Mashreq net profit falls 24.8% in Q3
24 Oct 2016 - 3:51
DUBAI: Mashreq continued its earnings slump yesterday as Dubai’s third-biggest lender by assets posted a 24.8 percent fall in third-quarter net profit, weighed by putting aside more cash to cover for bad loans.
The lender made a net profit of 414.95 million dirhams ($112.98 million) in the three months to Sept. 30, it said in a statement, a decrease on the 551.44 million dirhams recorded for the corresponding period of 2015.
Mashreq, which had reported falling profits in the preceding four quarters, suffered in the latest quarter as allowances for impairments jumped by 82 percent over the period to reach 470 million dirhams.
Banks in the United Arab Emirates are facing a more difficult operating environment as the more-than-two-year collapse in oil prices feeds through into higher levels of soured loans and compressed net interest margins.
Net interest income from traditional banking operations rose 0.9 percent on the same three months of last year to 875 million dirhams, while net fee and commission income sank to 399 million dirhams, down 2.3 percent year on year, the statement said.