Bank Sohar posts 46.60pc growth

MUSCAT, OCT 29 - Bank Sohar has posted increases in net profit, net operating income and loans for the nine months ended September 30, 2017.

The Bank’s net profit for the nine months ended September 30, 2017 amounted to RO 18.976 million as compared to RO 12.944 million during the same period in 2016, a growth of 46.60 per cent. The Bank is continuing with its efforts to achieve sustainable and profitable growth despite the volatile liquidity situation in the domestic market as a result of low oil prices and a decline in government spending.

Commenting on the bank’s robust financial performance, Sasi Kumar, Acting CEO, said, “The growth we have achieved in the last nine months comes as a result of our strategic planning and insight into local market dynamics. Staying ahead of and in tune with banking trends has helped us create a clear roadmap to navigate the volatility of current economic conditions and maintain consistency in product innovation and service delivery. The Bank’s strong performance in the face of challenging odds can also be attributed to healthy customer relations driven by our customer-centric strategies. Going forward, we intend to keep the focus on developing market leading products, digitised banking solutions and expanding our operational network.”

The Bank’s total operating income increased by 3.40 per cent from RO 53.069 million in the first nine months of 2016 to RO 54.871 million for the same period in 2017. Net operating income increased by 1.21 per cent from RO 28.429 million in the first nine months of 2016 to RO 28.772 million in 2017. During the first nine months of 2017, other operating income grew by 3.77 per cent to RO 17.928 million compared to RO 17.277 million in the first nine months of 2016. The bank is focused on its strategy and on continuing its efforts to optimally deliver and achieve sustainable growth.

Gross loans of the Bank have increased by 9.72 per cent from RO 1.869 billion as at 30 September 2016 to RO 2.050 billion as at 30 September 2017.

Net loans and advances grew by 9.62 per cent to RO 2.004 billion as at 30 September 2017 from RO 1.828 billion as at 30 September 2016. Total assets grew by 4.97 per cent from RO 2.474 billion as at 30 September 2016 to RO 2,597 billion as at 30 September 2017.

Customer deposits declined marginally by 1.15 per cent to RO 1.564 billion as at 30 September 2017 compared to RO 1.582 billion as at 30 September 2016. The Bank’s market share of private sector credit was 9.73 per cent as at 31 August 2017 compared to 9.48 per cent as at 30 September 2016, while its share of private sector deposits was 8.68 per cent as at 31 August 2017 compared to 8.76 per cent as at 30 September 2016.

As planned the Bank successfully closed the additional Tier 1 issue of perpetual capital securities of RO 100 million during the third quarter with oversubscription.

The Capital Market Authority approved the results of the issue and agreed the allotment to successful subscribers in line with the terms and conditions of the prospectus.

It was subsequently listed on the Muscat Securities Market during September 2017.