Bank Sohar net profit soars by 35.13% in Q2 2014

24/07/2014 12:43 AST

Bank Sohar announced its financial results for the second quarter ended June 30, 2014. The bank’s net profit soared by 35.13% to OR16.153m in Q2 2014 compared to 11.954m in Q2 2013.

The Net Interest Income witnessed an improvement of 13.1%, increasing from OR21.035m for the period ended 30th June 2013 to OR23.790m for the period ended 30th June 2014. The operating income increased by 26.88% to OR35.267m in Q2 2014 compared to OR27.796m in Q2 2013.

Operating expenses went up by 13.82% to OR14.982m, in comparison to OR13.163m in the same period last year. Despite the increase in expenses, the Cost to Income Ratio has reduced from 47.35% in 2013 to 42.48% this year. The Bank’s total assets grew from OR1.745bn in 2013 to OR1.900bn in the same period this year, a growth of 8.89%. Gross loans have increased by 16.18% from OR1.205bn on 30th June 2013 to OR1.400bn as at 30th June 2014. Net Loans and advances grew by 16.47% to OR1.372bn in comparison to OR1.178bn in 2013. The Bank’s deposits which stood at OR1.351bn by the end of June 2014 witnessing a growth of 8.17% over last year. The bank’s market share of Private Sector Credit was 9.25%, while the Private Sector Deposit share was 6.94% as at end of May 2014. The total shareholder equity increased to OR181.85m, an increase of 17.59% over the previous year.

Commenting on the results, Dr. Mohamed Abdulaziz Kalmoor, CEO of Bank Sohar, said, “Bank Sohar’s second quarter results show key gains in several revenue categories, reiterating Bank Sohar’s position as one of the most profitable banks in the Sultanate. Such positive results truly reflect the strength of our operating model and our commitment towards business excellence. With such a strong financial standing at the mid-way mark of the financial year, 2014 is looking to be yet another year of success for Bank Sohar.”

Reiterating Bank Sohar’s strength within Oman’s banking sector, Fitch Ratings, a global leader in credit ratings and research, recently reaffirmed Bank Sohar’s long-term rating at BBB+ with a stable outlook. In their report, Fitch pointed out Bank Sohar’s relatively conservative risk appetite which translated into sound asset quality and also stated that Bank Sohar has been consistently achieving one of the strongest Non-Performing Loan (NPL) ratios in the banking industry within the Sultanate.

“Over the years the Bank has grown from strength-to-strength, growing exponentially in every facet of its business and consistently exceeding standards in all its operating segments, however maintaining its quality of loans. Firmly committed towards operational excellence, Bank Sohar ensures our customers receive industry leading services whilst providing shareholders with a superior return on their investment over the long run. Such continued success no doubt stems from the wise guidance of our Board of Directors and the professionalism and efficiency of our management team and staff,” added Dr. Mohamed Abdulaziz Kalmoor.

As a testament to its success, Bank Sohar has won a slew of awards locally, regionally, and internationally in just the first six months of 2014. Among its accolades, the Bank and Dr. Kalmoor were received the ‘Best Financial Brand Oman 2014’ and ‘Best Banking CEO Oman 2014’ award respectively by renowned UK based Global Brands Magazine and also received ‘The Diamond Eye Award for Quality, Commitment & Excellence’ from the French based Otherways Management & Consulting Association.

Bank Sohar was also presented with the ‘Strategic Award’ for their corporate website (www.banksohar.net) from the Lebanon based Pan Arab Excellence Awards Academy as well as Oman Web Awards. Bank Sohar was also named the ‘Fastest Growing Bank in Oman 2014’ while Dr. Kalmoor received the ‘Outstanding Contribution to Banking Industry Oman 2014’ Award by UK based International Finance Magazine (IFM).

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