Islamic Finance

UAE’s Mashreq’s Islamic financing, investment income up 25 pct Q3 2019, profit down 8 pct

BY Staff Writer

15 Oct 2019

News

Salaam Gateway

UAE’s Mashreq Bank reported on Monday a 24.7 per cent increase in Islamic financing and investment products income to 193.9 million dirhams ($52.8 million) for the three months ending September 30 versus the same period last year.

However, the bank's overall profit after tax dropped 8 per cent to 549.9 million dirhams as general and administrative expenses rose 6 per cent to 677.4 million dirhams, interest income slid 1.1 per cent to 1.4 billion dirhams, and interest expenses increased 10 per cent to 651.5 million dirhams.

Allowances for impairments improved, dropping 10 per cent to 223 million dirhams.

Mashreq offers conventional and Islamic banking products and services, with Mashreq Al Islami the Shariah-compliant division of the Group.

PROFIT UP FOR NINE-MONTH PERIOD

For the nine months ending September 30, Mashreq’s profit after tax rose 1.7 per cent to 1.8 billion dirhams compared to the same period last year, reported the bank in an exchange filing on Monday.

Income from Islamic financing and investment products increased by a substantial 42.4 per cent to 569.6 million dirhams from 399.9 million dirhams at the end of 2018.

Interest income gained a lower 9 per cent to 4.4 billion dirhams.

Allowances for impairments dropped 15.9 per cent to 704.8 million dirhams.

BALANCE SHEET

Total assets grew 5 per cent to 146.9 billion dirhams from December 31 through September 30.

Islamic financing and investment products grew a higher 10 per cent to 14.2 billion dirhams, accounting for 9.7 per cent of assets, up from 9.2 per cent at the end of 2018.

However, Islamic customers’ deposits dipped 6 per cent to 10 billion dirhams, making up 8 per cent of Mashreq’s total liabilities. This was down from 9 per cent at the end of 2018.

DIGITAL

CEO Abdul Aziz Al Ghurair said in a statement that Mashreq signed a tripartite agreement with Dubai International Financial Centre (DIFC) and RegTech company norbloc to launch a blockchain-based KYC data sharing consortium next year.

($1 = 3.6725 Emirati dirhams)

tags:

Earnings