Masraf Al Rayan has posted a net profit of QR1.56bn in nine months up to September, up 3% on the same period last year.
The bank’s total assets reached QR86.9bn in September compared with QR79.8bn on September 30 last year. Financing activities reached QR66.9bn compared with QR60.3bn in the same period last year, an increase of 11%.
The bank’s investments reached QR14.5bn in September, up 6.3%.
Customer deposits totalled QR56.6bn in September compared with QR52.7bn in the same period last year, an increase of 7.4%.
The bank’s shareholders ‘ equity reached QR12.2bn, up 6.3% on QR11.5bn registered during the same period last year.
The bank’s return on average assets continues to be one of the highest in the market at 2.44%. The return on average shareholders’ equity reached 17.11% at the end of the nine-month period compared to 17.63% for the period that ended on September 30, Masraf Al Rayan said.
Earnings per share (EPS) for the period reached QR2.08 compared to QR2.01 for the period that ended in September. Book value per share reached QR16.36 compared to QR15.39. Capital adequacy ratio, using Basel-III standards, reached 17.85% compared to 17.91% as of September 30 last year.
The operational efficiency ratio (cost to income ratio) was maintained at 19.14%, to remain “one of the best ratios” in the region and the world, Masraf Al Rayan said. Non-performing financing (NPF) ratio remained at 0.05% reflecting a very strong and prudent credit risk management policies and procedures.
Masraf Al Rayan chairman and managing director Dr Hussain al-Abdulla said the results were within the Board’s expectations given current business and market conditions.
Adel Mustafawi, group chief executive officer, said the results were consistent with the adopted business plan and reflected a lot of efforts and hard work exerted by all team members in the Masraf Al Rayan Group.
Masraf Al Rayan said it remained focused on providing integrated Shariah-compliant financing solutions for retail and businesses customers, as the bank has traditionally provided banking and financing solutions for individuals to meet their different needs. In the corporate sector, the bank has a wide range of banking and financing solutions, all of which are compatible with the provisions of the Islamic Shariah.
Masraf Al Rayan is also building on its use of advanced technology, offering comprehensive banking services via alternative channels such as retail and corporate Internet banking, mobile banking and telephone banking.
At the end of August 2016, Moody’s Investor Services upgraded Masraf Al Rayan’s long term issuer ratings to A1 from A2 and counterparty risk (CR) assessment to Aa3 (CR) from A1 (CR). The outlook on the long-term ratings has changed to “stable” from positive.
The rating upgrade by Moody’s took into account Masraf Al Rayan’s consistently strong asset quality performance (since it commenced operations in 2006) with a current non-performing financing ratio (NPFs analogous to non-performing loans) of around 0.1% of total financing assets. The upgrade ratings reflect consistently strong asset quality performance, strong profitability and capital metrics and continued business diversification as a result of growth and profitability of the UK subsidiary (Al Rayan Bank).
The bank also has maintained a solid return on assets at around 2.5% since 2011 (2.4% for the first six months of 2016) compared to Qatari banks average return on assets of 1.68% as of June 2016.
Masraf Al Rayan’s capital levels compare both favourably to the 17% local average and the 13% median for banks’ with ‘baa2’ baseline credit assessments.