Mashreqbank, one of the UAE's leading financial institutions, reported a 3 percent year-on-year increase in operating revenues for the first six months of 2009. In spite of challenging market conditions, revenue for the second quarter of 2009 remained strong at AED1.2 billion, equal to the first quarter's revenue of the year. The operating expenses went down to AED440 million, a reduction of 8 percent quarter on quarter. Impairment provisions for the quarter were enhanced to AED319 million. This measure has led to a 10 percent decline in quarter on quarter profit to AED435 million as compared to AED484 million in Q1 2009. However as compared to Q2 of 2008 profit declined by 38 percent, due to primarily higher provisioning as mentioned earlier. Higher provisions have resulted in a 22 percent decline in net profits to AED919 million for the first half of 2009 as compared to AED1.17 billion in the first half of 2008. The net interest income and income from Islamic products, net of distribution to depositors, for the six months ended 30 June 2009 grew by 5.2 percent from AED 1.01 billion to AED1.06 billion (including NII earned on trading investments). Commission and other income excluding investment income also recorded an impressive growth of 16.4 percent year on year and operating income increased by 3 percent to reach AED2.45 billion against AED2.38 billion for the same period last year. Mashreq has set aside AED551.4 million for impaired assets in the first six month of 2009.
