Dubai based Mashreq’s third quarter net profit slipped slightly as lending conditions remain tight and the bank tries to keep costs down.
Mashreq made a net profit of $52.94 million in the 3 months to September 30, a fall of 3 percent over the same period last year, according to Reuters calculations.
Reuters calculated quarterly figures from previous financial reports. Mashreq’s net profit for the first half of 2010 was $123.3 million, growing to $176.2 million at the end of September, the lender said in a statement. Third-quarter profit in 2009 was $54.5 million.
Abdul Aziz Al Ghurair, the CEO of Mashreq, in a statement said: “We have seen stability and growth in Q3 2010 in general, and the bank’s current position is ensuring that we remain optimistic of further growth in the coming period.”
Provisions stood at $326.7 million at the end of the third quarter, the statement said, a decline of 12.3 percent from $375.7 million for the same period in 2009.
Loans and advances in the 9 month period to September 30 fell 9.4 percent the statement said, indicating that bank lending remains tight. Customer deposits dropped 8.2 percent in the same period, the statement said.
The bank’s net interest income and income from Islamic products increased by 10.3 percent in the first nine months of the year, the statement said, and could be an area which sees more growth in the future.
The UAE banking sector is heavily exposed to indebted state conglomerate Dubai World, with estimates of potential exposure ranging up to $15 billion, the majority believed to be held by Dubai banks, including Mashreq. (Reuters)
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