Dubai: Mashreq reported a net profit of Dh 484 million for the first qaurter of 2009 as against Dh465 million for the same period last year, representing a growth of four per cent.

As part of strategic repositioning of Mashreq Assets/Liabilities in view of present global financial crisis, the total assets of the group were brought down to Dh90.66 billion from Dh93.2 billion at end of 2008, the bank said in a statement yesterday.

The bank's customer deposits reached Dh54.5 billion, an increase of six per cent over last year-end of Dh51.5 billion, whilst customer advances have declined by two per cent to Dh 53.9 billion from Dh55 billion.

This resulted in improved advances to customer deposit ratio of 98.8 per cent as against 106.9 per cent at end of 2008.

"The UAE banking sector remains resilient in the face of the international financial crises. Positive financial results, in addition to ongoing development of alliances both locally and regionally, reflect Mashreq's strength and soundness to maintain operations and accessible services even when the economic tide turns. Our main focus now is on our basic banking operation and further cementing our relationship with our clients and partners," said Abdul Aziz Al Ghurair, CEO of Mashreq

In spite of decline in advances, Mashreq maintained the overall spread and Net interest income went up from Dh493 million for same period last year by 18 per cent to Dh582 million for the first quarter of 2009.

Non interest income (fee, commission, investments and other income) showed increase of 15 per cent to Dh645 million opposed to Dh561 million for the first quarter of last year.

Operating income reached Dh1.22 billion during the current quarter as against Dh1.05 billion for the same period last year, posting an increase of 16.4 per cent.

In view of the current economic situation, Mashreq has increased its loan loss reserves enhancing the charge for the quarter to Dh232 million.

With this the provisions held for impaired specific advances along with general provision for performing advances reached Dh1.28 billion providing 264 per cent coverage to non-performing portfolios.