DOHA: Masraf Al Rayan, a leading bank in Qatar and the region, reported a net profit of QR1.56bn for the first nine months of 2016, compared to QR1.51bn, a 3 percent increase from a year ago.
The bank’s total assets reached QR86.9bn from QR79.8bn on 30 September 2015, an increase of 8.8 percent. Financing activities rose to QR66.9bn from QR60.3bn, a year-on-year increase of 11.0 percent. Investments increased 6.3 percent to QR14.4bn Customer deposits totaled QR56.6bn, up 7.4 percent compared to QR52.7bn during the corresponding period of 2015.
Commenting on the results, Dr. Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, said the results reflected the Board’s optimism and expectations given current business and market conditions.
Adel Mustafawi, Group Chief Executive Officer at Masraf Al Rayan, stated that the results are consistent with the adopted business plan and reflects a lot of efforts and hard work exerted by all team members in Masraf Al Rayan Group. Mustafawi noted the consolidated financial statements included Masraf Al Rayan, Al Rayan Bank Plc and other subsidiaries, associates and affiliates.
The bank’s return on average assets continues to be one of the highest in the market at 2.44 percnet. Return on average shareholders’ equity of the bank reached 17.11 percent compared to 17.63 percent for the period ended 30 September 2015. .Earnings per share for the period reached QR 2.080 from QR 2.019. Book value per share increased to QR 16.36 from QR15.39.
Capital adequacy ratio, using Basel-III standards, reached 17.85 percent from 17.91 percent as of 30 September 2015.
Masraf Al Rayan’s operational efficiency ratio (cost to income ratio) was maintained at 19.14 percent, to remain one of the best ratios in the region and the world. Non-performing financing (NPF) ratio remained at 0.05 percent reflecting a very strong and prudent credit risk management policies and procedures.
At the end of August 2016, Moody’s Investor Services upgraded Masraf Al Rayan’s long term issuer ratings to A1 from A2 and Counterparty Risk (CR) Assessment to Aa3(cr) from A1(cr).
The outlook on the long-term ratings has changed to “stable” from positive. The rating upgrade by Moody’s took into account the bank’s consistently strong asset quality performance.
