BankDhofar witnessed tremendous growth in all key areas in 2014
Financial results announced at the Bank's BoD meeting
OMR 40.45 million net profit, showing annual increase of 14.23%
The Islamic Banking Window "Maisarah" achieved outstanding financial results as the total assets increased to OMR191.79 million and achieves breakeven
OMR 115.5 million capital raise recommended as part of the bank's capital augmentation plan, subject to Regulatory Approvals
10% cash dividend and 10% bonus share recommended at the BoD meeting, subject to Shareholders and Regulatory Approvals
Muscat, 28 January 2015
Revealing yet another year of continuous success and tremendous growth, BankDhofar recently announced its financial statements and the auditors' report for the financial year ended 31st December 2014. The announcement was made during the Bank's Board of Directors' meeting on January 27, 2015. (Subject to CBO approval and shareholders' approval in the upcoming annual general meeting)
BankDhofar continued to grow in all key areas in the year 2014 and crossed OMR3 billion in Total assets and 2 billion in Net Loans, Advances & Financing to customers, the net Loans, Advances and Financing to customers reached OMR2.25 billion at December 2014, showing a growth of 18.42% from OMR1.90 billion at the end of December 2013. The customer deposits mobilized by the bank achieved a growth of 22.17% from OMR2.03 billion at the end of 2013 to reach OMR2.48 billion at the end of 2014.
The key profitability indicators have also recorded positive growths, as net interest and financing income recording a strong growth of 15.46% reaching OMR76.79 million for the year 2014 compared to OMR66.51 million in 2013. Non-interest and non-financing income such as fees and commission, foreign exchange profit, investment and other income have reached OMR22.06 million in 2014 as compared to OMR23.04 million achieved in the previous year.
The Cost to Income ratio during the year 2014 improved to 46.70% as compared to 50.60% in 2013. The provisions for loan impairment, net of recovery (excluding legal case recovery), during the year 2014 are OMR6.93 million, as against the OMR4.23 million during the previous year 2013 in line with loan growth.
The net profit for the year 2014 achieved by BankDhofar is OMR40.45 million as against OMR35.41 million, showing an increase of 14.23% year on year, excluding the effect of Legal case write back of OMR26.1 million (before taxes), in 2013. Net profit for 2013 including one-off Legal case recovery isOMR58.51 million.
Maisarah- Islamic Banking Services
Maisarah achieved outstanding results during 2014 in its 2nd year of operations after launch in March 2013. The Islamic Banking Window financial performance reflected strong growth as the total assets increased to OMR191.79 million at December 2014 from OMR50.02 million at the end of 2013, a growth of 3.83 times. The gross financing has grown remarkably by 4.71 times from OMR28.27 million at the end 2013 to reach OMR133.03 million at December 2014. Customer deposits raised by the Maisarah has recorded an impressive growth and increased from OMR3.68 million at the end of 2013 to OMR97.01 million at the end of 2014. The key profitability metrics showed good growth, with net financing income increased toOMR3.72 million in 2014 compared to OMR0.26 million in 2013, recording 14.31 times growth.
Non-financing income such as fees and commissions, foreign exchange profit, investment income and other income reached OMR0.58 million during 2014 compared to OMR0.09 million in 2013.
Maisarah Islamic Banking Services became profitable in its first full year of operations in 2014, with achieving Net Profits before taxes ofOMR0.23 million for 2014 compared to net loss before taxes ofOMR2.20 million in 2013, which is nine-months operations being the year of launch and includes pre-operating expenses ofOMR0.49 million.
Strategic Initiatives
In September 2014, BankDhofar raised Capital in the form of Tier 2 Sub-ordinated Loan of USD 75 million (OMR28.88 million). In continuation of capital augmentation plan, the Board of Directors in its meeting in December 2014 recommended to raise capital ofOMR115.5 million (USD 300 million) in the form of Tier 1 (including Additional Tier 1 capital) in 2015, subject to Regulatory Approval. Extra-ordinary General Meeting of the Shareholders would be called seeking necessary approvals.
To fund the growth of Bank's Islamic Window, the paid up capital of "Maisarah" Islamic Banking Services has been increased from OMR12.5 million to OMR25 million from the core capital of the Bank.
Proposed Dividends
BankDhofar Board of Directors recommends cash dividend of 10% amounting to OMR13.43 million and a Bonus share issue of 10%, aggregating to 134.32 million shares of OMR0.100 each, of the Share capital of the Bank, subject to Regulatory Approvals.
Corporate Social Responsibility (CSR) Initiatives
Community and social awareness campaigns as well as a strong focus on engaging staff are being promoted through various channels and campaigns. External partnerships with the likes of the Environment Society of Oman, Al Noor Association for the Blind, the Oman Charitable Organisation and many others help BankDhofar interact with the community at large on a regular basis, and assess what programs to support. The list this year includes: partnership with Tawasul supporting their Annual Civil Society's Leaders Dialogue focus on what's next in CSR, partnership with the Oman Association for the Disabled to provide specialized wheelchairs and medical beds for cerebral palsy patients, partnership with Dar Al Ata'a to provide for families in remote areas during the Holy month of Ramadhan, partnership with the newly formed Omani Bahja Orphan Society in Salalah to care for children, BankDhofar blood donation drive, internal research on attitudes and perceptions of CSR & Sustainability, partnership with Al Noor Association for the Blind in Muscat to help support their plan for 2014 in providing white canes and equipment, partnership with local school authorities to support Qura'an Memorisation competition
BankDhofar has invested in improving its own CSR in order to be a leader in the market, and offer all its stakeholders value added services with a focus not only being the best bank, but also a responsible financial institution. These efforts were recognized last year by the Capital Market Authority's Centre of Corporate Governance as the leading Bank for 2013 and were given an award, in addition to recognition this year by Global Financial Market Review Award for 'Best Islamic Community Support' for Maisarah, BankDhofar's Islamic Banking Window.
Awards and Accolades in 2014
The combination of the thorough vision of BankDhofar's executive management, the comprehensive operational strategy that revolves around top-notch banking practices and best customer experience, as well as commitment to community development and contribution to the growth of the national economy, placed BankDhofar on the top list of best banks in the region. The Bank was awarded a number of local and international awards during 2014, including: 'Best Managed Advisory Service' and 'Best Mobile Banking App' by Banker Middle East Awards 2014, 'Best Islamic Community Support Bank 2014' and 'Best Evolved Brand Award, 2014' by Global Financial Market Review, 'Best Bank in the Sultanate 2014' by CPI Financial, 'Best Retail Bank in Oman' by Global Banking & Finance Review 2014, '2nd Prize Best Banks in Oman 2014' by Business Today, 'The Sultan Qaboos Award for Excellence in e-Government 2014' for 'Best Mobile Service 2014', 'The Customer Delight Award 2014' MENA, Oman, by The British Institute of Sales & Marketing Management.
Aspiring to be the best bank in the Sultanate and the wider Gulf area, BankDhofar is committed to provide its customers with the best banking experience. Today BankDhofar is one of the fastest growing banks in the Sultanate, with a strong presence in Corporate Banking, Consumer Banking, Treasury and Project Finance. The Bank has an extensive network of 65 branches across the Sultanate, in addition to 145 ATM and 52 CDM facilities located in all parts of Oman.
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© Press Release 2015
