Bank Nizwa marks annual general meeting with first profit milestone

MUSCAT: Reflecting Islamic finance’s continued surge in popularity in Oman, Bank Nizwa recorded its first net profit since inception in 2013. Witnessing unparalleled growth over the last four years, the bank has led the sector from the start, establishing a foundation for its continued traction among entrepreneurs, investors and the public from every segment in the Sultanate. Its success, underpinned by consistent innovation, has cemented its role as the undisputed leader of Islamic finance in Oman.

During their recent Annual General Meeting, Sayyid Amjad bin Mohammed al Busaidi, Chairman of the Bank Nizwa, presented the bank’s financial performance for the year ended on December 2016. Additionally, shareholders approved the director’s report, the corporate governance report, the auditors’ report and all financial statements.

Sayyid Amjad commented during the meeting, “Bank Nizwa’s financial performance this year demonstrated solid growth throughout its operation, reinforcing its leadership position within the sector. Not only were we able to maintain our status as Oman’s fastest-growing Islamic financial institution, we also managed to grow the sector and secure major financial achievements.

First and foremost, our assets grew by 49 per cent to reach RO 516 million whereas customer deposits increased by 86 per cent to reach RO 351 million, showing significant growth in the face of difficult economic circumstances. While our operating income for the year rose by 46 per cent, our operating expenses declined by 3 per cent, reflecting the success of our strategic cost management.

As a result, cost to income ratio declined below 91 per cent, allowing us to achieve our first record net profit.”

Despite growth in operations, the bank’s operating expenses were managed in line with income growth, thereby improving the headroom between cost and income growth. Its operating performance was underpinned by the strategic diversification of products and services. This allowed the Retail and Wholesale banking units to continue their strong performance throughout the year, boosting operating revenue to RO 17.3 million, an increase of 46 per cent on the previous year.

Sayyid Amjad added, “The bank’s customer financing portfolio, deposits, assets and operating income all reported substantial growth and as a result, we achieved a historic first net profit since our founding in 2013. During the year the bank identified key opportunities, critical areas of improvement and subsequent tactical plans that helped retain its position as the largest full-fledged Islamic Bank in the Country.”