Oman Arab Bank's 2015 net profit rises marginally to RO29mn

Date

3/10/2016 7:06:56 AM

(MENAFN- Muscat Daily) Muscat-

Oman Arab Bank (OAB) has announced its audited financial results for the year ended December 31 2015.

The bank posted a net profit of RO29.01mn for the year 2015 compared to RO28.40mn reported in 2014.

The bank registered strong income and balance sheet growth in 2015 while strategic investments were made to upgrade the bank's infrastructure and build sustainable business momentum.

Net interest income rose by 12 per cent for the year ended 2015 to reach RO49.13mn while non-interest income stood at RO30.62mn a nine per cent rise compared to the previous year.

The increase in top line income was largely due to a robust growth in balance sheet during the year. OAB's net loans and advances increased by 21 per cent to reach RO1.52bn while customer deposits also rose by nine per cent to reach RO1.60bn as of December 31 2015.

Operating expenses for the year ended December 31 were higher at RO43.523mn compared to RO37.416mn for the same period in 2014.

The capital adequacy ratio of the bank is 14.28 per cent as of December 31 which is well above the regulatory requirement of 12.625 per cent.

Amin al Husseini

The bank's Shari'a compliant window Al Yusr also showed positive growth with the bank's Islamic financing receivables more than doubling to RO49.9mn as of December 31 2015 compared to RO20.83mn on December 31 2014.

Customer deposits in the Islamic banking segment also increased significantly to RO49.39mn as of December 31 2015 compared to RO12.49mn in the same period of the previous year. Al Yusr has expanded to a nationwide footprint of seven branches located at Muscat Buraimi Sohar Ibra Nizwa and Salalah.

'Our 2015 financial performance demonstrates Oman Arab Bank's underlying ability to continue growth while managing risks in challenging conditions within the region' said Amin al Husseini CEO Oman Arab Bank.

'In 2015 we have commenced a transformational journey to enhance customer experience through our delivery channels including brick and mortar branches. We are investing in our franchise to build on our already strong heritage of trust'.

He added 'Oman Arab Bank has consistently delivered business growth over three decades which has advanced us into a reliable trusted and accomplished institution that adds value to customers employees shareholders and the wider community.'

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