As Mashreq reached the half way point in 2019, it reported that net profits for the first six months of the year was AED1.2 billion ($333 million), an increase of 5.2 percent compared to the same period last year.
For the whole of 2018, it saw profits rise just 0.4 percent, but the bank’s leader, CEO Abdul Aziz Al Ghurair, is confident the outlook for 2019 is looking much healthier.
“This year we expect the bank’s net profit to grow by around 10 to 12 percent compared to last year. This will largely be the result of a reduction in risk charge as well as prudent risk management,” he says.
Embracing digital
One of the highlights of the year was the bank reinforcing its position at the forefront of the digital revolution taking place across the sector.
In April, it unveiled its reimagined branch format and the move comes as retail banks in the region witness a significant shift in consumer habits.
“Today, 97 percent of Mashreq’s financial transactions are made through automated digital channels and 65 percent of inquiries are made online or via mobile – figures that underscore the efficacy of our digital strategy,” Al Ghurair says.
The new branch structure has not had a significant impact on the company’s workforce as staff have been transitioned to newer, more advanced roles.
“As part of our digital transformation we have devised several plans for our employees to train them for the jobs of the future – in essence, upskilling them to fill roles that we expect will be needed.
One such position at Mashreq Bank is that of a Universal Banker, who is a highly trained officer assisting customers and managing their end-to-end needs through digital devices,” Al Ghurair says.
“We are confident these changes will increase our productivity and lead to new, equally vital roles. But, more importantly, it will improve the customer experience. Overall, these initiatives will not only help simplify the business, they will enable our employees to focus on improving the customer experience through the efficiency, quality, and speed of processes.”
Mortgage momentum
Another recent innovative move announced by the bank was the launch of the new e-mortgage system in association with the Dubai Land Department.
The initiative is part of Mashreq’s ongoing efforts to increase automation and reduce paper transactions, as well as the number of physical visits to branches.
“We are confident that by using blockchain technology we can reduce the latter, in line with the ratios set by the government of Dubai for government entities.
Mashreq Bank is on course to use the new system to register mortgage contracts for those who applied to the service from DLD,” Al Ghurair says.
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