(MENAFN- The Peninsula) Masraf Al Rayan recorded a solid net profit of QR2bn for the full-year 2014, reflecting a 17.6 percent increase compared to 2013. The bank's board recommended a dividend distribution of QR1.75 per share, or 17.5 percent of the paid-up capital.
The Board of Directors approved the setting up of two investment funds, subject to approval by the official authorities. First one, is an exchange traded fund (ETF) that will be the largest in the market, trading Shariah-compliant stocks on Qatar Exchange wherein tracking Al Rayan Islamic Index. Second, is a Shariah-compliant Sukuk trading fund (income generating fund), for investment in fixed income markets with target yield exceeding earnings from deposit accounts and shall be distributed annually to investors. Al Rayan investment (ARI) will manage both funds.
Dr Hussain Al Abdulla, the Chairman and Managing Director of the bank, described the results as an upward performance trail, seeing them as a natural outcome of the prudent implementation of the strategy set by the Board of Directors.
Adel Mustafawi, Group Chief Executive Officer at Masraf Al Rayan, described 2014 financial results as a strong testimony of the successful implementation of the thoughtful strategic plans set by the Board and carried out by management and staff with the resolve to achieving better results year after year.
Mustafawi noted that the 2014 year-end consolidated statements include Masraf Al Rayan along with the group subsidiaries and affiliates. They also include the financial statements of Al Rayan Bank Plc, the new name adopted on 10 December 2014 to rebrand the Islamic Bank of Britain (IBB) which was acquired by Masraf Al Rayan in early 2014. Al Rayan Bank Plc has now turned around into profitability after 10 years of losses.
The bank's total assets reached QR80bn compared to QR66bn as of December 31 2013, a growth of 20.4 percent. Financing activities reached QR57bn, up 39.7 percent from a year ago. Investment decreased by 10.6 percent, from QR16bn to QR14bn, due to maturity of Government Sukuk in 2014.
Shareholders Equity, before distribution, reached QR11.35bn compared to QR10.5bn in 2013. Return on Assets continues to be one of the highest in the market at 2.50 percent.
Return on Shareholders' Equity of the bank reached 17.64 percent compared to 16.18 percent at the end of year 2013. Earnings per share for the period reached QR2.670 compared to QR2.270 at the end of year 2013.
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