Mashreqbank reports 25% rise in net profits
Mashreqbank Saturday announced that the Group’s Net Profit has climbed 25 per cent in the first half of 2004 compared to the corresponding period in 2003, while its Assets soared 33.9 per cent.
In the first six months of 2004, the Group generated an Operating Income of Dh789 Million compared to Dh674 Million in the first half of 2003. Growth in Non-Interest Income at 26% exceeded the Net Interest Income growth of 9.5% improving Other Income to Operating Income ratio from 45% to 49%.
On the other hand, slower growth in expenses at 9% as compared to 17% of Operating Income helped to achieve improved Cost Income ratio of 36% as compared to 39% last year. The Net Profit jumped by 25% to Dh338 Million as compared to Dh270 Million for the same period in 2003. Total Assets stood at Dh29.85 Billion on 30 June 2004 against Dh22.28 Billion a year earlier.
Earnings per share for the first six months grew to Dh4.29.
Mashreqbank’s CEO, Abdul-Aziz Al-Ghurair said “Our strategy of providing value-added services and diversification of our income streams is now paying dividends. Our customer centric focus and approach to the business, which also entailed significant investments in technology and marketing, has clearly been working for us. These are investments that will continue to underpin our results for years to come.”
In January 2004 Mashreqbank launched the first fully enabled chip card in the Middle East and Asia region, opening up revolutionary loyalty and rewards opportunities, at the same time as upgrading all its merchants’ POS card reading machines, at an investment of Dh25 million.
To enhance customer convenience the bank also introduced e-statements which enables account holders to obtain all their bank and credit card statements by e-mail, with no delays, no loss in mail, and at no cost.
Abdul-Aziz Al-Ghurair is confident that the second half of 2004 will see sustained growth in the economy. “Significant long-term developments such as the DIFC and the Burj Dubai and Dubailand projects will further fuel the UAE’s already robust economy coupled with a forecast for stable and relatively high oil price, there are tremendous opportunities for business growth across all sectors. And when businesses do well, so do the banks that support them,” Abdul-Aziz Al-Ghurair said.
“Being one of the oldest banks in the UAE we have been intimately involved in the growth of the country since the earliest days of its rapid development. We are delighted to continue to play our part in developing the prosperity of the nation for the future generations,” he added. (menareport.com)
© 2004 Mena Report (www.menareport.com)