Mashreq Group has announced first half year results with net profits reaching Dh1.17 billion, a growth of 22.6 per cent, as compared to Dh955.9m for the same period last year.
In the second quarter of 2008, Mashreq has posted a profit of Dh706.8m, which is 38.4 per cent higher than the same period last year, a bank statement said yesterday.
Total assets of the group reached Dh94bn, up 33.2 per cent from Dh70.6bn at end of June 2007. Customer deposits reached Dh52.6bn, representing an increase of 17 per cent over last year's deposits of Dh44.9bn, while customer advances have grown by 57.7 per cent, to Dh49.3bn from Dh31.2bn.
Mashreq's CEO Abdul Aziz Al Ghurair said: "The sustained performance reflects our on-going ability to cater to customers in all areas of our business dealings. This is done by providing them with innovative individual banking solutions that continually evolve and match their growing demands. For Mashreq to remain at the forefront of Middle Eastern banking we will be focused on opening access and opening opportunities for customers in all areas."
The growth in total assets contributed to a marked increase in net interest income, and income from Islamic products net of distribution to depositors at Dh895.7m, compared to Dh 536.8m for the same period last year, registering a growth of 66.8 per cent.
Net fee, commission and other income also recorded an impressive growth of 44.4 per cent over last year. However, investment income reduced from Dh497m to Dh287m mainly due to the widening of credit spreads and poor liquidity in the global and regional markets.
"Mashreq continues to invest in human resources, infrastructure development and technology. This has resulted in the expenses for the six months of 2008 being higher than same period last year by 32 per cent," the bank statement said.
Since the start of the year Mashreq opened seven new branches taking the total number of UAE outlets to 54.
Badr Al Islami, the Islamic arm of Mashreq opened two Badr Business outlets located at Al Riqa and Park Place. By the end of 2008, Mashreq plans to open 11 Badr Business centres to help cater to the growing demand for Islamic finance.