Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Sohar International posts 17.2 pc growth in 2019 net profits

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Sohar International achieved a net profit of RO 34.406 million for 2019, representing a 17.2 per cent increase over the previous year’s net of RO 29.366 million. The Board of Directors has recommended a cash dividend of 6 per cent for the year, which corresponds to 6 Baizas per share.


Commenting on the financial results, Mohammed Mahfoudh al Ardhi, Chairman of the Board of Directors of Sohar International, stated, “Sohar International’s results have enabled it to become the fastest growing local bank while it pursues to fulfil the clearly defined vision. This is a reflection of the resilience the Omani banking sector has, as it maintains a steady growth in 2019 despite economic headwinds. With the ongoing commitment of the government to continue concentrating on infrastructure projects along with investments in the key sectors identified in the economic diversification plan, we expect to see a continued demand for financing in the near future despite current levels oil prices.”


The Bank’s Net interest income for the year increased by 23.9 per cent to RO 70.191 million (2018: RO 56.651 million). Operating income increased by 10.8 per cent to RO 104.659 million, (2018: RO 94.438 million). Operating expenses increased by 13.5 per cent to RO 45.286 million (2018: RO 39.885 million), reflecting our continued investment in people and core infrastructure. Operating profit increased by 8.8 per cent to RO 59.373 million (2018: RO 54.553 million).


Sohar International’s total assets increased for the year by 15.1 per cent to RO 3.505 billion (2018: RO 3.046 billion). Net loans and advances increased by 9.0 per cent to RO 2,454 million (2018: RO 2,252 million). Customer deposits increased by 15.3 per cent to RO 2,097 million (2018: RO 1,818 million). As at end of October 2019, the Bank’s market share of private sector credit increased to 11.38 per cent from 10.48 per cent in December 2018 and its share of private sector deposits increased from 7.93 per cent to 8.60 per cent over the same period.


The ratio of non-performing loans and advances to gross loans and advances increased from 3.29 per cent in Dec 2018 to 4.82 per cent in Dec 2019 reflecting the deterioration in asset quality of certain corporate customers. The Bank continues to focus on the proactive management of credit exposures in line with its credit risk management policies.


Commenting on the results, Chief Executive Officer of Sohar International Ahmed al Musallami remarked, “2019 has been a momentous year for Sohar International as we continued to stride upon our well-defined 5-year strategy while achieving several milestones on the way. With a clear purpose to help people win in all aspects of life, we had set in place key initiatives in year 2019 that have been successfully accomplished. From investing in our digital and physical infrastructure to investing in our people, we are gearing up Sohar International and furthering our capabilities to align ourselves alongside Oman’s vision 2040.”


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