Mashreqbank profits up 25 percent
Mashreqbank recorded a 25 percent net profit increase in 2002, reaching 504.9 million Emirati dirhams ($137.4 million). Earnings per share improved significantly from Dh 56.6 in 2001 to Dh 70.5 last year.
This result further builds on the bank's 16 percent increase in 2001. The group's total assets increased by four percent in 2002, reaching Dh 23.7 billion. Advances to targeted segments, wholesale and retail, increased by 20 percent to reach Dh 12.6 billion, compared to Dh 10.5 billion in the previous year.
Customer deposits increased by around four percent and the bank's advances to customer deposits ratio was optimized at 75 percent against 65 percent in 2001. Liquidity remained very comfortable with liquid assets to total assets ratio of 42 percent. The group's equity to total assets ratio improved from 12.4 percent to 13.4 percent.
The bank's gross income reached a record level of Dh 1.2 billion, a growth of 8.4 percent over last year. The commission income went up by 24.4 percent and net interest income grew by 6.4 percent. A substantial increase in business volumes was largely supported by overall productivity improvements leading to a marginal increase of 4 percent in operating expenses.
During the year, the total number of branches in the United Arab Emirates (UAE) reached 33 with the opening of new branches in Abu Dhabi's Mussafah industrial area and in Dubai. Internationally, the group's strategy has focused more on neighboring Arab states. This saw a second branch open in Qatar and involvement in a number of major commercial and infrastructure projects across the region. — (menareport.com)
© 2003 Mena Report (www.menareport.com)