(MENAFN- Gulf Times) Masraf Al Rayan has reported an 18% jump in net profit to QR2bn in 2014 and recommended 17.5% cash dividend for shareholders.
Total assets were up 20% to QR80.09bn with financing portfolio growing 40% to QR57.91bn, a bank spokesman said.
Customers' deposits grew 30% to QR62.57bn.
Shareholders equity, before distribution, reached QR11.35bn, registering an 8% growth.
The bank's return on assets continues to be one of the highest in the market at 2.50% and that on equity was 17.64% at the end of December 31, 2014.
Capital adequacy ratio reached 18.36% using Basel-III standards compared to 20.55% on December 31, 2013 based on Basel-II standards.
Earnings per share for the period reached QR2.67 compared to QR2.27 at the end of year 2013.
Operational efficiency ratio, as measured by cost to income ratio, stood at 19.16%, which continues to be one of the best in the region.
Non-performing loans (NPL) ratio of 0.09% continues to be one of the lowest in the banking industry, reflecting a very strong and prudent credit risk management policies and procedures.
"2014 financial results is a strong testimony of the successful implementation of the thoughtful strategic plans of the bank," Masraf Al Rayan Group CEO Adel Mustafawi said.
Bank plans largest ETF, sukuk fund
Masraf Al Rayan is establishing an exchange traded fund (ETF), which will be the largest in the market.
The Shariah-principled lender is also coming out with a 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.
Both the funds would be managed by Al Rayan Investment, a subsidiary of the bank.
The proposed ETF would involve trading Shariah-compliant stocks on the Qatar Stock Exchange tracking Al Rayan Islamic Index, which was introduced last year.
The bank will seek shareholders approval through its annual general assembly meeting, scheduled to be held on March 2.
The local bourse had been toying with the idea of broadening the investment universe as it aims to be a regional hub for capital markets in the wider Gulf region.
ETFs are mostly (but not exclusively) index-based open-ended funds that can be bought and sold as quickly and easily as ordinary shares on a stock exchange. They provide investors with the opportunity to access markets that were previously closed to them. The bourse's first phase saw reforms in the cash market with an aim to enhance the liquidity in the market by introducing liquidity providers as well as securities lending and borrowing. A part of the strategy in this phase includes the launch of ETFs.
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