Ahlibank’s Net Profit Soars By 36 Pc In H1 2012
Ahlibank SAOG, the recently voted No1 Best Bank and No1 Best Performing Company in the Sultanate announced its un-audited results for the six months ended June 30, 2012.
The bank achieved a net profit of RO 11.835 million in the 1st half of 2012 as against a net profit of RO 8.70m reported during the same period in 2011, demonstrating the bank’s ability to record exceptional growth.
These results are a direct consequence of ahlibank’s business strategies and the adoption of a long-term view towards the growth of the business as well as the bank’s commitment towards its customers and stakeholders. The bank continues to grow in a prudent way and has established robust risk management policies and procedures aimed at maintaining quality of its assets without affecting its ability to expand its presence in the market.
The bank’s net operating income for the six months ended June 30, 2012 grew by 37 per cent to RO 22.79 million as compared to RO 16.67 million during the same period last year.
Credit Growth
The total assets at the end of the second quarter 2012 stood at RO 1,052 million representing a growth of 20 per cent as compared to RO 880 million during the same period last year. The loan and advances grew by 21 per cent from RO 730 million in June 2011 to RO 887 million in June 2012.
Funding
In line with the bank’s strategy of maintaining adequate liquidity, reducing concentration risk and building a low cost deposit base, the customers’ deposits grew by 14 per cent from RO 679 million in June 2011 to RO 771 million in June 2012.
Asset Quality
Through its prudent risk management practices, ahlibank continues to maintain the quality of its loan book as reflected in the NPL ratio of 0.98 per cent as of June 30, 2012 (June 30, 2011: 0.62 per cent).
Announcing the bank’s results, Hamdan Ali Nasser al Hinai, Chairman of Ahlibank SAOG commented,” As the Sultanate’s leading bank, ahlibank is committed to catering to the needs of individuals and companies by offering an attractive range of products and services. The bank has made significant progress in building its retail and corporate business, diversifying its portfolio through catering to the demands of the corporate businesses in the Sultanate while carefully differentiating the needs of the premium and private banking segments as well as the SME segment. The bank has successfully launched new and innovative products to develop its franchise and support the economic development needs of the Sultanate of Oman.”
Commenting on the bank’s performance, Abdul Aziz al Balushi, Chief Executive Officer (CEO) of Ahlibank said, “During the first half of 2012 we have continued to deliver stable and robust financial results, reflecting the strength of our business model and cementing our position as the fastest growing bank in the Sultanate. Our commitment towards our customers and stakeholders has been translated into two prestigious awards, the first being the No1 Best Bank of the Sultanate and the second being the No1 Best Performing Company in the Sultanate.
I would like to thank our valuable customers for their confidence in the bank, the shareholders for their continuous support, our strategic partner Ahli United bank and the bank’s staff for the good performance in first half of 2012.”
The first half of 2012
In the first half of 2012, the bank has made several investments to its wide spectrum of products and services to strengthen its core banking systems in order to provide better and efficient services to its clients.
These investments include the acquisition of the Assets and liabilities of Middle East Brokerage Company which will now enable the bank to provide brokerage services to its customers and will help to further develop the same to provide investment banking advisory services.
The bank has also worked industriously to prepare for the launch of its Islamic Banking Services in the coming months following Central Bank of Oman circular last year to allow Islamic Banking in the Sultanate.
The bank is well positioned to provide Islamic financial expertise to diverse segments and is proud to have on board some of the most professional and qualified respected individuals in Islamic finance to have on its Sharia board. In line with its business strategy, the bank recently concluded a Right Issue for RO 25 million to enhance its Tier I capital.
Outlook
“Ahlibank will continue to remain focused on quality and growth in a prudent way. The bank’s target is to increase its return on equity and shareholder value while incidentally improving its ratios without compromising on the quality of its book. Customers are always the bank’s top priority and we will strive to provide them with the highest quality service in the market.”, added the CEO .
Omanobserver
