Masraf Al Rayan records QR2.02bn net profit

17/01/2018 06:00 AST

Leading Islamic lender Masraf Al Rayan delivered a net profit of QR2.02bn for the year ended December 31, 2017. The Board of Directors, at a meeting held yesterday, recommended a cash dividend distribution of QR 2 per share, representing 20 percent of the paid-up capital. The bank's total assets reached QR102.9bn for the year 2017, compared to QR91.53bn, reported a year ago, up 12.5 percent. Financing activities increased to QR 72.09bn, compared to QR67.63bn as of 31 December 2016, a growth of 6.6 percent.

Dr Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, expressed his satisfaction with the results achieved, considering them acceptable in light of the current situation.

Dr Al Abdulla also expressed his great optimism and confidence in the Qatari economy, which achieved a growth rate of 2.3 percent in 2017 despite the siege, due to the prudent economic measures taken by the Government of Qatar and supported by the rising energy prices in the 2nd half of 2017. He appreciated the efforts made by the executive management and employees at Masraf Al Rayan to implement the strategy adopted by the Board of Directors and the action plan regarding the protection of capital and asset quality, maintaining advanced levels of operational efficiency among banks, preserving the low ratio of non-performing loans, and enhancing the value added for shareholders, customers and other stakeholders. Adel Mustafawi, Group Chief Executive Officer, said the net profit would have increased by 2.3 percent, if the bank had excluded non- recurring investment profits realized from associates during 2016. The profits of Masraf Al Rayan realized from its banking operations also exceeded those achieved in the same period last year by 15.8 percent.

The bank's investments reached QR23.94bn at the end of 2017 and customers' deposits increased to QR62.53bn, compared to QR58.02bn, as of 31 December 2016, up 7.8 percent. Shareholders' Equity before distribution increased to QR13.19bn from QR12.70bn, a growth of 3.8 percent.

Return on average assets continues to be one of the highest in the market at 2.09 percent. Return on average shareholders' equity of the bank, before distribution, reached 15.66 percent. Earnings per share for the year reached QR 2.704, compared to QR 2.767 for 2016. Book value per share, before distribution, reached QR17.59, compared to QR16.94 . Masraf Al Rayan's capital adequacy ratio reached 19.32 percent using Basel-III and QCB standards compared to 18.85 percent from a year ago.

Operational Efficiency ratio (cost to income ratio) is at 21.27 percent and continues to be one of the best in the region. Non-performing Financing (NPF), analogous to non-performing loans, ratio of 0.50 percent continues to be one of the lowest in the banking industry, reflecting a very strong and prudent credit risk management policies and procedures.

According to Moody's Global Investors Services, credit rating for the long-term issue of the bank remains at A1 and Counterparty Risk (CR) Assessment at Aa3 (cr). This comes in light of the continued success of Masraf Al Rayan's prudent strategy, strong financial standing and strong financial performance and all have been by-products of the support of the strong economy of the State of Qatar and the notable supervisory role of the financial sector.

Moody's rating has taken into consideration the quality and strength of Masraf Al Rayan's assets and performance since its inception in 2006 and the low rate of non-performing loans.

The Peninsula