EARNINGS RELEASE For The Year 2022
MASRAF AL RAYAN REPORTS A NET PROFIT OF QAR 1.34 BILLION FOR YEAR ENDING DECEMBER 31, 2022
January 29, 2023
- Net Operating income reached QAR 4.36 billion
- Net financing assets closed at QAR 118 billion
- Deposits closed at QAR 97 billion
- The Capital Adequacy ratio stood at 20.3%
Doha, January 29, 2023:
Masraf Al Rayan Q.P.S.C today released its consolidated financial statements for the year ended 31 December 2022 with a Net Profit attributable to the equity holders of the bank of QAR 1.34 billion. The results issued are subject to Qatar Central Bank’s approval and endorsement by shareholders at the Bank’s Annual General Assembly.
Masraf al Rayan’s Chairman, His Excellency Sheikh Mohamed Bin Hamad Bin Qassim Al Thani stated:
“2022 was a turning point for Masraf Al Rayan subsequent to the merger. We successfully completed the operational integration which helps to drive agility across the business and improve our service offering to our valued clients. We have also launched Sustainable Finance Framework – Qatar’s first Shari’a compliant green deposit and Islamic sustainable financing framework. Moreover, we have also increased our Foreign Ownership Limit (FOL) to 100%, which will assist to boost the bank’s weight in major indices. Our year-end results are in line within our expectations; we remain focused on building a comprehensive strategy to deliver strong performance and meeting shareholders expectations. I am confident of our ability to remain at the forefront as a leading Islamic bank in the region.”
Commenting on the year-end financial performance, Masraf al Rayan’s Group Chief Executive Officer, Mr. Fahad Al Khalifa, said:
“Net profit for the year was QAR 1.34 billion. Our Net Operation Income for 2022 was QAR 4.4 billion, which reflects steady revenues from our banking activities. We adopt a conservative approach to provisioning and many of our numbers indicate progression and resilience. Our liquidity is healthy and capital base robust, with capital adequacy ratio of 20.3%. Our immediate focus is on product and process enhancement to enrich the customer experience through greater investment in technology.”
Key Financial Highlights
Cash Dividend
After reviewing the audited financials today, the Board was satisfied with the 2022 financial performance and has recommended (subject to QCB approval) to the Annual General Assembly the distribution of a cash dividend of 10% of the nominal share value, i.e. QAR 0.10 per share.
Masraf al Rayan’s Chairman, His Excellency Sheikh Mohamed Bin Hamad Bin Qassim Al Thani stated:
“2022 was a turning point for Masraf Al Rayan subsequent to the merger. We successfully completed the operational integration which helps to drive agility across the business and improve our service offering to our valued clients. We have also launched Sustainable Finance Framework – Qatar’s first Shari’a compliant green deposit and Islamic sustainable financing framework. Moreover, we have also increased our Foreign Ownership Limit (FOL) to 100%, which will assist to boost the bank’s weight in major indices. Our year-end results are in line within our expectations; we remain focused on building a comprehensive strategy to deliver strong performance and meeting shareholders expectations. I am confident of our ability to remain at the forefront as a leading Islamic bank in the region.”
Commenting on the year-end financial performance, Masraf al Rayan’s Group Chief Executive Officer, Mr. Fahad Al Khalifa, said:
“Net profit for the year was QAR 1.34 billion. Our Net Operation Income for 2022 was QAR 4.4 billion, which reflects steady revenues from our banking activities. We adopt a conservative approach to provisioning and many of our numbers indicate progression and resilience. Our liquidity is healthy and capital base robust, with capital adequacy ratio of 20.3%. Our immediate focus is on product and process enhancement to enrich the customer experience through greater investment in technology.”
Key Financial Highlights
| Balance Sheet as at 31 December - QAR billion | 2022 | 2021 | Change |
|---|---|---|---|
| Total Assets | 168 | 174 | -4% |
| Financing assets | 118 | 122 | -2% |
| Investments | 32 | 33 | -4% |
| Deposits | 97 | 107 | -9% |
| Total Equity | 24 | 25 | -2% |
| Income Statement for the year - QAR million | 2022 | 2021 | Change |
|---|---|---|---|
| Net operating profit | 4,355 | 3,629 | 20% |
| Operating expenses | 1,282 | 801 | 60% |
| Net Impairment Charges | 1,710 | 1,097 | 56% |
| Net profit attributable to shareholders | 1,344 | 1,718 | -22% |
| Earnings Per Share (QAR) | 0.140 | 0.218 | -36% |
| Rating | Moody’s A1 / Stable | ||
| Group ratios | 2022 | 2021 |
|---|---|---|
| Efficiency (%) | ||
| Cost to Income | 29.4% | 22.1% |
| Cost to Income (excl. merger one-off's) | 26.4% | 21.6% |
| Loan Quality | ||
| Non-Performing loans (QAR million) | 7,295 | 1,922 |
| NPL ratio (%) | 5.99% | 1.57% |
| Capital Management (%) | ||
| Capital adequacy ratio (CAR) | 20.3% | 21.2% |
Cash Dividend
After reviewing the audited financials today, the Board was satisfied with the 2022 financial performance and has recommended (subject to QCB approval) to the Annual General Assembly the distribution of a cash dividend of 10% of the nominal share value, i.e. QAR 0.10 per share.