Dubai Mashreq Q4 net down 59pct

Mashreq bank, Dubai's second-largest lender by market value, saw its quarterly net profit fall by nearly 59 per cent as interest and fee income decreased in the year.

The lender made a net profit of Dh64 million ($17.4m) in the fourth quarter of 2011, according to Reuters calculations, compared to Dh155.6ms a year earlier.

Full-year net profit came in at Dh820m, the bank said in a statement, compared to Dh803m in 2010.

Mashreq made impairments worth Dh1.2 billion in 2011, a 32 per cent fall from 2010, the statement said.

"Net interest income and income from Islamic products net of distribution to depositors for the year 2011 ... was down 15.1 per cent, while net fee, commission and other income ... was down 8.0 per cent," it said.