Muscat: Bank Sohar has achieved a robust 43.9 per cent growth in net profit at OMR5.99 million for the first quarter of 2017, against OMR4.16 million achieved for the same period of last year. The bank’s remarkable financial performance follows completion of ten years of banking operation in the Sultanate.
The results reflect considerably robust figures owing to the bank’s strong customer oriented approach and astute strategies.
“Despite challenging market conditions, we continue to achieve sustainable and profitable growth, which reflects our strong position in the industry as a whole. It leads us to embrace an optimistic outlook for the coming year and stay focused on developing products that offer the best financial solutions to our customers. As we complete a decade of successful operations within the Sultanate, we pay tribute to the wise leadership of our board of directors and reiterate our thanks to our loyal customers for making the journey enriching, meaningful and fulfilling,” said Sasi Kumar, acting chief executive officer, Bank Sohar, while commenting on the results.
The bank’s operating profit for the period ended March 31, 2017 increased by 6.9 per cent to OMR6.63 million up from OMR6.20 million for the same period in 2016. Operating income increased by 4.9 per cent from OMR14.55 million for the first quarter of 2016 to OMR 15.26 million for the same period in the current year.
At the same time, other operating income excluding available for sale (AFS) investment losses and dividend income grew by 84.5 per cent from OMR3.17 million for first quarter of 2016 to OMR5.85 million for first quarter of 2017. Operating expenses increased by only 3.3 per cent from OMR8.35 million for the first quarter of 2016 to OMR8.63 million for the same period in 2017, which reflects the efficiency at which the bank operates.
Bank Sohar continues to win credibility and trust from its customers, with deposits as of March 31, 2017 increasing by 18.1 per cent to OMR1.68 billion compared with OMR1.42 billion for the same period last year. The bank’s market share of private sector credit was 10 per cent as of February 2017 compared to 9.2 per cent as at March 2016, while its share of private sector deposits was 9.4 per cent as at the end of February 2017 compared to 7.8 per cent as of March 31, 2016.
“At Bank Sohar, we reiterate our commitment to create superior banking solutions in a constantly evolving economic and financial environment. To further strengthen the foundations for growth and stability in the coming years and to abide by regulatory requirements, plans are in place to raise additional Tier 1 capital as we step into a new era of banking excellence,” Sasi Kumar added.
Bank Sohar’s strong financial performance for the first quarter of 2017 is directly proportionate to its customer driven strategies and the suite of innovative products it launched to commemorate a decade of providing banking excellence in Oman. Most notable among these is the Al Mumayaz Savings Scheme 2017 and the new Excel Visa Signature Credit Card.