Mashreq Reports 60% Jump In 2012 Net Profit

Dubai-based Mashreq reported a net profit of Dhs1.3 billion for 2012, a massive 60 per cent increase compared to 2011. The bank’s operating income also rose 5.5 per cent year-on-year to Dhs4.1 billion, it said in a statement.

The lender attributed the rise in profit to increased fee income and investment income. Net fee and commission income grew 20.8 per cent in 2012, compared to 2011, while investment income rose 131.6 per cent.

The bank’s operating income in the fourth quarter reached Dhs1.1 billion, up 29.4 per cent compared to Q4 2011, it said in the statement.

Abdul-Aziz Al Ghurair, CEO of Mashreq commented: “2012 has been a watershed year, both for the UAE economy at large and the bank. Mashreq has made an impressive showing on all the essential performance parameters – operating income, net profit and in the reduction of provisions.

“I believe that the UAE banking industry is poised for a strong comeback from the rough patch that it passed through in the recent past.”

The bank’s loans and advances grew by 9.9 per cent in 2012 to reach Dhs41.4 billion, while provisions decreased by 31 per cent and stood at Dhs826 million at year-end 2012. It recorded a 4.5 per cent rise in customer deposits, reaching Dhs47.5 billion.

General and administrative expenses increased by 3.4 per cent year-on-year to reach Dhs1.9 billion.

The lender’s total assets declined 3.6 per cent compared to 2011 to reach Dhs76.4 billion.

Mashreq’s board has proposed a cash dividend of 38 per cent, subject to central bank and shareholder approval.

Most banks in the UAE have recorded strong performances for 2012: National Bank of Abu Dhabi saw a 16.8 per cent rise in 2012 profit while Emirates NBD’s 2012 net profit grew three per cent last year.