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Dubai’s Mashreqbank reported on Sunday a 4.6 percent third quarter net profit for 2018 of 587 million dirhams, compared to 561 million dirhams a year ago, representing a 4.6 percent quarterly increase.
Higher net profit was driven by non-interest income and lower provisioning. The bank’s total assets reached dirhams 137.4 billion ($37 billion), up 10 percent on the end of last year, but liabilities also increased and net equity dropped by 2.5 percent to 20.6 billion dirhams.
“We think the results are in line with the market consensus,” Wagih Sharaf of Beltone Financial Holding told Zawya.
“The name is not really very liquid, we believe it will hold at current levels,” Sharaf added.
Mashreqbank shares gained 2.87 percent on Monday, but traded volumes on the stock were low. The bank’s stock price now stands at 70 dirhams.
The rise in the bank’s shares helped Dubai’s index finish 0.44 percent higher on Monday. Exchange data showed that 13 stocks traded higher while 18 stocks dropped on DFM.
According to data from Eikon, two analysts have a “buy” rating on Mashreqbank. Its shares have traded largely flat since the start of the year on low volumes. Dubai Financial Market data shows that more than 70 percent of the company's shares remain in the hands of members of the Al Ghurair family, whose Al Ghurair Group set up the bank in 1967.
Earlier in October, the bank announced that it had reached a settlement with the New York State Department of Financial Services (DFS) in its anti-money laundering controls and gaps in its U.S. sanctions compliance programme. “Under the terms of the Consent Order, Mashreqbank has agreed to pay the DFS a total of USD 40 million as part of the settlement,” the statement to the exchange said. (Read more here)
In June, credit agency Fitch Ratings, affirmed Mashreqbank’s Long-Term Issuer Default Rating (IDR) at “A”, with a stable outlook. (Read more here)
Elsewhere in the region, Abu Dhabi’s index added 0.15 percent on Monday, Qatar’s index gained 1.18 percent, while Bahrain’s index ended mostly flat, Kuwait’s index dropped 0.42 percent, and Oman’s index ended mostly flat.
By 13:51 GST Saudi Arabia’s index was trading 3.05 percent lower, while Egypt’s index was up 0.4 percent.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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