Mashreq declares a net profit of AED 1.9 Billion for 2016

Dubai, UAE; 25^th January 2017

Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the year ending 31^st December 2016.

Key highlights [2016 vs 2015]:

Stable growth in Operating Income

• Operating Income up 3.2% year-on-year to AED 6.2 billion driven by strong growth in Net Interest Income & Net Income from Islamic Products

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• Net Interest Income & Net Income from Islamic Products up by 4.2% year-on-year, on the back of a 1.4% y-o-y increase in loan volume
• Net profit for full year 2016 stood at AED 1.9 billion

Consistently high proportion of net fee and commission income

• Mashreq’s best-in-class Net Fee, Commission, Investment and Other Income to operating income ratio remained high at 42.2%
• Net Fee, Commission & Other income increased by 1.8% year on year

Strong balance sheet

• Total Assets increased by 6.6% in the year to reach AED 122.8 billion; Customer Deposits increased by 4.6% to reach AED 77.0 billion
• Loan-to-Deposit ratio remained robust at 79.2% at the end of December 2016

Healthy liquidity and capital position

• Liquid Assets to Total Assets stood at 30.4% with Cash and Due from Banks at AED 37.3 billion
• Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.9% and 16.0% respectively

Stemmed the decline in asset quality

• Non-Performing Loans to Gross Loans ratio decreased to 3.1% at the end of December 2016 (3.6% as of September 2016).
• The risk charge for the year increased from AED 1.0 billion to AED 1.7 billion and Total Provisions for Loans and advances reached AED 3.3 billion, constituting 151.1% coverage for Non-Performing Loans

Mashreq delivered stable financial results for the year ending December 2016, reporting a net profit of AED 1.9 billion. Earnings per share are strong at AED 10.85 as of December 2016.

Read the full release here.

-Ends-

For media enquiries, please contact: 
Huda Ismail      
Public Relations, Mashreq 
Tel: 04 –6083629 
Email: [email protected]

Nssrin Khalil
Public Relations, Mashreq
Tel: 04 – 6083836
Email: [email protected]

For investor relations enquiries, please contact:
Ali Zaigham Agha                                           
Investor Relations, Mashreq                           
Tel: 04 –2077543                                           
Email: [email protected]

© Press Release 2017