DOHA: Masraf Al Rayan recorded a net profit of QR1.42bn for the period ended September 30, 2014, up 14.1 percent compared to a year ago.
Announcing the results Dr Hussain Al Abdulla, the Chairman and Managing Director of the bank, noted Qatar’s huge budget allocations will have a positive contribution on the bank’s performance for this year-end.
Adel Mustafawi, Group Chief Executive Officer said the results reflect the output of the successful implementation by management and staff of the strategic plans and initiatives approved by the Board of Directors of the bank. The total assets reached QR77.8bn compared to QR 66.90bn as of September 30 , 2013, a growth of 16.3 percent. Financing activities reached QR54bn, compared to QR43bn, a growth of 27 percent. Customers’ deposits reached QR59bn, compared to QR50bn, up 18.2 percent.
The bank said the comparative figures for the same period in 2013 do not include the financial results of Islamic Bank of Britain, which was consolidated for the first time in 2014. Non-performing loans ratio of 0.12 percent again continues to be one of the lowest in the banking industry.
Masraf Al Rayan successfully acquired over 98.34 percent of the Islamic Bank of Britain Plc (IBB) during February 2014. Plans to change the bank’s name and brand to Al Rayan Bank are also in progress, and are expected to be completed in January 2015, subject to shareholder approval. The bank is also developing its presence in London, and is planning to open a Knightsbridge branch and a registered head office where its commercial and GCC operations will be based. Its retail banking and operational centre will remain in Birmingham.
IBB has made significant strides towards profitability by reversing monthly losses. IBB is now profitable on a month by month basis since July 2014. The bank expects to end the year on a positive note.
Balance sheet growth has also been strong, with retail property finance balances increasing by 61 percent, as of September 30, 2014. Growth was generated from IBB’s full range of finance products including the Home Purchase Plan (HPP), Buy to Let Purchase Plan (BTLPP) and Commercial Property Finance (CPF). The bank has also increased its investment in sukuk, including participating in the first ever UK Government issued sukuk.
The Peninsula
