Sohar International posts 29% decline in net profit
Sohar International Bank reported a 29.2 per cent year-onyear decline in its net profit for the first nine months of 2020. The bank's net profit for the nine months period ended September 30, 2020 decreased to RO17.75mn compared to RO25.06mn recorded in the same period of last year.
Sohar International's operating income dropped 5 per cent to RO70.31mn during January – September period of this year against RO74.02mn in the same period of 2019, according to the bank's disclosure submitted to the Muscat Securities Market (MSM). Its operating expenses decreased by 4.7 per cent at
RO32.1mn in the first nine months of 2020 against RO33.67mn in the same period of 2019.
The reduction of bank's net profit includes an increase in net impairment charges and other credit risk provisions for the period in response to the economic impact of the COVID-19 pandemic and lower oil prices, Sohar International said in its filing to the MSM.
The bank's loan book growth remain flat this year as net loans and advances marginally increased by 0.4 per cent to RO2.467bn as of September 30, 2020 compared to RO2.477bn a year ago.
'Total assets increased 10.3 per cent with net loans and advances growth flat as Sohar International exercised prudence in its growth strategy given the current economic conditions,' the bank said.
Sohar International recorded a sharp increase in customer deposits which reached to RO2.348bn as of September 30, 2020 from RO1.994bn a year ago. 'Customer deposits increased by 17.8 per cent reflecting Sohar International's strengthening funding and liquidity position,' the bank said