Doha, 28 October 2019
Masraf Al Rayan achieved a net profit of QAR 1,653 million for the period ended 30 September 2019, an increase of 1.32% compared to the corresponding period in the previous year. The Bank's assets grew by 5.5% to reach QAR 105,050 million as of 30 September 2019, a strong performance while maintaining one of the lowest non-performing financing (NPF) ratios internationally (0.66%). Operating efficiency ratio was at 23.61%, continuing to be the best among local banks.
In terms of profitability, 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.
In his comments on the results, His Excellency Dr. Hussein Al Abdullah, Chairman and Managing Director, said: “The results are satisfactory despite achieving modest profit growth during the period, due to several factors including high borrowing and deposit costs.”
H. E. Dr Hussein Al Abdullah expects the results for the year to be in line with what has been planned and acted upon by the Board of Directors and Executive Management, driven by the strength of the Qatari economy, its continued growth, and the encouragement of investments in the State of Qatar at the local and foreign levels.
Mr. Adel Mustafawi, Group Chief Executive Officer, expressed his satisfaction with the results achieved, reflecting 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.
Mr. Mustafawi presented the financial statements for the period ended 30 September 2019, which demonstrated the Bank's performance as follows:
- Total assets reached QAR 105,050 million compared to QAR 99,603 million as of 30 September 2018, a growth of 5.5%
- Financing activities increased to QAR 75,563 million compared to QAR 74,422 million as of 30 September 2018, a growth of 1.5%
- Investments reached QAR 21,343 million compared to QAR 19,681 as of 30 September 2018, a growth of 8.4%
- Customer deposits increased to QAR 67,017 million compared to QAR 64,477 million as of 30 September 2018, a growth of 3.9%
- Total shareholders' equity reached QAR 13,431 million compared to QAR 12,834 million as of 30 September 2018, a growth of 4.7%
Masraf Al Rayan Products:
- Return on average assets continues to be one of the highest in the market at 2.18%
- Return on average shareholders’ equity reached 16.51%
- Earnings per share reached QAR 0.220 compared to QAR 0.218, for the period ended 30 September 2018
- Book value per share reached QAR 1.79 compared to QAR 1.71 as of 30 September 2018
- Capital adequacy ratio reached 19.70%, in line with Basel III standards and Qatar Central Bank requirements, compared to 19.04% as of 30 September 2018
- Operational efficiency ratio (cost to income ratio) is 23.61%
- Non-performing financing (NPF) ratio is kept at a low level of 0.66%, 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 retail 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 places great importance in following the best practices of good governance. The Bank complies with instructions issued by the supervisory authorities in this regard. Masraf Al Rayan believes that good governance is the key to gaining 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.
In view of the unchanged market conditions, the Board of Directors of Masraf Al Rayan has taken its final decision to close down Al Rayan Financial Brokerage and liquidate its business. The Board assigned the Group Chief Executive Officer or whomever he may authorize to take appropriate actions and obtain the necessary approvals from the regulatory authorities to implement the resolution.