Dr Hussain Al Abdulla, Chairman and Managing Director of Masraf Al Rayan
DOHA: Masraf Al Rayan delivered a net profit of QR2.13bn for the full-year 2018, up 5.04 percent over the same period last year. The Board of Directors, at a meeting held yesterday, recommended a cash dividend distribution of QR 2 per share, representing 20 percent of the paid-up capital. The recommendation is subject to the approval of the shareholders, in a General Assembly Meeting which is scheduled to be held on 25th February 2019, after obtaining the approval from Qatar Central Bank.
Announcing the financial results, Dr Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, said: “The results achieved are considered satisfactory in light of the current situation in the region and the recent declines in energy prices, especially as these results represent growth of Masraf Al Rayan on more than one level, which the Board of Directors, in collaboration with the Executive Management and employees of the Bank, seeks to achieve year after year. The growth is moreover in line with the overall growth achieved by the State of Qatar, thanks to the policies set by the Qatari leadership.
Dr Al Abdulla expressed his satisfaction with the figures highlighted by the financial indicators, which placed Masraf Al Rayan among the leading banks in the State of Qatar, especially in terms of operational efficiency and the low ratio of non-performing financing. This was reflected in the profitability and earning per share which maintained its stability throughout the year.
Adel Mustafawi, Group Chief Executive Officer, said the results achieved were decent, with the increase in net profit. Masraf Al Rayan’s operating income increased by 12.15 percent over the same period last year.
The bank’s total assets reached QR97.29bn compared to QR102.9bn as of 31 December 2017. Financing activities reached QR72.16bn from QR72.09bn, up 0.1 percent from a year ago. Investments reached QR19.53bn compared to QR23.9bn in 2017. Customers’ deposits touched QR61.56bn. Shareholders’ equity before distribution is at QR13.27bn, up 0.7 percent.
Masraf Al Rayan’s return on average assets continues to be one of the highest in the market at 2.13 percent. Return on average shareholders’ equity of the bank, before distribution, is 16.10 percent. Earnings per share for the year reached QR2.841, compared to QR 2.704 for 2017. Book value per share, before distribution, is at QR 17.70, compared to QR 17.59 on 31 December 2017. Capital adequacy ratio reached 19.23 percent from 19.32 percent.
The bank’s operational efficiency ratio (cost to income ratio) is at 24.06 percent and continues to be one of the best in the region. Non-performing Financing (NPF), analogous to non-performing loans, ratio of 0.83 percent continues to be one of the lowest in the banking industry, reflecting a very strong and prudent credit risk management policies and procedures
With regard to the rating of Masraf Al Rayan, Moody’s Global Investors Services reaffirmed the outlook for Masraf Al Rayan to “stable” and therefore the current rating of Masraf Al Rayan is A1 / Prime-1 with a stable outlook. This rating reflects the bank’s strong government-linked position in the State of Qatar, its ability to diversify sources of income, stability in asset quality and a low NPF ratio.
Masraf Al Rayan pays great attention to improving its products and providing integrated Sharia compliant financing solutions to retail and corporate customers alike. Masraf Al Rayan continues to provide financing solutions to retail customers to meet their diverse needs.
