Financing recorded a 5.8% jump year-on-year to QR67.96bn and investments by 34.7% to QR19.63bn, the bank said after its board meeting. The Shariah-principled lender’s total assets grew 5.4% to QR93.19bn.
On the profitability indicators, the bank’s return-on-average-assets stood at 2.21% and return-on-average-equity at 16.37% despite depositors’ share of profits increasing 42.1% due to higher cost profits on deposits at local and international levels. Customers’ deposits increased 5.9% to QR61.21bn.
“The quality of the bank assets (both financing assets and investments) continue to be one of the highest in the region and globally, maintaining a non-performing financing ratio of 0.15% which has been maintained consistently within this level for the last many years,” its spokesman said.
The bank’s operational efficiency (cost-to-income) ratio stood at 22.09% and capital adequacy ratio, using Basel-III norms, was 19.43% compared to 18.01% in the year-ago period, reflecting strong and prudent credit risk management policies and procedures.
“Given the regional and global market conditions and the many threats that dominated the economic landscape including the substantial decline in oil prices, the optimal utilisation of assets and resources at Masraf Al Rayan (helped) to maintain excellent levels of performance and customer service,” chairman and managing director Dr Hussain al-Abdulla said.
The net profit realised from its banking operations exceeded those achieved in the same period last year, excluding non-recurring profit realised from investments in the first half of 2016, he said.
The methodical implementation of the prudent strategy set by the board of directors paved the way to develop high quality assets, while maintaining diversity, according to Adel Mustafawi, Masraf Al Rayan group chief executive.
“The different due diligence stream and valuation exercises are ongoing on the merger of Masraf Al Rayan with Barwa Bank and International Bank of Qatar,” he said.
Masraf Al Rayan’s book value per share reached QR16.29 at the end of June 30, 2017 against QR15.68 in the comparable period of 2016. The earnings-per-share was QR1.36 compared to QR1.4 in January-June 2016.