Masraf Al Rayan achieves QAR 1,560 million net profit during the first nine months of 2016

Transcription

1. Press Release Masraf Al Rayan achieves QAR 1 ,560 million net profit during the first nine months of 2016 Doha October, 17 2016 Masraf Al Rayan, a leading bank in Qatar and the region, announced today a net profit totalled QAR 1,560 million during the first nine months of 2016, compared to QAR 1,514 million made during the same period in 2015, a 3.0% growth rate. Commenting on the results, His Excellency Dr. Hussain Al Abdulla, the Chairman and Managing Director of Masraf Al Rayan, acknowledged the results with optimism deeming them to be within the Board's expectations given current business and market conditions. Mr. Adel Mustafawi, Group Chief Executive Officer at Masraf Al Rayan, stated that the results are consistent with the adopted business plan and reflects a lot of efforts and hard work exerted by all team members in Masraf Al Rayan Group. Mr. Mustafawi noted that the following consolidated financial statements includes Masraf Al Rayan, Al Rayan Bank Plc and other subsidiaries, associates and affiliates: Total assets reached QAR 86,951 million compared to QAR 79,884 million on 30 September 2015, an increase of 8.8%. Financing activities reached QAR 66,979 million compared to QAR 60,330 million on 30 September 2015, an increase of 11.0%. Investments reached QAR 14,494 million, an increase of 6.3%. Customer deposits totaled QAR 56,669 million compared to QAR 52,758 million on 30 September 2015, an increase of 7.4%. 1
2. Shareholders ' equity reached QAR 12,270 compared to QAR 11,541 million on 30 September 2015, an increase of 6.3% Financial Indicators • • • • • • • Return on average assets continues to be one of the highest in the market at 2.44% Return on average shareholders' equity of the bank reached 17.11% compared to 17.63% for the period ended 30 September 2015. Earnings per share for the period reached QAR 2.080 compared to QAR 2.019 for the period ended 30 September 2015. Book value per share reached QAR 16.36 compared to QAR 15.39 as of 30 September 2015. Capital adequacy ratio, using Basel-III standards, reached 17.85% compared to 17.91% as of 30 September 2015. Operational Efficiency ratio (cost to income ratio) was maintained at 19.14%, to remain one of the best ratios in the region and the world. Non-performing financing (NPF) ratio remained at 0.05% reflecting a very strong and prudent credit risk management policies and procedures. Products & Services Masraf Al Rayan remains focused on providing integrated Shariahcompliant financing solutions for retail and businesses customers, as the bank has traditionally provided banking and financing solutions for individuals to meet their increasing different needs. In the corporate sector, Masraf Al Rayan has a wide range of banking and financing solutions, all of which are compatible with the provisions of the Islamic Sharia. 2
3. Masraf Al Rayan focuses also on developing its use of advanced technological resources offering comprehensive banking services via alternative channels such as retial and corporate internet banking , mobile banking App and telephone banking. Masraf Al RayanRayan Promotional Campaign Masraf Al Rayan launched at the end of September 2016 its seasonal promotional campaign extending to the end of this year. The campaign is based on an innovative plan adopted to offer multiple rewards to its loyal customers through a system that permits easy and immediate awarding of benefits to its customers. The main goal of the campaign is to develop long-term relationships between Masraf Al Rayan and its diverse client base both internally and externally, and to reward customer loyalty through innovative solutions. Masraf Al Rayan Rating At the end of August 2016, Moody's Investor Services upgraded Masraf Al Rayan's long term issuer ratings to A1 from A2 and Counterparty Risk (CR) Assessment to Aa3(cr) from A1(cr). The outlook on the long-term ratings has changed to “stable” from positive. The rating upgrade by Moody's took into account MAR's consistently strong asset quality performance (since it commenced operations in 2006) with a current non-performing financing ratio (NPFs analogous to non-performing loans) of around 0.10% of total financing assets. The upgrade ratings reflect consistently strong asset quality performance, strong profitability and capital metrics and continued business diversification as a result of growth and profitability of the UK subsidiary (Al Rayan Bank PLC). MAR has maintained a solid return on assets at around 2.5% since 2011 (2.4% for the first six months of 2016) compared to Qatari banks average return on assets of 1.68% as of June 2016. 3
4. The Agency based its upgrading on the fact that Masraf Al Rayan has maintained strong capitalization levels with tangible common equity (TCE) to risk weighted assets at around 21% as of December 2015. MAR capital levels compare both favorably to the 17% local average and the 13% median for banks' with baa2 baseline credit assessments. Human resources and training Management at Masraf Al Rayan has put in place a human resources strategy to develop all employees across the organization and especially Qataris in management training level to prepare them for leadership roles within the bank. Masraf Al Rayan’s Qatarization level exceeds 30%. Social and environmental responsibility Masraf Al Rayan continues to honour its social responsibility role towards society, through supporting many events and activities that benefit individuals and institutions alike, covering humanitarian, health and sporting activities and programs. 4