Masraf Al Rayan posted a net profit of QR1.08bn for the six months that ended in June, up 0.5% compared to the same period in 2019.
Commenting on the results, HE Ali bin Ahmed al-Kuwari, Masraf Al Rayan chairman and managing director, said, “The year 2020 is considered an extraordinary year. It has witnessed several crises from early on at the economic and health levels; low oil prices have impacted the global markets, then came the Covid-19 pandemic and the resulting quarantine that placed huge restrains on individuals and economic activities in its entirety and blocking movement among countries, and low consumer spending, which affected many productive and non-productive economic activities and had negatively impacted the financial and business markets.”
“In spite of these extraordinary circumstances, Masraf Al Rayan maintained its steady performance during the first half of this year, achieving notable results, under the prudent decisions made by the Government of the State of Qatar to mitigate the damage incurred within the private sector caused by the Covid-19 pandemic, the most important of which is the allocation of QR75bn to support those who were affected.”
Al-Kuwari, also touched upon the joint press release issued on June 30 by Masraf Al Rayan and Al Khaliji Commercial Bank, wherein the two banks expressed their intent to enter into preliminary negotiations on a possible merger to establish a larger and stronger financial institution. He asserted that the potential merger would be regarded as a “solid financial entity” with higher liquidity, with total assets exceeding QR164bn.
The new entity will have total equity of more than QR19bn and expected to contribute positively to the economic development in Qatar through financing development initiatives in line with Qatar’s 2030 vision.
He further indicated that the merged entity would maintain all of its dealings in compliance with the Islamic Shariah principles.
The potential merger is subject to the approval of the Qatar Central Bank, the Qatar Financial Markets Authority, the Ministry of Commerce and Industry and other relevant official bodies, and the approval of shareholders in both Masraf Al Rayan and Al Khaliji Commercial Bank, after completing a detailed financial and legal due diligence.
Group CEO Adel Mustafawi expressed an opinion consistent with HE al-Kuwari, describing the results as a true reflection of the strong ratios the bank continues to maintain in all of its key financial indicators in these exceptional circumstances.
Mustafawi said Masraf Al Rayan’s total assets reached QR109.3bn in June compared to QR102.5bn in June last year.
Financing activities reached QR78.1bn in June compared to QR74.8bn in the same period last year, an increase of 4.4%.
Investments reached QR21.4bn compared to QR20.4bn in the same period last year, an increase of 4.8%.
Customer deposits increased to QR67.4bn compared to QR64.4bn as of June 2019, an increase of 4.7%.
Shareholders ‘ equity reached QR13.3bn in June compared to QR12.8bn as of June 2019, an increase of 3.4%.
Masraf Al Rayan’s return on average assets continues to be one of the highest in the market at 2.01%. Its return on average shareholders’ equity of the bank reached 15.93%.
The banks’ capital adequacy ratio, using Basel-III standards, reached 19.7% compared to 19.45% as of (June 2019).
The bank said its non-performing financing (NPF) ratio of 0.94% is the “lowest in the banking sector reflecting very strong and prudent” credit and risk management policies and procedures.
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