Mashreqbank posts 15 percent Profit growth in first quarter

Total Assets rose by 2.48 per cent, while Shareholders Funds showed an impressive improvement of 13 per cent.

The Bank's net interest income increased by 11 per cent to a sum of Dh183.06 million, commission income went up by 3.5 per cent and fees and other income increased by five per cent contributing to a growth of 8% in gross income totalling Dh 346.6 milliom.

"Despite the strained regional political and economic climate, these results indicate that Mashreqbank's performance and growth remain undeterred," said Abdul Aziz Al Ghurair, CEO of Mashreqbank.

During March 2003 an extraordinary general meeting of Mashreqbank share holders decided to split face value of its share, from Dh100 to Dh10. Accordingly, effective April 5 the number of Mashreqbank shares listed on Dubai Financial Market went up from 7.158 million to 71.586 million shares. The move will increase the liquidity of Mashreqbank shares ten-fold.

During the first quarter which ended on 31 March 2003, the Bank initiated a number of novel projects and many customer related promotions. With the opening of its new state-of-the-art branch on Dubai's posh commercial street Sheikh Zayed Road, the Bank's total number of branches in the UAE rose to 33.

The Bank continued to focus on introducing various capital guaranteed investment products to suit different investor styles. These included High Coupon Festival, Libor Select and MashreqStar. The feedback from customers has been very positive with very impressive results.

During the first quarter, Mashreqbank closed a major financing deal for the Ajman wastewater project which will become a prototype for future Gulf infrastructure projects. The Bank also participated in financing two Emirates Airlines aircrafts with some other leading banks.

"We are committed to continue putting our customers at the centre of all what we do. We will continue to provide them with value added services and products. With an increasing number of indicators now pointing towards renewed growth, Mashreqbank foresees another optimistic year," concluded Mr. Al-Ghurair.