Mashreq quarterly profit rises 35 per cent amid credit bonanza

The Dubai-based bank Mashreq said its first quarter profit rose 35 per cent, boosted by a jump in interest from loans amid a credit bonanza that has been spurred by cheap financing.
Net income climbed to Dh575 million compared to Dh425m for the same period in 2013, the bank said.
Net interest income at the end of March 2014 was up 41 per cent compared to a year earlier. That was driven by an increase in loans and an improvement in net interest margin, it said.
"The first-quarter results build confidence and are usually indicative of the year ahead," said Abdul Aziz Al Ghurair, the chief executive. "We see our growth narrative forging ahead in 2014, building as it does on a combination of employee engagement, product innovation and a very high level of technical knowledge and ability of our people.
"As a banking leader in the Middle East, we are well positioned to take advantage of the growth opportunities that the region is expected to witness in the coming years," he added.
Banks have been one of the main beneficiaries of a turnaround in the economy that started in earnest last year as government spending on infrastructure and an increase in trade and tourism boosted business confidence. Interest rates are at eight-year lows and that has prompted companies and individuals to take out loans to fund expansion and conusmer spending on items such as homes, cars and appliances.
Mashreq said its loans and advances grew by 5.6 per cent during the first quarter of this year to reach Dh53.3 billion, compared to Dh50.4bn at the end of December 2013. Customer deposits increased by a similar percentage to Dh61.9bn at the end of March, it said.
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