- Al Rayan Bank reported a quarterly net income of 407.5 million riyals, marking a slight increase of 0.4% year-on-year.
- Earnings per share remained constant at 0.0440 riyals compared to the same period last year.
- Net operating profit decreased by 5.5% year-on-year, reaching 864 million riyals.
- Operating expenses slightly decreased by 0.4%, totaling 239 million riyals.
- There was a significant reduction in impairments, down by 19%, amounting to 211 million riyals.
- The bank’s cost to income ratio increased slightly to 27.7% from 26.3% a year earlier.
- Non-performing loans totaled 6.23 billion riyals, reflecting a decrease of 4.7% year-on-year.
- The non-performing loans ratio improved, decreasing to 5.37% compared to 5.86% in the previous year.
- The capital adequacy ratio showed a strong position at 25.5%, improving from 23.6% year-on-year.
- Analyst recommendations include 1 buy, 3 holds, and 1 sell.
A look at Masraf Al Rayan QSC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Masraf Al Rayan QSC shows a promising long-term outlook. The company scores high in the Value category, indicating strong fundamentals that may appeal to value-oriented investors. Additionally, Masraf Al Rayan QSC‘s Dividend score reflects a decent outlook for potential dividends. However, the Growth and Momentum scores are relatively lower, suggesting moderate growth prospects and momentum in the market. With a Resilience score of 3, the company demonstrates a level of stability in uncertain market conditions.
Overall, Masraf Al Rayan QSC, a financial institution that follows Islamic principles in its banking services, appears to be well-positioned for the future. Investors looking for a company with solid value and dividend potential may find Masraf Al Rayan QSC a compelling option, despite slightly lower scores in growth and momentum.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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