Doha: Masraf Al Rayan announced yesterday net profit of QR1,143m for the six-month period ending June 30, 2021, showing a growth of 5.5 percent compared to the same period last year. H E Ali bin Ahmed Al Kuwari, Chairman and Managing Director, commended the good results particularly amid the challenging conditions that affected negatively the financial markets. He attributed these commendable results in part to the support extended by the State of Qatar to private sectors in overcoming the adverse conditions from the global spread of the COVID-19 pandemic.
The merger between Masraf Al Rayan (Q.P.S.C.) (Al Rayan) and Al Khalij Commercial Bank P.Q.S.C. (‘Al Khaliji’) has been approved by the Qatar Financial Markets Authority on June 10, 2021. Al Rayan and Al Khaliji are in the process of holding their respective extraordinary general assemblies to get the shareholders’ approval. On 4 July 2021, Al Rayan and Al Khaliji announced the appointment of Fahad Al Khalifa as the Group CEO of the merged bank, subject to all necessary approvals on the appointment, from the date the shareholders of both Al Rayan and Al Khaliji approve the merger and after obtaining the approval from Qatar Central Bank and other regulators on the merger.
The merger’s integration adviser is continuously working with Al Rayan and Al Khaliji in implementing the merger that will create a larger and stronger financial institution with a strong financial position and significant liquidity.
He also expressed his satisfaction with the results, as they were in line with expectations and with what was planned to be achieved by adhering to a tight strategy set by the Board of Directors, supervising its implementation, and following a committed action plan that the team worked on. Masraf Al Rayan distinguishes itself in implementing its provisions, and expects that it would achieve more successes through its focus on providing distinguished services to its customers.
Total assets of Masraf Al Rayan amounted to QR125,059m as on June 30, 2021, compared to QR109,339m as on June 30, 2020, a growth of 14.4 percent. Its financing activities amounted to QR91,202m, compared to QR78,104m as on June 30, 2020, an increase of 16.8 percent while its investments reached QR20,421m as of June 30, 2021.
Customer deposits amounted to QR 75,927m, compared to QR 67,417m as on June 30, 2020, a growth of 12.6 percent. Total shareholders’ equity reached QR14,248m, compared to QR13,294m on 30 June 2020, an increase of 7.2 percent.
Bank’s return on average assets continues to be one of the highest in the market at 1.86 percent and return on average shareholders’ equity is 15.98 percent. Its earnings per share is QR0.152 while book value per share reached QR1.90, compared to QR1.77 as of 30 June 2020. Capital adequacy ratio, using Basel III standards and QCB regulations, reached 20.29 percent compared to 19.70 percent as of 30 June 2020. Operating efficiency ratio (cost to income) is 18.97 percent, which continues to be one of the best in the region while Non-performing financing (NPF) ratio is 1.07 percent and is the lowest in the banking sector, reflecting strong and prudent credit risk management policies and procedures
