(MENAFN- The Peninsula) Masraf Al Rayan has delivered a net profit of QR510m for the three months ended March 2017. The bank's assets grew by 8.2 percent to QR94.37bn.
The asset quality (both financing & investments) continues to be one of the highest in the region and globally, maintaining a nonperforming financing ratio (NPL) of 0.16 percent which has been maintained consistently below this level for the last many years. Masraf Al Rayan continues to lead the banking sector with one of the best operational efficiency ratio (cost to income ratio) of 21.64 percent compared to its peers in the market.
On the profitability indicators, Masraf Al Rayan again continued to maintain its leading position with annualised return on average assets at 2.20 percent and annualised return on average equity at 16.72 percent, despite the depositors' share of profits increasing by 45.1 percent due to higher cost of customer deposits at local and international levels.
The bank's net profit for the first quarter of 2017 compared to the similar quarter of 2016 (adjusted for non-recurring investment gain from associates) increased by 2.2 percent which indicates a reasonable growth in core operating income, the lender said.
Masraf Al Rayan's financing activities reached QR67bn, up 3.2 percent compared to QR65bn reported a year earlier. Investments rose to QR15.55bn from QR14.72bn or 5.6 percent up. Customer deposits increased by 12.4 percent to QR63bn. Shareholders' equity reached QR11.71bn, an increase of 4 percent.
Commenting on the financial results, Dr. Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, expressed his satisfaction given the regional and global market conditions and many other threats that dominated the economic landscape including the substantial decline of oil prices. Dr. Al Abdulla praised the optimal utilization of assets and other resources at Masraf Al Rayan disposal to maintain sustainable financial performance and excellent customer service.
'The net profits of Masraf Al Rayan realized from its core banking operations in 2017 exceeded those achieved in the first quarter of 2016, adjusted for the profits realized from the non-recurring investment in the first quarter of 2016, he said.
Adel Mustafawi, Masraf Al Rayan's Group Chief Executive Officer, attributed the solid results to the methodical implementation by the executive management of the prudent strategy set by the Board of Directors, which paved the way to develop high quality and profitable assets while maintaining diversity and serving a wide range of customer segments.
Masraf Al Rayan will continue to focus on providing integrated Sharia- compliant financing solutions for retail and businesses customers, as the bank has traditionally provided banking and financing solutions for individuals to meet their increasing different needs. In the corporate sector, Masraf Al Rayan has a wide range of banking and financing solutions, all of which are compatible with the provisions of the Islamic Sharia, Adel said.
Masraf Al Rayan focuses also on developing its use of advanced technological resources offering comprehensive banking services via alternative channels such as retail and corporate internet banking, mobile banking App and telephone banking.
Masraf Al Rayan will continue to focus on diversifying its products and advancing its services to meet the increasing needs of its client base .
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