In terms of profitability indicators, Masraf Al Rayan continued to maintain its leading position with a 2.16% return on average assets and a 16.50% return on average equity, despite the increase in the return on customer deposits by 16.7% as a result of increased cost of deposit at both local and global levels.
"The results of the first half of 2019 may not be a huge leap compared to what the Bank had achieved during the first half of last year," commented His Excellency Hussein Al Abdullah, Chairman and Managing Director. He added that: "The increase in profits was modest due to the increase in borrowing and deposit costs."
However, H.E. Al Abdullah expressed optimism that the Bank will continue to achieve good results and positive growth, driven by Qatar's strong economy. “The country is working diligently to create new productive projects that would expand the investment base and foster growth in the revenues of the State, thus, ensuring the continuity of the growth cycle.” he added.
Mr. Adel Mustafawi, Group Chief Executive Officer, expressed his satisfaction with the results achieved. He said that it reflects the success of the very strong and prudent credit risk management policies and procedures that focus on high-quality asset development while continuing to develop the services provided to customers and improve performance. He stressed that the Bank continues to focus on the domestic and regional leadership of Masraf Al Rayan as well as on strengthening its brand position.
Mr. Mustafawi presented the financial statements for the first half of 2019, which demonstrate the Bank's outstanding performance as follows:
- Total assets reached QAR 102,543 million compared to QAR 100,455 million as of 30 June 2018, a growth of 2.1%
- Financing activities increased to QAR 74,800 million compared to QAR 73,088 million as of 30 June 2018, a growth of 2.3%
- Investments reached QAR 20,496 million compared to QAR 19,902 million as of 30 June 2018, a growth of 3.0%
- Customer deposits increased to QAR 64,412 million compared to QAR 62,701 million as of 30 June 2018, a growth of 2.7%
- Shareholders’ equity reached QAR 12,859 million compared to QAR 12,267 million as of 30 June 2018, a growth of 4.8%
Masraf Al Rayan Products
- Return on average assets continues to be one of the highest in the market at 2.16%
- Return on average shareholders’ equity reached 16.50%
- Earnings per share amounted to QAR 0.144 compared to QAR 0.142 for the period ended 30 June 2018
- Book value per share reached QAR 1.71 compared to QAR 1.64 as of 30 June 2018
- Capital adequacy ratio reached 19.45%, in line with Basel III standards and Qatar Central Bank requirements, compared to 18.75% as of 30 June 2018
- Operational efficiency ratio (cost to income ratio) is 23.47%
- Non-performing financing (NPF) ratio is kept at a low level of 0.74%, reflecting the strong performance of our credit risk management as well as prudent policies and procedures
Masraf Al Rayan continues to focus on providing Shariah-compliant
financing solutions to individual and corporate clients to meet their growing needs.
Masraf Al Rayan also focuses on the development of technology-based
banking services made available in various forms and applications, ensuring
the best customer service at all times. Masraf Al Rayan is also 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.
Human Resources and Training
The management of Masraf Al Rayan provides all the necessary training and development for the Bank’s employees in general,
and Qataris in particular, so that they can serve customers in a manner that achieves the highest customer satisfaction.
Corporate Governance and social responsibility
Masraf Al Rayan is keen to comply and follow the
best practices of good governance. The Bank applies all instructions issued by the supervisory authorities in this respect. Masraf Al Rayan believes that good governance is the key to gaining the confidence of the market, shareholders and investors. The Bank emphasizes that governance should include factors of continuity to enhance trust in a bank. It intends to maintain a successful and competitive presence capable of meeting existing and reasonably possible challenges. This high profile view includes the role of Masraf Al Rayan as a financial institution within the Qatari economy and participation in the success of Qatar National Vision 2030, and its role as a financial institution that provides Islamic banking services to individuals, companies, institutions and
government and semi-governmental entities, as well as its responsibility towards the community and the environment in which it operates.