Masraf Al Rayan has posted a first-quarter net profit of QR511mn, up 18.1% on the same period in 2014.
The bank’s total assets stood at QR83bn in March compared with QR69.3bn in the same period last year, indicating a growth of 19.9%.
Masraf Al Rayan’s financing activities increased to QR62.8bn in the first quarter of this year compared to QR45.6bn in Q1, 2014. Investments totalled QR14.1bn in March, which indicates a growth rate of 1.7%.
Customer deposits reached QR60.8bn in March compared with QR52.3bn in the first quarter of last year. Shareholders equity reached QR10.5bn in March compared with QR9.8bn in the same period last year.
Return on assets at 2.5% was one of the highest in the local market. Return on shareholders’ equity reached 19.3% in March compared to 17.6% in the same period last year.
Earnings per share for the period reached Dh68 in the first quarter compared with Dh58 in March, 2014.
Book value per share reached QR14.1 in Q1, compared with QR13.1 in March 2014.
Capital adequacy ratio (under Basel-III standards) reached 17.41% in Q1 compared with 18.65% in March, 2014 based on Basel-II standards.
Operational efficiency cost-income ratio at 17.7% continues to be one of the best in the region and the World.
“Non-performing loans (NPL) ratio of 0.09% again continues to be one of the lowest in the banking industry. This reflects very strong and prudent credit risk management policies and procedures,” the bank said in statement.
Masraf Al Rayan chairman and managing director Dr Hussain al-Abdulla described the results as “realistic and in line with the board’s expectations, cautioning that 2015 will be a year full of challenges.”
Group chief executive officer Adel Mustafawi described results as “good, reflecting on the upward performance trend achieved through dedication and hard work.”
Masraf Al Rayan said it continued to “develop new products and services to better serve its customers by offering quality and flexibility in line with the best international banking practices.”
The bank said it began the process to get “necessary regulatory approvals” to set up an exchange traded fund (ETF), as phase one, which will trade Shariah-compliant stocks on the Qatar Exchange wherein tracking Al Rayan Islamic Index.
In phase 2, Masraf Al Rayan will “work to get the necessary approvals” to set up its Shariah-compliant sukuk trading fund (income generating fund), for investment in fixed income markets with target yield exceeding earnings from deposit accounts and shall be distributed annually to investors. Al Rayan investment (ARI) will manage both funds.