Omani lender Ahlibank S.A.O.G. reported a 47 per cent increase to RO 5.92 million in net profit for the period ending March 31, 2012, from RO 4.03 million during the same quarter in 2011.
The financial results of the three months ended March 31, 2012 portrays a strong foundation for the sustainable core earnings momentum as it executes its strategy for the year, the bank said.
Net operating income has increased by 50 per cent to RO 11.28 million as compared to the same period last year and operating expenses (excluding loan impairment net of recoveries) were controlled at RO 3.08 million resulting in a lower cost to income ratio of 27 per cent, in comparison with a much higher 31 per cent as on March 31, 2011. Overall, the net profit after tax rose by 47 per cent to RO 5.92 million as compare to RO 4.03 million in the same period last year.
The total assets at the end of Q1 2012 reached RO 995 million representing a growth of 24 per cent as compared to RO 800 million in Q1 2011. The loans and advances have significantly raised to RO 828 million in Q1 2012, from RO 655 million during the same period last year.
The customers’ deposits have grown by 16 per cent from RO 615 million in Q1 2011 to RO 715 million in Q1 2012.
Loan growth of over 26 per cent has been achieved with a prudent risk management approach and a diversified sectoral basis. The loan book continues to be of very high quality as reflected in the NPL ratio of 1 per cent as of March 31, 2012.
A key objective for this year is the introduction of Islamic Banking services. Towards this goal the bank has already put in place a governance framework, systems and procedures to facilitate the roll-out of Sharia compliant products and services.
Ahlibank is also in the process of acquiring the assets and liabilities of Middle East Brokerage Company LLC, subject to regulatory approvals, in line with its strategic objective to roll out its Investment Banking activities, Oman Observer reported.