Mashreqbank profit jumps by 18 per cent in first half of 2003

Operating Income, comprising Interest Income, Commission and Fee Income, increased by 11.3 per cent. Earnings per share for the six-month period increased to Dh3.78 against Dh3.19 for the corresponding period in 2002.

The bank's Total Assets increased 7 per cent compared to a year earlier. During the same period, Advances to customers increased by 26 per cent, Customer Deposits rose 8 per cent and Shareholders Funds by 14 per cent.

Expressing satisfaction with the interim results, Mashreqbank CEO, Abdul-Aziz Al-Ghurair attributed the impressive performance to excellent teamwork, a rigorous implementation of the bank's proven business strategies and continuous customer focus initiaves.

Reiterating the Bank's commitment to continuously upgrade its products, services and delivery channels, Al Ghurair pointed out that during the first half of the year the Bank opened a new state-of-the art branch on Sheikh Zayed Road and was the first in the Middle East to launch a cutting edge Interactive Voice Recognition (IVR) system which is a user-friendly remote banking facility.

On the retail-banking front, Mashreqbank established a unique tie-up with Lufthansa 'Miles & More' to enable the bank's cardholders to redeem MasherqPoints for air miles and other travel related services. It has also introduced 'Samsung Mashreqbank,' a co-branded credit card with a unique rewards programme.

Responding to the downturn in interest rates, Mashreqbank issued a total of 35 different investment products in the first six months which met with great success and are reaping substantial returns for their investors.

In Corporate banking, Mashreqbank recently tied up with Mizuho Corporate Bank Ltd. of Japan to create a "Japan Desk" within Mashreqbank. This will enable Mizuho to make use of Mashreqbank's strengths in Trade Finance in the Middle East, as well as providing a significantly improved quality of service and convenience to Japanese companies doing business in the region.

Mashreqbank also launched Cash Management, a fully integrated back office service for corporate clients that incorporates document pick up, Internet enquiries and transactions, cash pick up and delivery and a differentiated cheque clearing system which automates clients' reconciliation.

In cooperation with the Ministry of Finance, Mashreqbank also played a pioneering role in introducing a new Smart Card procedure to streamline the issuing of UAE residence visas. Issuing labour guarantees lodged with the Ministry of Labour digitally requires far less time and paperwork and further ensures the rights of employees as well as tighter regulatory control.

Continuing its commitment to Emiratisation, Mashreqbank introduced a new half-day working initiative aiming at providing nationals, mainly students, with valuable on-the-job work experience and an income while they continue with their studies.

Also aimed at encouraging work in the private sector, the bank's Summer Learnings programme, now in its sixth year, was once again fully subscribed by National students eager to learn about career opportunities in a wide variety of industries.

Abdul Aziz Al Ghurair is confident that 2003 will be a good year for UAE banks in general and Mashreqbank in particular. "The year will produce good results as the UAE economy is doing well and there are numerous new business opportunities opening up. Construction, real estate, tourism and trade are doing particularly well and there is improved business confidence since the Iraq situation has stabilised," Al Ghurair concluded.