Dubai's Mashreq bank net profit improves 41 percent

Dubai’s Mashreq bank net profit improves 41 percent

The lender made net profit of 286.3 million dirhams ($77.9 million) for the three months to end-June, compared with 202.6 million a year earlier, Reuters calculated.

July 27, 2011 8:35 by Reuters

Mashreq bank , Dubai’s second-biggest lender by market value, reported on Tuesday a 41 percent increase in second-quarter net profit as half-year provisions for bad loans fell.

The lender made net profit of 286.3 million dirhams ($77.9 million) for the three months to end-June, compared with 202.6 million a year earlier, Reuters calculated.

Profit for the first six months of 2011 grew 22 percent to 551.6 million dirhams and operating income was 2.2 billion, the bank said in a statement.

Provisions for loan losses fell 29 percent to 637 million dirhams in the half-year period.

“We continue to invest in people, technology, and upgrading of our products and services to seize opportunities as various markets witnessed slow but steady recovery,” Abdul Aziz Al Ghurair, CEO of Mashreq, said in the statement.

Earlier in July, Mashreq appointed a new head of its retail banking division.

Its previous retail banking head, Douglas Beckett, said in April that non-performing loans would improve in 2011. ($1 = 3.673 dirhams) (Reporting by Firouz Sedarat; Editing by David Hulmes)