Loans and Advance increase by 30%
Customers' Deposits jumped by 26%
Total Assets increases by 30 %
Capital Adequacy at 18.96%
Cost to Income Ratio reduces from 36% to 31%
ahlibank announced its financial results for the first quarter ended 31 March 2011. In ongoing challenging market conditions, ahlibank recorded a net profit of RO 4.03 m for the first quarter ended 31 March 2011. Total operating income grew by 34% to RO 7.60m compared with RO 15.66m during the same period last year.
These outstanding financial results prove once again ahlibank's strong capabilities and its leading position, along with the ability to record a strong and balanced growth across all its activities.
Mr. Abdul Aziz Al Balushi, ahlibank's Chief Executive Officer, said: "These excellent results reaffirm ahlibank's ability to deliver consistent growth in all activities and across all locations in which it operates. It is also a reflection of the successful implementation of strategic goals with effective risk management. At the same time, these results are a reflection of our continuous focus on maintaining and enhancing service quality and providing customers with distinctive and innovative products that cater to their growing needs and expectations."
Cost to Income Ratio decreased to 31% from 36% in March 2010. The Bank's total assets as at the end of March 2011 reached Rial 800 Million representing a growth of 29% from March 2010. Loans and advances grew by 30% from Rial 505 Million in March 2010 to Rial 655 Million in March 2011. In-line with the Bank's strategy to build a stable low cost deposit base, Customer deposits have grown by 26% from Rial 487 Million in March 2010 to Rial 615 Million in March 2011, and this also reflects the depositors' confidence in the bank. Capital Adequacy of the Bank remained strong at 18.96% against the central Bank's mandatory ratio of 12%.
The loan book continues to be of high quality as a result of the prudent risk management approach adopted by the Bank, which is shown in the NPL/Gross Loan Ratio of 0.58%.
Commenting on the bank's performance, Mr. Hamdan Ali Nasser Al Hinai, Chairman of ahlibank said," The banks growth year over year reflect our persistent efforts to create value for all our stakeholders. The Bank generates healthy core earnings and displays consistent improvement in the efficiency indicators.
This has been possible due to the support and encouragement of the Central Bank of Oman and the continued investment and other measures adopted by the government to create an environment conducive to the growth of business."
From the First quarter of 2008 to the First quarter of 2011 performance
On January 5th ahlibank completed three successful years in the Sultanate, providing its customers with friendly banking solutions and innovative products to make banking a comfortable and enjoyable experience for them. ahlibank has also been at the forefront for several social causes and have made a mark in the banking sector of Oman owing to their continued commitment towards the country
ahlibank delivered a strong financial performance quarter on quarter, as the Bank pursued controlled growth of its balance sheet focusing on liquidity & cost control whilst maintaining its asset quality. Total assets increased to 800 million from321 million as compared to the first quarter of 2008. Net profit per quarter increased from RO 1.61m to RO 4.03 million in the first quarter of 2011 as compared to first quarter of 2008.
Commenting on the overall performance of the business in three years, the CEO said, "The sustainable growth in our core businesses year after year has enabled the Bank to deliver a healthy set of results despite the difficult global environment. We remain focused on building all of our core businesses within the domestic market for the long term whilst continuing to consolidate and extract synergies from our regional presence. Our outlook going forward remains cautiously optimistic given the performance of our businesses and feedback from our customers."
During the first quarter of 2011, ahlibank was awarded the Corporate Governance Excellence Award 2010 sponsored by the Capital Market Authority. The award is among the most respected awards and takes into account the company's adherence to code of corporate governance and best practices all of which adds to enhancing shareholder value.
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© Press Release 2011
