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Mashreq Bank's net profits down 80% in 9M

Mashreq Bank's net profits down 80% in 9M
The bank's total assets increased to AED 169.72bn
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Dubai – Mubasher: The net profits attributable to the owners of Mashreq Bank plunged by 80% to AED 352.024 million during the first nine months of 2020 from AED 1.757 billion in the prior-year period.

The sharp decline in the bank's net profits is attributed to higher impairment allowance coupled with lower operating income, according to the bank's consolidated interim financial results for the period ended on 30 September 2020.

The bank's net interest income and income from Islamic products declined by 25% to AED 2.06 billion in the January-September period of 2020 from AED 2.75 billion in the same period of 2019.

The bank's total assets increased to AED 169.72 billion as of 30 September 2020 from AED 159.43 billion as of 31 December 2019.

The earnings per share (EPS) stood at AED 1.98 in the first nine months of 2020, compared to AED 9.9 in the corresponding period of 2020.

During the third quarter (Q3) of 2020, the bank recorded net losses of AED 183.1 million, against AED 535.8 million in the same quarter of 2019.

The Chairman of Mashreq Bank,  AbdulAziz Al Ghurair, commented: "At Mashreq, we remain fully aligned to support the UAE economy and our communities, as we together pave the way to recovery."

The Group CEO of Mashreq Bank, Ahmed Abdelaal, noted: "Despite proactively managing the bank’s liquidity position and capital adequacy ratio, the continued market volatility, and uncertain economic climate has led to a 12% reduction in our operating income which is primarily due to the prevailing environment of low-interest rates."

It is noteworthy to mention that in the first half (H1) of 2020, the bank's net profits retreated by 56.2% to AED 535.131 million from AED 1.221 billion in the same half of the earlier year.