Posted on October 27, 2015

Mashreq, one of the leading financial institutions in the UAE, today has reported its financial results for the period ending 30th September 2015 (9M 2015).

Key highlights [9M 2015 v s 9M 2014]:

  • Stable growth in Operating Income and Net Profit
    • Net profit for the 9 months of 2015 increased by 5.1% year-on-year to AED 1.8 billion
    • Operating Income up 3.0% year-on-year to AED 4.5 billion driven by strong growth in Net Interest Income
    • Net Interest Income up by 10% year-on-year, on the back of a 1.9% y-o-y increase in loan volume
  • Consistently high proportion of net fee and commission income
    • Mashreq’s best-in-class Net Fee, Commission, Investment and Other Income to operating income ratio remained high at 45.1%
    • Net Fee and Commission income increased by  1.1% year on year
  • Strong balance sheet (9M 2015 vs YE 2014)
    • Total Assets increased by 5.2% in the year to reach AED 111.4 billion; Customer Deposits increased by 6.7% to reach AED 73.1 billion
    • Loan-to-Deposit ratio remained robust at 79.9% at the end of September 2015
  • Healthy liquidity and capital position
    • Liquid Assets to Total Assets stood at 28.1% with Cash and Due from Banks at AED 31.2 billion
    • Capital adequacy ratio and Tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 16.7% and 15.6% respectively
  • Sustained asset quality
    • Non-Performing Loans to Gross Loans ratio decreased to 2.9% at the end of September 2015.
    • Total Provisions for Loans and advances reached AED 3.1 billion, constituting 148.0% coverage for Non-Performing Loans

Mashreq delivered stable financial results for the 9 months ending September 2015, reporting a net profit of AED 1.8 billion, an increase of 5.1% as compared to the 9 months of 2014. Earnings per share strengthened to AED 10.40 at the end of September 2015 compared to AED 9.90 a year earlier.

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Mashreq's CEO, AbdulAziz Al Ghurair (pictured), said: “I am pleased to announce a 5.1% growth in net profit for the first three quarters of 2015 compared to last year, as we continue to pursue a path of balanced growth. I believe that in these times of uncertainty in the global economy as well as the visible volatility in the markets, balancing the enterprise objectives of growth vs financial prudence is of paramount importance. It is this balanced approach that has led to a decrease in the ratio of Non-Performing Loans to Gross Loans to only 2.9% at the end of September 2015. Not only that, the bank has increased its NPL coverage to an unparalleled 148%.”

“Our ruthlessly focused effort to deliver increased customer satisfaction has resulted in maximizing the opportunities thrown up by the changing market conditions. Mashreq has maintained a steady growth rate by concentrating on elevating its customers’ experience and by placing innovation at the heart of all its operations.”

Al Ghurair continued, “Looking at the wider economy, the rest of 2015 looks stable for banking as the region’s non-oil sectors continue to grow and expand. The UAE remains a strong and stable economy and I know that our ongoing commitment to delivering value to our clients will enable Mashreq to continue to succeed in being their most preferred bank.”

Operating Income

  • Total operating income for 9M 2015 was AED 4.5 billion, a year-on-year increase of 3.0% compared to 9M 2014 operating income of AED 4.3 billion.
  • Net Interest Income at AED 2.5 billion was up by 10.0% compared to 9M 2014, driven by 1.9% year-on-year increase in loan volume. There has been an improvement in net interest margin from 3.09% in 1H 2015 to 3.13% for the 9M 2015. On a quarterly basis, Net Interest Income increased moderately by 0.8% to AED 826 million in 3Q 2015 as compared to AED 820 million in 2Q 2015.
  • Net fee and commission increased slightly by 1.1% year-on-year (9M 2015 vs 9M 2014) to reach AED 1.3 billion. Net fee and commission income represented 64.6% of total non-interest income in 9M 2015 as compared to 61.1% in 9M 2014.

Operating expenses increased by 13.0% year-on-year but decreased by 1.9% quarter-on-quarter to reach AED 1.8 billion; Efficiency Ratio at 40.9% in 3Q 2015 remained stable with respect to last quarter.

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Assets and Asset quality

  • Mashreq’s Total Assets increased by 5.2% to reach AED 111.4 billion in 9M 2015, compared to AED 105.8 billion at the end of 2014. Loans and Advances decreased by 0.1% in the quarter to end at AED 58.4 billion, a slight increase from AED 58.0 billion at the end of December 2014. On a year-on-year basis, Loans and Advances grew by 1.9% driven by 12.4% growth in Islamic finance. Liquid Assets to Total Assets stood at 28.1% with Cash and Due from Banks at AED 31.2 billion as of September 2015. Loan-to-Total Assets Ratio at 52.4% fell slightly as compared to 54.8% at the end of 2014 (52.1% in June 2015).
  • Customer Deposits at AED 73.1 billion, increased by 6.7% as compared to December 2014, driven by 80.2% growth in Islamic deposits and 0.7% growth in conventional deposits. Loan-to-Deposit ratio stood at 79.9% vs 84.8% in December 2014. On a year-on-year basis, customer deposits grew by 9.3% from AED 66.8 billion in September 2014 driven by Islamic deposits.
  • Non-Performing Loans reduced to AED 2.2 billion in September 2015 leading to a Non-Performing Loans to Gross Loans ratio of 2.9% at the end of September 2015 (3.7% in June 2015). Net Allowances for impairment for 9M 2015 was AED 682.1 million as compared to AED 860.0 million in 9M 2014. Total Provisions for Loans and advances reached AED 3.1 billion, constituting 148.0% coverage for Non-Performing Loans as on September 2015. 

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Capital and Liquidity

  • Mashreq’s Capital adequacy ratio stood at 16.7% (regulatory minimum of 12%) as of September 2015 compared to 16.5% as at 30 June 2015. Tier 1 capital ratio at 15.6% continues to be significantly higher than the 8.0% regulatory minimum stipulated by the UAE Central Bank (15.2% as at 30 June 2015)

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Operational Update:

Mashreq Qatar continues to provide customers with the most rewarding and award winning banking experiences: Mashreq opened its new state-of-the-art e-cube branch and head office at C-Ring road that offers new age banking services using interactive electronic devices.

In the Personal Banking space Mashreq became the first bank in Qatar to introduce the loan-to-remit bundle in 28 currencies, where customers can transfer their personal loan to their home country with best-in-Qatar foreign currency rates. The upgraded Majestic bundle, gives customers a guaranteed iPad Air when they obtain a loan, credit card and overdraft. Platinum Card customers and enjoy the comforts of the Al Maha and Oryx Lounge Doha International Airport when they travel and avail discounts of up to 30% from over 170 leading stores, restaurants, 5 star hotels, spas, clinics and beauty salons in Qatar. Mashreq also introduced 0% Easy Payment Plans for school fees, and purchases at leading outlets like Sharaf DG, Joyalukkas, Malabargold. The Salaam points program is extended to more than 35 outlets in Qatar and Mashreq Flavour discounts offered in over 2,500 restaurants in UAE, Qatar, Bahrain, Egypt and India.

Mashreq Qatar introduced the revolutionary DreamSaver account, a unique new product that can be opened online and automatically helps customers save towards a pre-defined goal.

For its affluent customers, Mashreq Gold priority banking introduced the International Wealth Builder product and the Sweep account, which is the only account in Qatar that automatically pulls funds from an interest bearing savings account in case there are not sufficient funds to encash a cheque written on a current account. Mashreq Gold customers can enjoy new features like opening advanced fixed deposits online, and secured overdrafts in international currencies

Mashreq Qatar’s Business Banking customers can choose from a range of current account options that enable customers to choose a customized account type to suit their Business needs. To facilitate business banking customers, automated intimation of legal documents expiry, and due dates on their facilities through SMS has also been introduced. 

Mashreq Qatar Corporate Banking continues to strive for excellence in Origination, Innovation and efficiency of Execution, in order to give our Corporate client base the best possible solutions in Trade Finance, Commercial Real Estate solutions, Corporate Finance, Contractor Financing, Treasury Risk Management and Transaction Banking . The strengths of Mashreq’s dedicated team , innovative corporate finance solutions and efficient execution have been Mashreq’s strengths as it continues on the growth trajectory for 2016 and beyond.


For a spectacular seventh year in a row, Mashreq has been named “Best Digital Bank in Qatar” by Global Finance. In addition to this, Global Banking & Finance Review has recognized Mashreq as “Best Retail Bank in Qatar”, “Best Corporate Bank in Qatar” and “Best Customer Service Bank in Qatar” in 2015.


MasterCard Innovation Forum 2015

Most Innovative Consumer Marketing Campaign’ in the Middle East & Africa

Dubai Chambers – CSR Label (Winner for 5 years in a row)

EMEA Finance Awards Treasury Services Awards 2015

Best cash management services in the Middle East

Best factoring services in the Middle East

Global Finance Awards (World’s Best Consumer Digital Banks in The Middle East and Africa) 2015

Country Winners category: Best Consumer Digital Bank in Qatar - Mashreq

Regional Sub-category winners: Best Integrated Consumer Bank – Mashreq UAE

Gallup Great Workplace Award (2nd time winner)

Finance Monthly M&A Awards 2015

Trade Finance Firm of the year UAE

Banker ME Industry Awards 2015

Best Regional Retail Bank

Best Private Bank - UAE

Best Branding GCC

Best Real Estate Financing

Annual Insight Middle East Call Centre Awards 2015

Best Customer Care

Best Customer Experience Management

Best in CRM Management

Best Service to Sales

Best VOC Implementation in Large Organization

Smart Card & Payments Awards, Middle East 2015

Best Premium Card 

Best Credit Card – Mashreq sMiles 

Best Debit Card - Mashreq Private Banking VISA Infinite

Retail Banker International Awards 2015

Middle East Retail Bank of the year 2015

Islamic Finance News 2015

Best Islamic Deal of The Year Award’ in Qatar

Global Banking & Finance Review Awards 2015

Best Corporate Bank Qatar 2015

Best Retail Bank Qatar 2015

Best Customer Service Bank Qatar 2015

Best Retail Bank UAE 2015

Most Innovative Banking Initiative (imashreq) UAE 2015

Innovative Islamic Banking Solutions Provider UAE 2015

Arab Organization for Social Responsibility Award 2015

Corporate Social Responsibility Award

Banker Middle East Product Awards 2015

Best Premium Banking Service

Best Mobile Banking Service

Best Real Estate Advisory

Best Self Employed Finance

Best Debit Card

Best SME Exchange Service

Super brands 2015

Global Finance

Best Regional Debt Bank in the Middle East 2015

Best Investment Bank in the UAE 2015

MENA Fund Manager Awards

Best Fixed Income fund in a 3 year category

Sharia’h Compliant Fixed Income fund of the year

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