Ahlibank Profits Up 6pc To RO 12.50 Million

Demonstrating continued strong and prudent growth, Ahlibank posted a net profit of RO 12.50 million for the six months ended June 30, 2013, which represents a 6 per cent rise over earnings of RO 11.80 million reported as of June 30, 2012. These results are a direct consequence of Ahlibank’s business strategies and the adoption of a long-term view of business and its commitment to a sustainable business model in the interest of all its stakeholders, Ahlibank said in a press statement. The Bank continues to grow in a prudent way and has established robust risk management policies and procedures enabling it to remain focused on quality of its assets without affecting its ability to expand its business objectives, it added.

Highlighting Ahlibank’s key achievements and developments in the first half of 2013, Hamdan bin Ali al Hinai, Chairman of Ahlibank said, “Ahlibank has evolved year over year in a measured and controlled manner, based on investing in its human, technical and product capitals. This approach has yielded excellent dividends. The Bank’s business and financial model promotes to maintain and leverage established relationships; developing new ones with a sustainable revenue generation capacity and at the same time ensuring very high credit quality and service standards.” The Bank’s customer deposits have grown by 20 per cent in line with the strategy to build a stable low cost deposit base. Loan growth of over 17 per cent has been established with a prudent risk management approach and in a diversified manner. Total assets as of 30th June 2013 stood at 1,297 million showing an increase of 23 per cent as compared to the same period in the previous year.

Operating income has increased by 7 per cent to RO 24.3 million as compared to the same period last year, and operating expenses (excluding loan impairment net of recoveries) were controlled at RO 7.4 million resulting in a low cost to income ratio of 30.31 per cent (30th June 2012: 28.59 per cent). Commenting on the financial results, Abdul Aziz al Balushi, CEO Ahlibank, said “The Bank has performed outstandingly throughout first half of 2013 which has culminated in another excellent financial performance. Year over year we have witnessed growth in the key financial and business indicators, which has been an excellent result.”

“Our commitment to customer service is further supported through our expanded branch network, our specialised business units and our improved product offerings. This has positioned Ahlibank as one of the fastest growing banks in the region, with the size of the Bank doubling in the last two years, as measured by customer deposits, loans and total assets,” the CEO further added.

Ahlibank also launched its new website in the second quarter of 2013, featuring easy information access, secure online banking and an overall better customer experience. The site www.Ahlibank.om showcases the Banks customer centric approach by providing its customers a user friendly interface which delivers an insight into the Bank’s different products and innovative banking solutions.

In the beginning of this year, Ahlibank launched its Al Hilal Islamic Banking services through a dedicated network of 5 branches simultaneously on January 29, 2013 and recently opened its sixth branch in Salalah on June 30, 2013. Al Hilal Islamic Banking Services has taken the lead in launching a suite of banking products which combine traditional values with modernity. Al Hilal Islamic Banking Services has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry.

The Bank strategy is to attract customers through transparent Shari’a based products and services. The operations are managed by an experienced team, segregated from the conventional banking activities.

In addition to the Bank’s product and capital initiatives, Ahlibank is also making steady progress in the construction of the new iconic Head Office building. The new premises have been designed to reflect Ahlibank’s modern, dynamic and progressive style, rooted in the Sultanate’s rich culture and tradition. The move to the new head office building is expected by the end of 2013.

Looking ahead towards 2013, Al Balushi stated,” The Omani banking industry is growing and in the face of the new developments, we are steadfast in our commitment to building a bank that provides services to our customers by uniquely responding to their banking needs. The on-going support of our shareholders and clients is a key factor in our success.”

Oman Daily Observer