Mashreq reports H1 results achieving net profit of Dhs1.17bn

The second quarter of 2008 has seen Mashreq post a profit of 706.8m which is 38.4% higher than the same period last year. Total assets of the group reached Dhs94bn, up 33.2% from Dhs70.6bn at end of June 2007. Customer deposits reached Dhs52.6bn, representing an increase of 17% over last year's deposits of Dhs44.9bn, whilst customer advances have grown by 57.7%, to ADhs49.3bn from Dhs31.2bn.

Mashreq's CEO Abdul Aziz Al Ghurair stated:

"Our sustained performance reflects our on-going ability to cater to our customers in all areas of our business dealings. This is done by providing them with innovative individual banking solutions that continually evolve and match their growing demands. For Mashreq to remain at the forefront of Middle Eastern banking we will remain focused on opening access and opening opportunities for customers in all areas."

The growth in total assets contributed to a marked increase in net interest income, and income from Islamic products net of distribution to depositors at Dhs895.7m, compared to Dhs536.8m for the same period last year, registering a growth of 66.8%. Net Fee, Commission and other income also recorded an impressive growth of 44.4% over last year. However, investment income reduced from Dhs497m to Dhs287m mainly due to the widening of credit spreads and poor liquidity in the global and regional markets.

Mashreq continues to invest in human resources, infrastructure development and technology. This has resulted in the expenses for the six months of 2008 being higher than same period last year by 32%.

Since the start of the year Mashreq opened seven new branches taking the total number of UAE outlets to 54. Badr Al Islami, the Islamic arm of Mashreq opened two Badr Business outlets located at Al Riqa and Park Place. By the end of 2008 Mashreq plans to open a total of 11 Badr Business centres to help cater to the growing demand for Islamic finance.

Adding to Mashreq's growing product portfolio the company launched the new Etisalat Mashreq credit card to provide customers free redeemable talk time. Customers can now shop anywhere using the card and are awarded 'more' points which are then redeemed for free Etisalat mobile talk time.

Mashreq was also named the 'Best Bank in the UAE' for the fourth time by the 'Euromoney Excellence Middle East' awards. The selection was based on key criteria such as; transaction volume, market share, customer service, competitive pricing and innovative technologies. Capital Intelligence, the international rating agency also raised the long-term and financial strength ratings to A+ from A. The increased rating is due to Mashreq's continued strong financial performance, solid asset quality, and good liquidity, which are the principal rating drivers supporting the upgrade.