Qatar- Masraf Al Rayan reports QR1.02bn H1 net profit

Masraf Al Rayan, a leading bank in Qatar and the region, reported a net profit of QR1.02bn for the first six months (H1) of the year ended June 30, 2017, down 2.9 percent compared to QR1.05bn registered during the corresponding period last year.
However, the assets of the bank have grown to reach QR93.18bn, up by 5.4 percent compared to QR88.40bn as of June 30, 2016.
The quality of the bank assets (both financing assets and investments) continues to be one of the highest in the region and globally, maintaining a non-performing financing ratio (NPL) of 0.15 percent which has been maintained consistently within this level for the last many years. Masraf Al Rayan continues to lead the banking sector with one of the best operational efficiency ratio of 22.09 percent compared to its peers in the market.
On the profitability indicators, Masraf Al Rayan again continued to maintain its leading position with return on average assets at 2.21 percent and return on average equity at 16.37 percent, despite depositors' share of profits increasing by 42.1 percent due to higher cost profits on deposits at local and international levels.
Dr Hussain Al Abdulla, Chairman and Managing Director of Masraf Al Rayan, expressed his satisfaction given the regional and global market conditions and the many threats that dominated the economic landscape, including the substantial decline of oil prices, praising at the same time the optimal utilisation of assets and resources at Masraf Al Rayan to maintain excellent levels of performance and customer service.
Dr Hussain added that the net profits of Masraf Al Rayan realised from its banking operations exceeded those achieved in the same period last year, excluding the non-recurring profit realised from investments in the first half of 2016.
Adel Mustafawi, Masraf Al Rayan's Group CEO, credited the announced financial 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 assets while maintaining diversity and serving a wide range of customer segments.
Mustafawi added that different due diligence streams and valuation exercises are ongoing on the merger of Masraf Al Rayan with Barwa Bank and International Bank of Qatar.
He noted that the consolidated financial statements include Masraf Al Rayan, Al Rayan Bank Plc and other subsidiaries, associates and affiliates.
Earnings per share for the period reached QR1.36 compared to QR1.40 for the period ended June 30, 2016.
Capital adequacy ratio, as per Basel-III standards, reached 19.43 percent compared to 18.01 percent as of 30 June 2016. Operational Efficiency ratio (cost to income ratio) was maintained at 22.09 percent. Non-performing financing (NPF) ratio remained at 0.15 percent reflecting a very strong and prudent credit risk management policies and procedures.
Masraf Al Rayan 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.

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