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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Banks perform well despite world economic challenges

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MUSCAT: The Commercial Banks performed well during the first quarter of 2017 despite the difficult economic challenges facing the global banking sector. The net profits of the six commercial banks listed at Muscat Securities Market (MSM) increased to RO 87.4 million compared to RO 85.9 million during the corresponding period last year. The banks also posted growth in their assets, customer deposits and loan portfolios.


The financial statements announced by the banks during the past period showed that the net profits of Bank Muscat grew to RO 44.2 million compared to RO 43.7 million in the corresponding period last year. Bank Sohar net profits increased to about RO 6 million compared to RO 4.1 million during the corresponding period last year.


HSBC Oman net profits increased from RO 3.5 million to RO 5.7 million. National Bank of Oman maintained its profits at RO 13 million. Bank Dhofar profits declined from RO 13.5 million to RO 12.5 million. Ahlibank profits also dropped from RO 7 million to RO 5.2 million.


The banks affirmed that they enjoy good financial position despite the decline in profits witnessed by some of them. Statistics delivered to the Central Bank of Oman (CBO) point out that the total deposits at the banking sector, as of the end of February 2017, grew by 7.1 per cent compared to RO 20.8 billion including RO 13.7 billion as deposits by the private sector.


While the banks affirmed in their quarterly reports that this year will be full of challenges, they affirmed their ability to address these risks through corporate governance and risk management systems, expenditure control, asset quality improvement and doubling efforts to meet the customers’ needs and expectations.


The capital of the six MSM listed commercial banks increased to RO 1.148 billion by the end of March 2017, a growth of RO 78.9 million during the corresponding period last year.


The assets declined to RO 25.3 billion compared to RO 26.5 billion a year ago. Most banks registered growth in assets except for Bank Muscat whose assets dropped from RO12.8 billion to RO 10.8 billion. The assets of the National Bank of Oman increased by RO 200 million to RO 3.6 billion. The assets of Bank Dhofar soared to about RO 4.1 billion compared to RO 3.7 billion in March 2016. Bank Sohar assets grew by RO 100 million to stay at RO 2.6 billion. HSBC Oman assets increased from RO 2.1 billion to RO 2.3 billion. Ahlibank maintained the value of its assets at RO 1.8 billion.


— ONA


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