Mashreq, one of the leading financial institutions in the UAE, has reported a net profit of Dh450 million ($122 million) for the first quarter despite strong headwinds like steep decline in interest rates and impact of the Covid-19 crisis.

 

Announcing its financial results for the first quarter ending March 31, the Dubai bank said its operating Income stood at Dh1.5 billion ($408 million), slight decline compared to last year.

 

Mashreq’s best-in-class non-interest income to operating income ratio increased to 48.7% vs 40.4% in 1Q 2019, while it registered a significant growth in investment income (Dh127 million in 1Q vs Dh48 million in 1Q 2019)

 

Liquid Assets ratio stood at 31.8% with cash and due from banks hitting Dh46.2 billion as on March 31, 2020, it added.

 

According to Mashreq, the total assets grew by 2% to Dh162.6 billion while loans and advances increased by 2.8% to Dh78.3 billion as compared to last December.

 

On the Q1 performance, Group CEO Ahmed Abdelaal said: "These are difficult times for the whole world and despite a tough operating environment, Mashreq continued its positive growth trajectory in 1Q 2020."

 

"We achieved a respectable Dh450 million in net profit for the first quarter despite strong headwinds like steep decline in interest rates and impact of the Covid-19 crisis. Our revenue has also remained stable with our loans and advances growing by almost 3% in the first quarter of 2020," he stated.

 

Abdelaal pointed out that its best-in-class non-interest income to operating income ratio increased to 48.7%, compared to 40.4% over the same period last year. 

 

Furthermore, Mashreq also continued to show robust liquidity with a liquid assets ratio of 31.8%, he added.

 

Given the unprecedented situation we are facing now, we invoked several management actions during the quarter, aimed at ensuring the safety and security of all our stakeholders as well as supporting their financial well-being, said Abdelaal.

 

"Today, 97% of our workforce operate from home and continue to provide uninterrupted service to our customers, which is testament to our robust business continuity planning measures. In March, we also rolled out a substantial banking benefits package for all customers that have been impacted by the outbreak," he added.-TradeArabia News Service