Oman Arab Bank net profit increases to OMR29m

Business Wednesday 09/March/2016 17:38 PM
By: Times News Service
Oman Arab Bank net profit increases to OMR29m

Muscat: Oman Arab Bank (OAB) said the bank posted a net profit of OMR29.01 million for 2015 compared to OMR28.40 million reported in 2014. The bank registered strong income and balance sheet growth in 2015 while strategic investments were made to upgrade the bank’s infrastructure and build sustainable business momentum, according to a bank release.
Net interest income rose by 12 per cent last year to reach OMR49.13 million while non-interest income stood at OMR30.62 million, a 9 per cent growth over the previous year. The increase in top line income was largely due to a robust growth in balance sheet during the year.
The bank’s net loans and advances increased by 21 per cent to reach OMR1.52 billion while customer deposits also rose by 9 per cent to reach OMR1.6 billion by end-December 2015. Operating expenses for 2015 were higher at OMR43.52 million compared to OMR37.42 million for the same period in 2014. The capital adequacy ratio of the bank was 14.28 per cent by December 2015, which is well above the regulatory requirement of 12.625 per cent.
The bank’s Sharia-compliant window, Al Yusr, also showed positive growth with the bank’s Islamic financing receivables more than doubling to OMR49.9 million as of December 31, 2015 compared to OMR20.83 million as of December 31, 2014. Customer deposits in the Islamic banking segment also increased significantly to OMR49.39 million by the end of December 2015 compared to OMR12.49 million in the same period of the previous year. Al Yusr has expanded to a nationwide footprint of seven branches located at Muscat, Al Buraimi, Sohar, Ibra, Nizwa and Salalah.
“Our 2015 financial performance demonstrates Oman Arab Bank’s underlying ability to continue growth while managing risks in challenging conditions within the region,” said Amin Al Husseini, chief executive officer, Oman Arab Bank. “In 2015, we have commenced a transformational journey to enhance customer experience through our delivery channels, including brick and mortar branches. We are investing in our franchise, to build on our already strong heritage of trust”.
“Oman Arab Bank has consistently delivered business growth over three decades which has advanced us into a reliable, trusted and accomplished institution that adds value to customers, employees, shareholders and the wider community,” he added.
OAB was established in 1984 following the acquisition of Arab Bank's branches in the Sultanate. For over 30 years, Oman Arab Bank has been an active contributor to the Sultanate’s ongoing growth and development by offering customers and organisations innovative solutions complemented by in-depth local and international expertise. Today, OAB provides a comprehensive suite of products and services in retail banking, corporate and project finance, investment banking, trade finance and most recently, Islamic banking. The bank has provided financing for setting up major projects in Oman that have a wider economic impact including power generation, water desalination, aviation and infrastructure to name but a few.
Currently, the bank operates more than 65 branches and offices, and more than 123 automatic teller machines and cash deposit machines in high footfall locations across the Sultanate that are supported by Arab Bank’s 600 branches spanning five continents. The bank’s principal shareholders are Oman International Development and Investment Company (51 per cent) and Arab Bank PLC (49 per cent).