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Masraf Al Rayan net profit rises 3.6% to QR2.07bn in 2015

Masraf Al Rayan net profit rises 3.6% to QR2.07bn in 2015

DOHA: Masraf Al Rayan has recorded a net profit of QR2.07bn for the full year 2015, an increase of 3.6 percent compared to 2014.

The Board of Directors, at a meeting held yesterday, recommended a dividend distribution of QR 1.75 per share, or 17.5 percent of the paid-up capital, pending approval from the General Assembly of shareholders after obtaining the Qatar Central Bank (QCB) nod.

Commenting on the results, Dr Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, said; “Masraf Al Rayan performance continues to remain strong. We are prudent in our strategy, risk management and decisions making. We continue to be stable and successful despite challenging environment.” He also praised the considerable efforts made by Masraf Al Rayan team in 2015 to achieve these results.

Adel Mustafawi, Group Chief Executive Officer at Masraf Al Rayan attributed the solid performance to the bank’s strategic plans. The will and calculated decision made to place Masraf Al Rayan at higher ranks at the local and regional levels, he said.

Mustafawi noted that the published consolidated financial statements include Masraf Al Rayan along with the group subsidiaries and affiliates, including the financial statements of Al Rayan Bank Plc, which has achieved a net profit of £10m, equivalent to QR57m.

The bank’s total assets rose to QR83bn from QR80.09bn, a 3.7 percent year-on-year growth. Financing activities increased to QR62bn, compared to QR57bn, up 7.5 percent from a year ago. Investment increased to QR15bn from QR14bn, up 2.0 percent. Customers’ deposits decreased to QR55bn from QR62bn, down 11.1 percent.

Shareholders equity, before distribution, reached QR12bn from QR11bn, up 6.1 percent.

Earnings per share for the year 2015 reached QR2.764 compared to QR2.670 at the end of year 2014. Non-performing loans (NPL) ratio of 0.09 percent continues to be one of the lowest in the banking industry, reflecting a very strong and prudent credit risk management policies and procedures.

In August 2015, Moody’s Investors Service, the renowned credit rating international agency has affirmed Masraf Al Rayan A2/Prime-1 issuer ratings and baa3 baseline credit assessment (BCA) and adjusted BCA. At the same time, the agency changed the outlook on the bank’s long term issuer ratings to positive from stable. This confirmation reflects the bank’s continued strong core financial fundamentals with consistently strong asset quality performance, strong and stable profitability and solid capital safeguards.

he change in the outlook to positive from stable reflects the ongoing improvements in Masraf Al Rayan’s business and geographic expansion, including the growth and transition to profitability of its recently acquired subsidiary Al Rayan Bank PLC based in UK, coupled with the agency’s expectation that the bank will continue to maintain its strong overall financial performance going into 2016.

Masraf Al Rayan continued on its quest to come up with innovative Sharia compliant products and services to achieve the highest standards for customer comfort and expediency, to finish 2015 strongly as the big winner of the World Islamic Banking Conference excellence Awards in performance in the financial services and Islamic banking sector, at the local, regional and global levels.