Mashreq's net profit plunged 25 per cent in the third quarter, as the bank became the latest to suffer from rising impairments.
The fourth largest bank in Dubai in terms of assets announced a net profit attributable to shareholders of Dh414.95 million for the three months to the end of September, compared with Dh551.44m for the same period last year.
Impairments for bad loans rose 82 per cent year-on-year to Dh470.09m during the third quarter, as the bank’s non-performing loans to gross loans ratio rose to 3.6 per cent from 2.9 per cent last year.
The increase in impairment charges largely negated a 4.1 per cent increase in net interest income and income from Islamic products for the quarter, and a 3.7 per cent rise in operating expenses.
“We remain committed to continuously raising the bar and doing what is right for the long-term growth of the bank,” said Mashreq’s chief executive Abdul Aziz Al Ghurair.
“I am confident we are going to finish 2016 on a relatively strong note and will be well poised and ready to take advantage of the multiple growth opportunities in 2017.”
Mashreq shares, listed on the Dubai stock exchange, have lost 20.7 per cent of their value so far this year, against a 6.4 per cent gain by Dubai’s headline index. Mashreq shares were suspended from trading on Sunday.
jeverington@thenational.ae
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