Masraf Al
Rayan Reports QAR 1,084 Million Net Profit in 1st Half 2020
13 July 2020
Masraf Al
Rayan announced its financial results for the six months ended 30 June
2020 as the Bank has reported QAR 1,084 million, an increase of 0.5%
compared to the results of the equivalent quarter last year.
Major financial highlights as at the end of the period:
Ø
Total assets amounted QAR 109,339 million, compared to QAR 102,543
million as at the end of the equivalent half last year, an increase of
6.6%.
Ø
Receivables from financing activities amounted QAR 78,104 million,
compared to QAR 74,800 as of 30 June 2019, a growth of 4.4%.
Ø
Investments value estimated at QAR 21,470 million versus QAR 20,496
million for the same period last year, a growth of 4.8%.
Ø
Customer deposit increase also by 4.7% from QAR 64,412 million (30
June 2019) to QAR 67,417 million.
Ø
Shareholders’ equity, before the payment of dividends, amounted to
QAR 13,294 million compared to QAR 12,859 million as at the end of the 1st
half 2019, an increase of 3.4%.
Financial indicators:
Ø
Return on average asset ratio maintained a leading position in the
financial market and reached 2.01%.
Ø
Return on average shareholders’ equity reached 15.93%.
Ø
The share book value, before dividends distribution, amounted QAR
1.77 against QAR 1.71 as at 30 June 2019.
Ø
Capital adequacy stood at 19.70% as per Basil 3 standards, compared
to 19.45% as of 30 June 2019.
Ø
The efficiency of operation (expenses to revenues) were 22.65% to
record one of the best ratios across the region.
Ø
Ration of non-performing loans (NPL) stood at 0.94%, which is
considered the lowest in the sector and further reflects the efficient
management of the risks and strong implementation of policies and
procedures.
Mr. Ali bin Ahmed Al Kuwari, Chairman and
Managing Director, commented that 2020 was never a normal year. From the
beginning, it witnessed a number of crises on the economic and health
level. The fall of oil prices had its tremendous impacts on the
financial markets. Then came coronavirus pandemic to curb the activities
of individuals and economic activities in whole. Impacted by health
quarantine, countries’ lockdowns and lower consumer spending. All of
that has caused damage to the economic, productive and non-productive
activities as well as negative impact on the financial markets and
businesses.
Mr. Al Kuwari further added, “Despite the
exceptional conditions, the bank has maintained its steady performance
during the 1st half this year achieving considerable results.
That was mainly attributed to the sage resolutions taken by the
government of The State of Qatar to mitigate the damages sustained by
the private sector as a result of coronavirus pandemic of which most the
government stimulus to the private sector worth QAR 75 billion to
bailout the harmed businesses”.
On the other hand, Mr. Al Kuwari touched on the join press release
of 30 June 2020 regarding the proposed merger between Masraf Al Rayan
and Gulf Commercial Bank ‘Al Khaliji’ having entered into negotiations
for a potential merger to come up with a larger and stronger financial
institution. He confirmed that the new entity, in case the merger took
place, will enjoy a solid financial position and higher liquidity. The
total assets of the new entity would exceed QAR 164 billion (USD 45.0
billion), while the total shareholders’ equity to be in excess of QAR 19
billion (USD 5.2 billion). This will enable the new entity to better
contribute to the success of the economic growth in The State of Qatar
and further participate in funding new development initiatives in line
with Qatar Vision 2030.
The Chairman added, that the new entity will maintain its strategy
to keep all its transactions in compliance with Sharia. He further noted
that the potential merger is subject to the approval of Qatar Central
Bank, Qatar Financial Markets Authority, Ministry of Commerce and
Industry and other respective regulatory bodies. It will be also
presented to the shareholders of the two banks (AGMs) for approval after
the required due diligence processes.
On the financial results for the 1st half 2020, Mr. Adel
Mustafawi, Group’s CEO stated that the results were favorable in all
measures under such conditions. The results came following the
exceptional efforts made by the teamwork of the bank to maintain
remarkable ratios of the financial indicators as the bank used to
achieve over past years.