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15/Oct/2005
Gulfnews.com
The Mashreqbank Group is the latest to announce a record year in earnings and profit. Its net profit for the first three quarters of 2005 "soared 101 per cent" in comparison to the same period last year to more than Dh1 billion, 45 per cent more than the whole of 2004.
The banks earnings per share for the first nine months of 2005 also doubled, from Dh6.27 in 2004 to Dh12.60 this year.
To the end of September, Mashreqbank generated an operating income of Dh2.2 billion, compared to Dh1.2 billion in the first nine months of 2004.
During the period the banks non-interest income grew by 157.1 per cent. This has been a trend across the Middle East banking sector. Some analysts have seen this trend as a reflection of a deterioration in the quality of earnings reflecting investments in stocks, and one off gains, rather than growth in the banks core business.
Abdul Aziz Al Ghurair, CEO of Mashreqbank, sees the "the rapid increase in the banks non-interest income [as] a sign that our customers really appreciate our value-added services.
"Our strategy of investing in the latest technologies, like smart credit cards and sophisticated business management services, will continue to reap dividends well into the future."
According to the European Financial Management and Marketing Association (EFMA), Mashreq-banks cardholder base is growing by 65 per cent annually, exceeding the overall market average of 15 per cent.
During the first three quarters of 2005 Mashreq-bank opened a new branch in Mall of The Emirates, new Customer Service Centres at Madinat Zayed Mall in Abu Dhabi and Eppco Mankool in Bur Dubai, and has installed a further 25 ATMs across the country.
The banks Commercial Banking Business also fared well according to the company, particularly in construction and infrastructure projects. Foremost among these was the Dubai Rapid Link Consortium for the Dubai Metro Project, a high-tech rail transit system to span the emirate.
Other prominent projects include the Dewa L station Phase 2; the 65 storey Al Mas Tower in Jumairah Lake Towers and the Ras Laffan "B" water pipeline in Doha, Qatar.
The banks Japan Desk division also staged the third Mashreqbank-Mizuho Middle East seminar on investment opportunities in the region, attended by leading Japanese companies from across the Middle East. Under the umbrella of the Makaseb Funds Company, Mashreq-bank launched three mutual funds during 2005.
Al Ghurair expressed confidence in the continued growth of the economy into next year and beyond.
"The soaring economy is seeing growth across all sectors.
"Underpinned by higher oil prices, the construction boom, buoyant stock exchanges and the massive influx of investment capital, this is driving growth in both the commercial and retail banking sectors," he said.
During the period, the banks assets climbed 33.6 per cent to Dh42.1 billion and customer deposits increased by 21.7 per cent.
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