Doha: Masraf Al Rayan announced a net profit of QR1.08bn for the period ending 30 June 2020, an increase of 0.50 percent compared to the same period last year.
Commenting on the results, H E Ali bin Ahmad Al Kuwari, Chairman and Managing Director, 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 has 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 and blocking movement among countries, and low consumer spending, which affected many productive and non-productive economic activities and had negatively impacted the financial and business markets.”
Al Kuwari added; “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 the State 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 QR75bn to support those who were affected.”
Al Kuwari, also touched upon the joint press release issued on 30 June 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 asserted that the potential merger would be regarded as a solid financial entity with higher liquidity, with total assets exceeding QR164bn ($45bn). The new entity will have total equity of more than QR19bn ($5.2bn), and expected to contribute positively to the economic development in the State of Qatar through financing development initiatives in line with Qatar’s 2030 vision.
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.
Adel Mustafawi, the Group CEO, expressed an opinion consistent with Al Kuwari, describing the results as a true reflection of the strong ratios the bank continues to maintain in all of its key financial indicators in these exceptional circumstances.
Masraf Al Rayan’s total assets reached QR109bn in H1, 2020 compared to QR102bn, up 6.6 percent compared to same period in 2019. Financing activities reached QR78bn from QR74bn, an increase of 4.4percent. The bank’s investments reached QR21bn fromQR20bn as of 30 June 2019, an increase of 4.8 percent. Customer deposits increased to QR67bn, up 4.7 percent compared to QR64bn as of 30 June 2019. Shareholders ‘ equity reached QR13bn from QR12.8bn, an increase of 3.4 percent.
The bank’s 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 and earnings per share reached QR0.144. Book value per share before distribution reached QR1.77 compared to QR1.71 as of 30 June 2019. Capital adequacy ratio, using Basel-III standards, reached 19.70 percent compared to 19.45 percent as of 30 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 procedures.
Commitment to the Society and the Environment Masraf Al Rayan continues its commitment to fulfilling its obligation towards the environment and the society, through its active contributions to various sectors.
Masraf Al Rayan ensures that measures are taken to enhance the response to COVID-19, launching initiatives geared towards the adequacy of pandemic preventive measures to promote the health and safety of employees and customers, and implementing strict health and safety measures in line with directives received from the government and health authorities.
