DOHA: Mashreq, one of the UAE’s leading financial institutions, has reported a 35 percent increase in its net profit for the first nine months ended September 30, 2014, climbing to Dh1.76bn (about $480m) compared to Dh1.30bn (about $354m) for the corresponding period in 2013, according to a press statement released yesterday.
The bank’s total operating income for the period grew to Dh4.3bn, an increase of 24 percent compared to a year earlier, driven by both net interest income and net fee and commission income.
The bank’s net interest income at the end of September 2014 was up by 33 percent compared to a year earlier, driven by 18 percent year-on-year increase in loan volume and 27 bps improvement in net interest margin from 2.91 percent in September 2013 to 3.18 percent this year, which was predominantly a function of a change in balance sheet structure.
Mashreq’s best-in-class net fee, commission and other income to operating income ratio remained high at 48.6 percent led by 18 percent growth in net fee and commission income and 38 percent growth in investment income as compared to September 2013. General and administrative expenses for the period increased by 7 percent compared to a year earlier to reach AED1.6bn; however Mashreq’s efficiency ratio improved from 43 percent in September 2013 to reach 37.3 percent at the end of September 2014.
The Peninsula
