Mashreqbank first half Net Income soars 100 pc
Mashreqbank Group announced that the its Net Income for the first half of 2005 climbed 100.13 per cent to reach Dh676.6 million as compared to Dh338.1 million for the corresponding period in 2004.
The Group generated a Total Operating Income of over Dh1.5 billion, compared to Dh789.2 million in the first two quarters of 2004.
As at June 2005, the banking group’s Total Assets grew a healthy 23.1 per cent to Dh36.7 billion, compared to Dh29.8 billion a year earlier.
Mashreqbank CEO Abdul Aziz Al Ghurair said the bank’s continuing strong performance reflects the UAE’s buoyant economy and the bank’s commitment to service excellence.
While the banking group’s Net Interest Income grew 18.2 per cent and its Commission and other Income grew 175 per cent.
Enhanced administrative efficiencies saw a slower growth in expenses at 16.7 per cent, which helped to achieve an improved Cost to Income ratio, as compared the previous year.
Earnings per share for the first six months grew to Dh 7.81 as compared to Dh 3.9 for the same period last year. Abdul-Aziz Al-Ghurair added: “Our focus over the past five years of diversifying of our income streams by providing value-added services has required significant investments in technology, upgrading our systems, training and marketing. These investments are now reaping dividends that will continue to underpin our results in the long term.”
During the first half of the year Mashreqbank established a dedicated, fully regulated investment company called Makaseb Funds Company BSC (C) to offer the public mutual funds investment products in the GCC’s buoyant stock markets.
The bank continued to enhance its Home Loan mortgage products and services, extending its range to include Market Value Funding, which enables customers to release equity from fully paid for properties, as well signing mortgage facility agreements with an expanding number of property developers. To cope with the demand it has also established a dedicated Home Loan Centre at its Jumairah Beach Road branch.
Mashreqbank launched the region’s first black platinum credit card and also the first Unfixed Deposit product, allowing savers to enjoy higher rates of returns in comparison to fixed deposits, at the same time as retaining liquidity.
In March 2005, the bank successfully issued US$325 million (Dh1,194 million) Euro Medium Term Note maturing in 2010. This was the second tranche of the US$750 million (Dh2,754.8 million) EMTN launched last year.
Among its many commercial banking projects Mashreqbank, along with two other local banks, signed an agreement to provide project finance for the contractor chosen to construct the Burj Dubai, Emaar’s iconic tower which will become the world’s tallest building.
Abdul-Aziz Al-Ghurair said the UAE and Qatar economies remained very healthy and will see sustained growth continuing in the second half of the year. “This autumn will see several new laws and regulations issued in the UAE that will add greater confidence in the market. These will lead to further opportunities for business growth across a wide variety of existing and new sectors. As one of the oldest banks in the country, we are delighted to continue playing our part in developing the prosperity of the nation,” he concluded.