Dubai - Mubasher: Mashreq Bank reported an 84% year-on-year (YoY) drop in its net profits to AED 85.4 million in the first half (H1) of 2021, compared to AED 535.1 million. 

The bank's interest income fell to AED 1.440 billion in the January-June period, compared to AED 1.499 billion in the same period in 2020, according to a statement to the Dubai Financial Market (DFM) on Wednesday. 

Impairment allowance grew to AED 1.5 billion in H1-21 from AED 978 million in H1-20, reflecting conservative provisioning policy.

Ahmed Abdelaal, Group CEO of Mashreq Bank, said: “Our focused strategy and advanced digital transformation program served Mashreq well throughout H1-21."

"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%," Abdelaal pointed out.

Over the course of 2020, the bank turned to net losses of AED 1.278 billion, against net profits of AED 2.065 billion a year earlier.