Mashreqbank Q1 profit hit by credit crunch
Mashreqbank MASB.DU, the UAE's second-largest lender by market value, posted its smallest profit growth in a year in the first quarter as the global credit crunch hit investment income and costs rose.
Net income in the three months to March 31 climbed 4.5 percent to 465.3 million dirhams ($126.7 million), compared with 445 million dirhams in the year-earlier period, the United Arab Emirates bank said in a statement.
Investment income fell 28 percent to 175 million dirhams, while costs rose 32 percent as the bank spent more on staff, infrastructure and technology, it said, without giving details.
The fall in investment income was "mainly due to the widening of credit spreads, and poor liquidity in the global and regional markets," it said.
Profit surged 20 percent in the fourth quarter, 61 percent in the second and fell in third, according to Reuters data.
Net interest income and income from products that comply with Islamic law surged 67 percent to 412 million dirhams during the quarter, and net fees, commissions and other income rose 12.8 percent, the bank said.
Mashreqbank shares are up 14.5 percent this year, the second-best performer of the 11 biggest publicly listed lenders. /Reuters/
Net income in the three months to March 31 climbed 4.5 percent to 465.3 million dirhams ($126.7 million), compared with 445 million dirhams in the year-earlier period, the United Arab Emirates bank said in a statement.
Investment income fell 28 percent to 175 million dirhams, while costs rose 32 percent as the bank spent more on staff, infrastructure and technology, it said, without giving details.
The fall in investment income was "mainly due to the widening of credit spreads, and poor liquidity in the global and regional markets," it said.
Profit surged 20 percent in the fourth quarter, 61 percent in the second and fell in third, according to Reuters data.
Net interest income and income from products that comply with Islamic law surged 67 percent to 412 million dirhams during the quarter, and net fees, commissions and other income rose 12.8 percent, the bank said.
Mashreqbank shares are up 14.5 percent this year, the second-best performer of the 11 biggest publicly listed lenders. /Reuters/
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