The quality of the bank assets (both financing assets & investments) continues to be one of the highest in the region and globally, maintaining a non-performing financing ratio (NPL) of 0.15% 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% 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% and return on average equity at 16.37%, despite depositors' share of profits increasing by 42.1% due to higher cost profits on deposits at local and international levels.

Masraf Al Rayan's net profit for the first half of 2017 compared to the similar period in 2016 increased by 6.5%, adjusted for non-recurring investment gain from associates recognized in the first 6 months of 2016.

In his comment on the results, His Excellency Dr. Hussain Al Abdulla, the 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 utilization of assets and resources at Masraf Al Rayan to maintain excellent levels of performance and customer service. He added that the net profits of Masraf Al Rayan realized from its banking operations exceeded those achieved in the same period last year, excluding the non-recurring profit realized from investments in the first half of 2016.

Mr. Adel Mustafawi, Masraf Al Rayan's Group Chief Executive Officer, 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.

Mr. 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.

Mr. Mustafawi noted that the consolidated financial statements include Masraf Al Rayan, Al Rayan Bank Plc and other subsidiaries, associates and affiliates. He further disclosed the Q2 financial statements as follows:

  • Net profit for the period amounted to QAR 1,020 million, compared to QAR 1,051 million achieved by the Bank in the corresponding period of 2016, a decrease of 2.9%.
  • Total assets reached QAR 93,189 million compared to QAR 88,403 million as of 30 June 2016, an increase of 5.4%
  • Financing activities reached QAR 67,959 million compared to QAR 64,263 million as of 30 June 2016, an increase of 5.8%.
  • Investments reached QAR 19,632 million compared to QAR 14,573 million as of 30 June 2016, an increase of 34.7%.
  • Customer deposits increased to QAR 61,206 million compared to QAR 57,771 million as of 30 June 2016, an increase of 5.9%
  • Shareholders ' equity reached QAR 12,221 million compared to QAR 11,760 million on 30 June 2016, an increase of 3.9%

Financial Indicators
  • Return on average assets continues to be one of the highest in the market at 2.21%
  • Return on average shareholders' equity of the bank reached 16.37%.
  • Earnings per share for the period reached QAR 1.36 compared to QAR 1.40 for the period ended 30 June 2016.
  • Book value per share reached QAR 16.29 compared to QAR 15.68 as of 30 June 2016.
  • Capital adequacy ratio, using Basel-III standards, reached 19.43% compared to 18.01% as of 30 June 2016.
  • Operational Efficiency ratio (cost to income ratio) was maintained at 22.09%.
  • Non-performing financing (NPF) ratio remained at 0.15% reflecting a very strong and prudent credit risk management policies and procedures.

Masraf Al Rayan Products & Services 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, all of which are compatible with the provisions of the Islamic Sharia. Masraf Al Rayan focuses also on developing its use of advanced technological resources offering comprehensive banking services via alternative channels such as retial and corporate internet banking, mobile banking App and telephone banking. Masraf Al Rayan continues to focus on diversifying its products and advancing its services to meet the increasing needs of its client base with the required flexibility and maximum level of ease, using new technologies to enable optimal customer experience.

Human resources and training
Masraf Al Rayan executive management continues to avail the necessary resources, training and development to all employees across the organization and especially Qataris to enable them to provide the best quality of customer service.

Social and environmental responsibility
Masraf Al Rayan continues to honor its societal role, taking responsibility, and providing great support to members of the community in several categories to improve their living conditions and build a better society.
The participation of Masraf Al Rayan is not confined to public issues, but extends to other important domains, including preserving the environment and avoiding harmful behavior, and encouraging healthy and sporting activities of individuals in various fields.

Masraf al Rayan QSC published this content on 18 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 17 July 2017 12:12:13 UTC.

Original documenthttps://www.alrayan.com/english/media-center/news-and-press-releases/masraf-al-rayan-announces-a-net-profit-of-qar-1020-million-at-the-end-of-2nd-quarter-2017

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