Irani with more than 30 years of experience in payments, retail banking and e-commerce across
"Overall the bank's growth is driven by multiple engines and is set to perform even better this year. A large part of the growth is coming from the retail business," said Irani.
Clearly the figures validate the claim. Mashreq's bottom-line has grown 35 per cent year on year in the first four months of the year while the retail profits have grown 40 per cent, the retail assets and liabilities grew 50 per cent and 45 per cent respectively.
Fee income has been one of the key factors that have been driving the bank's profitability. "The
Additionally, a lot of its revenue streams are supported by a robust insurance business, foreign exchange and a payment business. The bank has both issuing and acceptance business with a 12 per cent share on the issuing side and a 30 per cent share on acceptance.
While the wealth management business is emerging a key profit centre, the bank's total assets under management is growing at 200 per cent year on year with
Irani says Mashreq is fully prepared to utilise the strong revival of the
The results are visible on Mashreq's balance sheet. The bank's retail business made a loss of Dh180 million 2011 then it went on to make about Dh300 million profit in 2012 and Dh600 million in 2013. This year profits from retail business is projected to cross Dh1 billion.
Irani expects a mild slowdown in retail loan growth this year as a result of implementation of credit bureau. Credit bureau, according to him, is a very positive development. In the immediate future there could be a small increase in impairments and provisions and some amount of loan restructurings.
Although there could be a small rise in provisions, Irani expects the impact on non- performing loans will be marginal. The bank currently has a relatively low NPL ratio of 1.5 per cent for its retail portfolio and about 3 per cent on total assets.
Most Popular Stories
- McDonald's Packages Coffee for National Distribution
- Castro-Blanco Joins Fifth Street Finance Board
- HTC Makes Windows Version of Flagship One Phone
- Ballmer Steps Down From Microsoft Board
- Eric Holder Bringing Civil Rights Reminders to Ferguson
- Rising Freight Prices Signal Global Recovery
- Uber Hires Obama Campaign Manager David Plouffe
- Bob Marley Musical to Make Premiere in Baltimore
- Sprint Cancels Framily, Rolls Out New Data Pricing Plan
- Russia Claims Ukraine Leaders Are Satanists, Jews or Maybe Even Scientologists