Mashreqbank
Mashreqbank has emerged as the winner for United Arab Emirates (UAE) this year as a result of an improvement in its profitability last year and a clever decision to expand in neighbouring Qatar, which is a lucrative market.
Mashreqbank increased net profit by 24% in 2002, which was nine percentage points better than the increase for 2001. It also lifted its ROE to 17% in 2002 from 15% in 2001, and there was a further drop in its already low cost-to-income ratio.
As part of a three-year strategic plan implemented in January 2002, Mashreqbank launched its expansion in the Persian Gulf region, opening a branch for retail and commercial customers in Doha, Qatar.
Meanwhile back home, the strategic plan helped the bank to boost its fee income considerably in the areas of project finance, asset management, bancassurance and credit cards. Mashreqbank also greatly improved its credit risk management to further reduce non-performing loans. Tier 1 capital rose about 10%, further strengthening the bank’s balance sheet.
During 2002, the bank enhanced its internet banking product for retail, corporate and correspondent banking clients. This led to an increase of 20% in usage of the product by these clients.
