(MENAFN- Khaleej Times) The bank's total operating income during the year grew to Dh4.8 billion, showing an increase of 18.4 per cent compared to a year earlier
"Our annual financials reflect solid and sustainable growth. We are constantly innovating to give our customers what they need".." Mashreq's chief executive officer AbdulAziz Al Ghurair said in a statement
The bank's net interest income at the end of December 2013 was up by 23.9 per cent compared to a year earlier, driven by 21.8 per cent year-on-year increase in loan volume and 39 basis points improvement in net interest margin from 2.55 per cent in December 2012 to 2.94 per cent this year, which was predominantly led by change in balance sheet structure and composition of loans
"The banking industry as a whole has enjoyed a strong 2013 - which is good for the UAE. The banking industry is in a strong position and the performance of the banks can be used as a measure of wider economic performance, so a healthy banking industry is indicative of a healthy economy," Al Ghurair said
Mashreq's net fee, commission and other income to operating income ratio remained high at 51.3 per cent led by a 21.2 per cent growth in net fee and commission income and 23.2 per cent growth in Other Income
The bank's earnings per share strengthened to Dh10.68 at the end of December 2013 compared to Dh7.76 a year earlier
Asset quality continued to improve as non-performing loans [NPLs] to gross loans ratio reduced from 9.4 per cent in December 2012 to 6 per cent at the end of December 2013. Mashreq's allowances for impairment, net, for 2013, was Dh873 million, and total provisions for loans and advances reached Dh3.10 billion, constituting 97 per cent coverage for NPLs as on December 31, 2013
Mashreq's capital adequacy ratio and tier 1 capital ratio continue to be significantly higher than the regulatory limit and stood at 18.2 per cent and 16.4 per cent respectively, at the end of December 2013
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