Masraf Al Rayan posts 8% gain in Q1 profit to QR432.27mn

Masraf Al Rayan’s total assets grew 11% to QR69.36bn with loans and advances standing at QR45.64bn, up 10% year-on-year.

Masraf Al Rayan has reported an 8% growth in net profit to QR432.27mn in January-March this year despite total expenses growing much faster than total income.

Net income from financing and investments was up a mere 0.59% to QR618.96mn, but that from net fee and commission jumped 97% to QR62.77mn, according to its financial statement.

Net foreign exchange gains grew 41% to QR18.2mn and other income more than doubled to QR3.07mn; even as share of results of associate and joint venture plunged 54% to QR4.94mn.

Nevertheless, Masraf Al Rayan’s total income was up 5% to QR707.94mn.

“These outstanding results confirm the success of the strategy adopted by the bank in managing its banking, investment and commercial operations in line with Shariah guidelines and principles,” Masraf Al Rayan chairman and managing director Dr Hussain Ali al-Abdulla said.

Total expenses shot up 24% to QR137.13mn with staff costs expanding 14% to QR62.32mn and other expenses by 83% to QR58.55mn; while finance expense was down 39% to QR12.09mn.

Masraf Al Rayan CEO Adel Mustafawi said total assets grew 11% to QR69.36bn with loans and advances at QR45.64bn, which was up 10% year-on-year.

“Significant progress has been made regarding the sustainability of high quality assets portfolio minimising the risk for impairment provision, and accordingly this places Masraf Al Rayan at a leading position in terms of asset and credit quality,” Mustafawi said.

Customers’ deposits increased 15% to QR52.34bn.

Total equity stood at QR10.05bn on a capital base of QR7.5bn and earnings-per-share was QR0.58 at the end of March 31, 2014.