“Recording a net profit of AED 85 million during the first half of 2021, I believe we are fortunate to have been steered through the pandemic and its far-reaching impacts by a national leadership that has taken proactive measures to protect business interests, jobs and economic stability.
As regional and global markets adjust to the dynamics of a partially vaccinated world population and a fast-evolving virus, the near to mid-term-outlook remains uncertain. The extension of TESS to June 2022 reflects this reality. However, we remain cautiously optimistic that with the continued support of the UAE national government, a continued economic recovery and Mashreq’s ongoing digital transformation, the future looks promising.
Given the changing dynamics of the workplace, our operating model to ‘Work from Anywhere’ means the bank is well placed to leverage the full potential of its key technology platforms to offer a seamless experience to our customers. These attributes will ensure that we continue to generate solid returns for our shareholders and remain ahead of the existential change impacting our industry.”
Ahmed Abdelaal, Group CEO, Mashreq Bank, said: “Our focused strategy and advanced digital transformation program served Mashreq well throughout the first half of 2021. These fundamentals have ensured that the Bank’s financial strength remains robust throughout the period, as evidenced by our capital adequacy ratio of 14.0%, Tier 1 ratio of 12.8% and a liquid-to-total-assets ratio of 31.8%.
Additionally, our core businesses across retail banking, corporate and investment banking, and our international franchises remain strong. Loan growth has grown by 8% YTD, and we have seen strong performance across all segments. These results are in line with the broader economic recovery and are a testament to the efficacy of the bank’s deep customer relationships and customer-centric strategy.
The Bank also saw a YTD growth of 8.1% in customer deposits and a high share of CASA of over 57% which points towards growing confidence in the national economy. That confidence is tempered by a conservative risk policy, which in H1 contributed to a higher level of provisions but a reduction of 20 bps in our nonperforming loan (NPL) ratio.
Throughout the first half of the year, we continued to roll out our operating model and invest in our people. We released our inaugural Mashreq Sustainability Report which outlined our commitment to addressing key areas of environment, social and governance (ESG), where our contribution can make a meaningful impact. We have also seen an acceleration in the scale and complexity of our digital transformation from the branches to our partnerships with FinTechs, and going forward, we continue to invest in innovative, creative platforms that add value to our customers and shareholders.
I am also proud to announce that Mashreq was once again named the Best Digital Bank in Middle East by Euromoney in 2021. The achievement is our second consecutive win from the Euromoney Awards for Excellence and recognises our objectives of driving transformative change and improving the personalisation of the customer experience for all our stakeholders.”
Read the full report here.
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© Press Release 2021