DOHA: Masraf Al Rayan, a leading bank in Qatar and the region, delivered a net profit of QR1.06bn for the first half of 2018 ( H1, 18), up 4.5 percent compared to the profit in the same period of the previous year.
The bank’s assets continued its growth, increasing by 7.8 percent to reach QR100bn. The asset quality continued to be one of the highest in Qatar and the region, maintaining low non–performing financing ratio (NPF) of 0.67 percent. Masraf Al Rayan continued to lead the banking sector with one of the best operational efficiency ratio of 23.36 percent.
On the profitability indicators, Masraf Al Rayan maintained one of the best annualised return on average assets at 2.10 percent and annualised return on average equity at 16.75 percent, despite the customer depositors’ share of profits increasing by 7.8 percent due to higher cost of customer deposits at local and international levels.
Commenting on the results, Dr Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, expressed his satisfaction over the results, stating that it is within expectations and in line with the positive indicators of the Qatari economy. The positive results were backed by a rise in international oil and gas prices and a strong performance of exports, which constitute an additional surplus in the State’s budget at a time when financial markets are still suffering from successive disruptions.
Dr Al Abdulla added: “We are focusing our attention in Masraf Al Rayan on the meaningful contribution to the national economy through our support to infrastructure projects and projects that add value to the national economy. In order to fulfill Masraf Al Rayan’s responsibilities towards its community, we are also working to ensure the success of Qatar’s pioneering experience in hosting the 2022 World Cup, and contributing to the implementation of Qatar National Vision 2030”.
Adel Mustafawi, Masraf Al Rayan’s Group Chief Executive Officer, voiced optimism that the announced financial results will support the prudent initiatives of the administration to achieve further success in its bid to realize the objectives set by the Board of Directors, which focuses on developing high quality assets, mitigating risks and offering the best services to its customers.
He said the bank’s financing activities reached QR72bn, an increase of 7.0 percent compared to QR67.95bn recorded a year ago. Investments reached QR19.6bn, up 0.3 percent compared to QR19.6bn as of 30 June 2017. Customer deposits increased to QR62.7bn, an increase of 2.4 percent. Shareholders ‘ equity reached QR 12.26bn.
Masraf Al Rayan’s return on average assets continues to be one of the highest in the market at 2.10 percent. Return on average shareholders’ equity of the bank reached 16.75 percent. Earnings per share for the period reached QR1.42 compared to QR1.36 for the period ended 30 June 2017. Book value per share reached QR16.35 compared to QR16.29.
Capital adequacy ratio, using Basel-III standards and QCB regulations, reached 18.75 percent compared to 19.43 percent. Operational Efficiency ratio (cost to income ratio) stood at 23.36 percent as Non-performing financing (NPF) ratio reached 0.67 percent, reflecting very strong and prudent credit and risk management policies and procedures.
