BankDhofar posts 16% rise in first half net profit

Muscat: BankDhofar continues its significant growth in all areas during the first half of 2016, with the total assets improving to OMR3.80 billion at the end of June 2016 as compared to OMR3.39 billion in the same period last year, recording a growth of 12.1 per cent year on year.
The net profit of the bank for the first half of 2016 reached OMR26.17 million as compared to OMR22.63 million achieved for the similar period in 2015 showing a strong year-on-year growth of 15.64 per cent, according to a press release.
The bank with its proven fundamentals on quality, prudent lending showed a robust growth of 13.60 per cent to reach OMR2.84 billion in net customer loans, advances and financing as at June 2016 increased from OMR2.50 billion for the same period of 2015. To supplement this loan growth, the customer deposits mobilised, grew by 4.56 per cent to reach OMR2.75 billion at June 2016 compared to OMR2.63 billion in June 2015.
The total operating income including the non-funded income such as fees and commissions, foreign exchange profit and investment grew by 22.57 per cent to reach OMR67.29 million for the half year ended June 2016 compared to OMR54.90 million first half last year.
Operating cost to operating income ratio for first half of 2016 improved to 40.91 per cent from 45.21 per cent first half of 2015. “This reiterates that our revenues are growing faster than cost and the continued efforts for cost optimisation,” said the press release.
Net provisions for loan impairment increased by 135.77 per cent to OMR8.37 million year-to-date June 2016 compared to OMR3.55 million year-to-date June 2015. Impairment of available for sale investments was OMR0.70 million as against OMR0.93 million during last year same period from domestic equity market movements.
The earnings per share (EPS) for first half 2016 is OMR0.013 as compared to OMR0.013 achieved in the first half of 2015.
The bank’s Islamic banking window, Maisarah Islamic Banking Services, continued the trend of showing strong growth in assets, customer deposits and profitability. Year-on-year, total assets increased by 50.39 per cent to OMR358.73 million by June 2016 from OMR238.53 million for the same period of last year.
The gross financing portfolio has grown to OMR259.80 million by end-June 2016 from OMR 174.24 million for June-end 2015, an increase of 49.10 per cent. The strong growth in financing is supported by 35.58 per cent year-on-year increase in customer deposits, reaching OMR195.63 million by June-end compared to OMR144.29 million for the same period of 2015. Non-performing financing continued to stand at nil.
Maisarah Islamic Banking Services reported a strong 61.39 per cent year-on-year increase in net profit before tax of OMR2.069 million compared to a net profit before tax of OMR1.282 million year-to-date June 2015.