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Masraf Al Rayan announces a net profit of QAR 510 million for the 1st Quarter 2017
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Masraf Al Rayan, a leading bank in Qatar and the region, announced today its financial results for the three months ended 31 March 2017, delivering a net profit of QAR 510 million, with assets growing by 8.2% to reach QAR 94,378 million.  The asset quality (both financing & investments) continues to be one of the highest in the region and globally, maintaining a non–performing financing ratio (NPL) of 0.16% which has been maintained consistently below this level for the last many years. Masraf Al Rayan continues to lead the banking sector with one of the best operational efficiency ratio (cost to income ratio) of 21.64% compared to its peers in the market.

On the profitability indicators, Masraf Al Rayan again continued to maintain its leading position with annualised return on average assets at 2.20% and annualised return on average equity at 16.72%, despite the depositors' share of profits increasing by 45.1% due to higher cost of customer deposits at local and international levels.

Masraf Al Rayan net profit for the first quarter of 2017 compared to the similar quarter of 2016 (adjusted for non-recurring investment gain from associates) increased by 2.2% which indicates a reasonable growth in core operating income.

In his comment on the results, His Excellency Dr. Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, expressed his satisfaction given the regional and global market conditions and many other threats that dominated the economic landscape including the substantial decline of oil prices. At the same time Dr. Al Abdulla praised the optimal utilization of assets and other resources at Masraf Al Rayan disposal to maintain sustainable financial performance and excellent customer service. He further added that “the net profits of Masraf Al Rayan realized from its core banking operations in 2017 exceeded those achieved in the first quarter of 2016, adjusted for the profits realized from the non-recurring investment in the first quarter of 2016.”

Mr. Adel Mustafawi, Masraf Al Rayan's Group Chief Executive Officer, 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 and profitable assets while maintaining diversity and serving a wide range of customer segments.

Mr. Mustafawi noted that the consolidated financial statements include Masraf Al Rayan, Al Rayan Bank Plc and other subsidiaries, associates and affiliates.He further disclosed the Q1 financial statements as follows:

  • Net profit for the period amounted to QAR 510 million, compared to QAR 546 million achieved by the Bank in the corresponding period of 2016, a decrease of 6.5%
  • Total assets reached QAR 94,378 million compared to QAR 87,241 million as of 31 March 2016, an increase of 8.2%.
  • Financing activities reached QAR 67,511 million compared to QAR 65,434 million as of 31 March 2016, an increase of 3.2%.

  • Investments reached QAR 15,559 million compared to QAR 14,727 million as of 31 March 2016, an increase of 5.6%.
  • Customer deposits increased to QAR 63,074 million compared to QAR 56,128 million as of 31 March 2016, an increase of 12.4%
  • Shareholders ' equity reached QAR 11,712 million compared to QAR 11,261 million on 31 March 2016, an increase of 4.0%

Financial Indicators
  • Return on average assets continues to be one of the highest in the market at 2.20%.
  • Return on average shareholders' equity of the bank reached 16.72% compared to 18.73% for the period ended 31 March 2016.
  • Earnings per share for the period reached QAR 0.68 compared to QAR 0.73 for the period ended 31 March 2016.
  • Book value per share reached QAR 15.62 compared to QAR 15.01 as of 31 March 2016.
  • Capital adequacy ratio, using Basel-III standards and QCB regulations, reached 19.46% compared to 18.41% as of 31 March 2016.
  • Operational Efficiency ratio (cost to income ratio) was 21.64%.
  • Non-performing financing (NPF) ratio reached 0.16% reflecting very strong and prudent credit risk management policies and procedures.

Masraf Al Rayan Products & Services
Masraf Al Rayan continue to focus on providing integrated Sharia- 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 Sharia.
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.
Masraf Al Rayan continues to focus on diversifying its products and advancing its services to meet the increasing needs of its client base with the required flexibility and maximum level of ease, using new technologies to enable optimal customer experience.

Human resources and training
Masraf Al Rayan executive management continues to avail the necessary resources, training and development to all employees across the organization and especially Qataris to enable them to provide the best quality of customer service.

Social and environmental responsibility
Masraf Al Rayan continues to honor its societal role, taking responsibility, and providing great support to members of the community in several categories to improve their living conditions and build a better society.
The participation of Masraf Al Rayan is not confined to public issues, but extends to other important domains, including preserving the environment and avoiding harmful behavior, and encouraging healthy and sporting activities of individuals in various fields.
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