Bank Sohar experienced 30.85% net profit growth in first quarter 2014
Bank Sohar announced its financial results for the first quarter ended March 31, 2014. The bank’s net profit catapulted by 30.85% to RO 7.96 mn in Q1 2014 compared to 6.08 mnin Q1 2013. The operating profit increased by 24.5% to RO 17.1 mn in Q1 2014 compared to RO 13.7 mn in Q1 2013. The Bank’s total assets grew from RO 1,789.62mn in 2013 to RO 2,023.80mn, a growth of 13.09%. Net Loans and advances grew by 16.86% to RO1, 305.15mn in comparison to RO1,116.87mn in 2013.The Bank’s deposits which stood at RO 1,409.99mn by the end of March’14 witnessed a growth of 7.59% over last year. The total shareholder equity increased to RO174.67mn an increase of 16.39% over the previous year.
Commenting on the results, Dr. Mohamed Abdulaziz Kalmoor, CEO of Bank Sohar said, “Bank Sohar’s first quarter results truly reflect the strength of our operating model, our continued progress and growth within the Banking sector in the country. In just the first three months of 2014, we have experienced an improvement in several revenue categories, including net interest income and fee income from our retail, Corporate and Investment businesses. Thanks to our solid foundation and the strong first quarter, we are well positioned for the remainder of 2014.
Operating expenses went up by 13.71% to RO 7.34mn, in comparison to RO 6.46mn in the same period last year. Despite the increase in expenses, the Cost to Income Ratio has reduced from 47.03% in 2013 to 42.94% this year.
“I am pleased to report the continued success of the Bank, stemming from the wise guidance of our Board of Directors and the professionalism and efficiency of our management team and staff. We are firmly committed towards operational excellence ensuring that Bank Soharmeets and exceeds standards in all its operating segments and with a strategy that will ensure our customers receive industry leading services whilst providing shareholders with a superior return on their investment over the long run”,added Dr. Mohamed Abdulaziz Kalmoor.
In addition to its strong financial results in the first quarter, Bank Sohar and the CEO were also recently named ‘Best Financial Brand Oman 2014’ and ‘Best Banking CEO Oman 2014’ respectively by renowned UK based Global Brands Magazine. These awards, and the others achieved by the Bank in the recent past are a testament to the solid foundation that the Bank has been built upon and a reflection of the leadership style as well as its strong position as both, a financial institution and brand within the financial sector in the Sultanate.