Saturday, August 15, 2020
Home /  Business  /  Masraf Al Rayan posts net profit of QR1.084 bn in H1

Masraf Al Rayan posts net profit of QR1.084 bn in H1

Masraf Al Rayan posts net
profit of QR1.084 bn in H1

Tribune News Network
Masraf Al Rayan on Monday announced that the bank posted a net profit of QR1.084 billion in the first six months of 2020, an increase of 0.5 percent compared to the same period last year.
Commenting on the results, Masraf Al Rayan Chairman and Managing Director HE Ali bin Ahmad Al Kuwari said, “The year 2020 is considered an extraordinary year. It has witnessed several crises from early on at the economic and health levels. Low oil prices impacted the global markets, then came the COVID-19 pandemic and the resulting quarantine that placed huge restrains on individuals and economic activities in its entirety, blocking movement among countries, low consumer spending, which affected many productive and non-productive economic activities and had negatively impacted the financial and business markets.”
Kuwari said, “In spite of these extraordinary circumstances, Masraf Al Rayan maintained its steady performance during the first half of this year, achieving notable results, under the prudent decisions made by the government of Qatar to mitigate the damage incurred within the private sector caused by the COVID-19 pandemic. The most important of which is the allocation of QR75 billion to support those who were affected.”
Touching upon the joint press release issued on June 30, 2020 by Masraf Al Rayan and Al Khaliji Commercial Bank (al Khaliji) wherein the two banks expressed their intent to enter into preliminary negotiations on a possible merger to establish a larger and stronger financial institution, he said, the potential merger would be regarded as a solid financial entity with higher liquidity with total assets exceeding QR 164 billion ($ 45 billion).
“The new entity will have total equity of more than QR19 billion ($5.2 billion), and expected to contribute positively to the economic development in Qatar through financing development initiatives in line with Qatar’s 2030 vision,” he said.
He further indicated that the merged entity would maintain all of its dealings in compliance with the Islamic Shari’a principles.
The potential merger is subject to the approval of the Qatar Central Bank, Qatar Financial Markets Authority, the Ministry of Commerce and Industry and other relevant official bodies, and the approval of shareholders in both Masraf Al Rayan and Al Khaliji Commercial Bank, after completing a detailed financial and legal due diligence.
Commenting on the results, Masraf Al Rayan Group CEO Adel Mustafawi said, “The results are a true reflection of the strong ratios the bank continues to maintain in all of its key financial indicators in these exceptional circumstances.
According to the financial statements for the first half of 2020, total assets of the bank reached QR109.339 billion compared to QR102.543 billion as of June 30, 2019, an increase of 6.6 percent
Financing activities reached QR78.104 billion compared to QR74.80 billion as of June 2019, an increase of 4.4 percent.
Investments reached QR 21.470 billion compared to QR20.496 billion as of June2019, an increase of 4.8 percent
While customer deposits increased 4.7 percent to QR67.417 billion compared to QR64.412 billion as of June 2019, shareholders equity reached QR13.294 billion compared to QR12.859 billion as of 30 June 2019 registering an increase of 3.4 percent.
Return on average assets continues to be one of the highest in the market at 2.01 percent. Return on average shareholders equity of the bank reached 15.93 percent.
While earnings per share reached QR0.144, book value per share before distribution reached QR1.77 compared to QR1.71 as of June 2019.
Capital adequacy ratio, using Basel-III standards, reached 19.7 percent compared to 19.45 percent as of June 2019. Operational efficiency ratio (cost to income ratio) stood at 22.65 percent and continued as one of the best in the region.
Non-performing financing (NPF) ratio of 0.94 percent is the lowest in the banking sector reflecting very strong and prudent credit and risk management policies and