Bank Nizwa eyes 5 pct of Oman banking mkt

DUBAI, Feb 26, (RTRS): Omani lender Bank Nizwa, the sultanate’s first full-fledged Islamic bank, plans a steady expansion of its retail network with a view to capturing a 5 percent share of the total banking market, according to its chief executive.

The country’s two new Islamic banks, Bank Nizwa and Al Izz Islamic Bank, obtained operating licences late last year. They face competition from conventional lenders which plan to launch Islamic windows themselves.

“We believe that probably the Islamic industry will be 15 to 20 percent of the total banking sector. Our share of that, being a full-fledged Islamic bank, well-capitalised, wellstaffed, I think it should be 30 to 50 percent,” Jamil Al Jaroudi, chief executive of Bank Nizwa, told Reuters.

“We could end up having 5 percent of the total market.”

Bank Nizwa launched operations in January with three branches, and plans to open an average of five every year, targeting a total of eight by the end of 2013, he said. “In five years that should give you a network of 20 to 25 branches.”

Oman’s commercial banking network had 461 branches registered at the beginning of 2012. Conventional lenders are now exploring whether to convert some existing branches into Islamic ones.

Under the country’s Islamic banking rules, released in December, conventional banks can only offer