Masraf Al Rayan has posted a half yearly net profit of QR1.07bn, up 1.15% on H1, 2018.
The bank's assets portfolio continued to exhibit a strong performance at both local and regional levels, while maintaining a low rate of non-performing financing (NPF), which is considered to be “one of the best ratios” internationally.
Masraf Al Rayan continued to have the “best operating efficiency ratio” among local banks, at 23.47%, the bank said, as it announced its H1 financial results in Doha yesterday.
In terms of profitability indicators, Masraf Al Rayan continued to maintain its leading position with a 2.16% return on average assets and a 16.5% return on average equity, despite the increase in the return on customer deposits by 16.7% as a result of increased cost of deposit at both local and global levels.
Masraf Al Rayan chairman and managing director Hussein al-Abdullah said, "The results of the first half of 2019 may not be a huge leap compared to what the Bank had achieved during the first half of last year. The increase in profits was modest due to the increase in borrowing and deposit costs."
Al-Abdullah expressed optimism that the bank will continue to achieve good results and positive growth, driven by Qatar's strong economy.
“The country is working diligently to create new productive projects that would expand the investment base and foster growth in the revenues of the State, thus, ensuring the continuity of the growth cycle.” he added.
Masraf Al Rayan Group chief executive officer Adel Mustafawi expressed satisfaction with the results achieved.
He said that it reflects the “success of the very strong and prudent” credit risk management policies and procedures that focus on “high-quality” asset development while continuing to develop the services provided to customers and improve performance.
He stressed that the bank continued to focus on the domestic and regional leadership of Masraf Al Rayan as well as on strengthening its brand position.
Mustafawi said Masraf Al Rayan’s total assets reached QR102.5bn in H1 compared to QR100.4bn in June 2018, a growth of 2.1%.
Financing activities increased to QR74.8bn in H1 compared to QR73bn in the same period last year.
Investments reached QR20.4bn in H1 compared to QR19.9bn in June 2018, a growth of 3%.
Customer deposits totalled QR64.4bn in the first half of this year compared to QR62.7bn in H1, 2018, a growth of 2.7%.
Shareholders’ equity reached QR12.8bn in H1 this year compared to QR12.2bn in June last year, a growth of 4.8%.
Capital adequacy ratio reached 19.45% in June, in line with Basel III standards and Qatar Central Bank requirements, compared to 18.75% in the same period last year.