Masraf Al Rayan has achieved a net profit of QR1.65bn during January-September 2019, which shows an increase of 1.32% year-on-year.
The bank’s assets grew 5.5% to QR105.05bn with financing increasing to QR75.56bn at the end of nine-month ended September 2019, which witnessed a growth of 1.5% on a yearly basis.
Investments expanded 8.4% year-on-year to QR21.34bn, while customers’ deposits rose 4% to QR67.02bn at the end of September 30, 2019.
The bank maintained one of the lowest non-performing financing (NPF) ratios internationally at 0.66%, reflecting the strong performance of its credit risk management as well as prudent policies and procedures.
The lender’s operating efficiency (cost-to-income) ratio stood at 23.61%, continuing to be the best among local banks.
Masraf Al Rayan continued to maintain its leading position with respect to return on average assets (2.18%) and return on average equity (16.51%), despite increased cost of funding both locally and globally.
“The results are satisfactory despite achieving modest profit growth during the period, due to several factors including high borrowing and deposit costs,” said Dr Hussein al-Abdullah, the bank’s chairman and managing director.
Adel Mustafawi, Masraf Al Rayan group chief executive, said the results reflected the bank’s focus on robust asset quality, prudent risk management policies and a conservative lending strategy, while continuously developing and improving customer service standards.
The bank’s total shareholders’ equity stood at QR13.43bn, thus registering a 4.7% growth on a yearly basis. Earnings-per-share remained almost flat at QR0.22 for the period ended September 30, 2019.
Capital adequacy ratio reached 19.70%, in line with Basel III standards and the Qatar Central Bank requirements, compared to 19.04% at the end of September 30, 2018.
Masraf Al Rayan continues to focus on providing Shariah-compliant financing solutions to retail and corporate clients to meet their growing needs. It is keen in diversifying products and developing services through the use of the best modern technology, and providing them in the most convenient and optimal manner.
In view of the unchanged market conditions, the board of directors has taken its final decision to close down Al Rayan Financial Brokerage and liquidate its business.