statement, an increase on the Dhs270.8 million recorded for the corresponding period in 2012.

Total operating income advanced 19.2 per cent year-on-year, driven by a 10.5 per cent hike in net interest income and a 26.9 per cent rise in net fee and commission income.

The bank made impairments worth Dhs170.7 million in the first quarter, down 2.8 per cent from the Dhs175.6 million set aside for bad loans in the same period of 2012.

Loans and advances at the end of March were 3.2 per cent up on the end of 2012, while deposits over the same period grew 3.6 per cent.

Mashreq’s chief executive, Abdulaziz Al Ghurair, said in February he was “optimistic” about the bank’s performance this year and expects profits to grow by between 10-15 per cent, with provisions continuing to recede