Masraf Al Rayan has posted a net profit of QR1.63bn at the end of the third quarter in September, which indicates a 4.5% growth over the same period in 2017.
The total assets of Qatar’s leading bank grew 1% to QR99.6bn, Masraf Al Rayan said in a statement yesterday.
The quality of the bank assets (both financing and investments) continues to be one of the highest in the region and globally, maintaining a non-performing financing ratio (NPL) of 0.64%, which is being maintained consistently at this level for the last many years.
Masraf Al Rayan continues to lead the banking sector with “one of the best” operational efficiency ratios of 23.12% 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 2.15% and return on average equity at 16.72%, despite depositors’ share of profits increasing by 12.9% due to higher cost profits on deposits at local and international levels.
Masraf Al Rayan chairman and managing director Dr Hussain al-Abdulla expressed satisfaction over the results, stating that it was within expectations and in line with the positive indicators of the Qatari economy.
“The positive results were backed by a rise in international oil and gas prices and a strong performance of exports, which constitute an additional surplus in the State’s budget at a time when financial markets are still suffering from successive disruptions.”
Dr al-Abdulla said, “We are focusing our attention on Masraf Al Rayan’s meaningful contribution to the national economy through our support to infrastructure projects and projects that add value to the national economy. In order to fulfil Masraf Al Rayan’s responsibilities towards its community, we are also working to ensure the success of Qatar’s pioneering experience in hosting the 2022 World Cup, and contributing to the implementation of the Qatar National Vision 2030”.
Masraf Al Rayan group chief executive officer Adel Mustafawi “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.
Mustafawi noted that the bank’s financial position remained solid with “consistent” asset quality and profitability. This came in line with the management’s ability to adapt to the current market conditions by working with dynamism and flexibility, which reflected positively on all financial indicators.
He said the bank’s financing activities reached QR74.15bn at the end of third quarter compared with QR68.4bn in September 2017, representing an increase of 8.3%. Investments reached QR19.4bn in end-September.
Masraf Al Rayan’s customer deposits increased to QR64.5bn at the end of third quarter compared with QR60bn in September 2017, an increase of 7.4%.
Shareholders’ equity reached QR12.7bn on September 30, an increase of 0.5% compared with the same period last year.
Return on average assets continues to be one of the highest in the market at 2.15%. Return on average shareholders’ equity reached 16.72%, while earnings per share reached QR2.18 compared to QR2.08 for the period that ended in September, 2017.
Book value per share reached QR17.11 compared to QR17.02 in September 2017.
The bank’s capitalisation remained strong with common equity tier 1 (CET 1) at 18.18% and total capital adequacy ratio (CAR) at 19.04%, well above the regulatory requirements including all buffers under Basel III and the Qatar Central Bank standards.
The cost-income ratio was 23.12%, which the bank said was “due to optimal management of costs which is an incredibly efficient position in current market situation.”
Masraf Al Rayan’s non-performing financing (NPF) ratio remained at 0.64%, “reflecting a very strong and prudent credit risk management policies and procedures.”
Masraf Al Rayan said it continued to focus 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 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 Shariah.
Masraf Al Rayan focuses also on developing its use of advanced technological resources offering comprehensive banking services via alternative channels such as retail and corporate internet banking, mobile banking app and telephone banking..
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