Bank Sohar’s H1 Profit Surges 49.55pc To RO 10.361 Million

Delivering yet another quarter of sustained growth, Bank Sohar’s net profit for the six months ended June 30, 2012 grew by 49.55 per cent to RO 10.361 million, compared to a net profit of RO 6.928 million for the corresponding period of 2011.

This financial performance has won the bank laurels as the fastest growing banking institution in Oman — underscoring Bank Sohar’s quest for a successful niche in an industry dominated by well-established players.

Bank Sohar has performed well in all key financial parameters. Net Interest Income jumped 19.51 per cent to RO 20.009 million during the first half of this year, from RO 16.742 million for the period ended June 30, 2011. Operating income rose by 22.69 per cent to RO 25.429 million, from 20.727 million during the first half of last year. In contrast, operating expenditure increased a modest 3.34 per cent to RO 12.025 million, from RO 11.636 million during the same period last year — a testament to the results of constant endeavours to improve operational efficiency at the bank.

Building on successive quarters of strong growth, Bank Sohar also registered healthy gains across all the core areas of its banking operations.

Gross loans totalled RO 1,125 million during the first six months of this year, which was up 8.04 per cent from the RO 1,041 million recorded as of December 31, 2011. Net loans and advances grew 7.98 per cent to RO 1,101 million, from RO 1,020 million during the preceding six months ended December 31, 2011. Customer deposits ballooned to RO 1,309 million from RO 1,171 million as of December 31, 2011, an increase of 11.78 per cent.

The bank’s market share of Private Sector Credit was at an enviable 8.34 per cent as of end June 2012, while the share of Private Sector Deposits climbed to an impressive 8.64 per cent.

“Bank Sohar’s financial performance for the first half of 2012 is in sync with its strategy for achieving sustainable and profitable growth. This highlights the bank’s graduation to the ranks of the nation’s top banks. That we were able to maintain an energetic pace of growth in a mere five years since inception is testimony to our robust business model, the callibre of our staff and management, and the strong appeal of our products and services,” said Dr Mohamed Abdulaziz Kalmoor, CEO, Bank Sohar.

In recognition of this relentless pursuit of excellence and passion for success, Bank Sohar was named the ‘Fastest Growing Bank in Oman’ at the recent Banker Middle East 2012 Awards ceremony held in Dubai. Closer home, the bank secured second rank in the large-cap segment of ‘Best Performing Companies’ at the Alam al Iktisad Wal Amaal (AIWA) Awards ceremony.

During the first half of this year, the bank had embarked on a number of initiatives with far-reaching and beneficial implications for the bank’s long-term growth and success. Notable is Bank Sohar’s continuing efforts to develop and roll out an innovative and home-grown Omani model of Islamic banking that promises to set the bank apart from other providers of Sharia-compliant financial services.

Bank Sohar has enlisted the specialist services of Dar al Sharia, a reputed legal and financial consultant to assist in the conception and implementation of an Islamic Window that will be uniquely Bank Sohar in substance and style. An Islamic Banking veteran has joined Bank Sohar to spearhead the launch of an Islamic Window, while a Sharia Board is being constituted as well.

Bank Sohar has also pursued a vigorous, diverse and effective Corporate Social Responsibility programme that continues to bequeath an array of benefits to various sections of the community. The bank has focused on those belonging to disadvantaged segments of society. In recent months, beneficiaries of Bank Sohar’s charitable gestures have included the Oman Association for the Disabled (Sohar Branch), The Association for the Welfare of the Handicapped (Sohar), and the Creative Centre for Rehabilitation.

Furthermore, as a steadfast patron of national causes and initiatives, Bank Sohar sponsored the just-concluded Salalah Tourism Festival, which has been a major attraction for tourists and local residents alike.

Omanobserver