First such programme in the country to be endorsed by Ministry of Social Development and Central Bank of Oman

Muscat. 8 May 2006: BankMuscat (SAOG) ('BankMuscat'), the nations largest bank, has launched a social awareness programme to promote sensible borrowing in the country. This is the first such programme in the country to be endorsed by the Ministry of Social Development and the Central Bank of Oman.

The launch event was organized under the patronage of HE Ahmed Rashid Mohammed Al Mamari, Undersecretary of the Ministry of Social Development and HE Hamoud Sangour Al Zadjali, Executive President, Central Bank of Oman, who kindly consented to grace the occasion. Several distinguished members of the Government, public pension funds and leading educational institutions were present on the occasion.

Speaking at the launch of the progamme, AbdulRazak Ali Issa, Chief Executive of BankMuscat said:

"To support the significant efforts made the Ministry of Social Development and the Central Bank of Oman to enhance the welfare of our people and promote the long-term growth of the national economy, the Bank has decided to launch a social awareness campaign addressing the dangers of excessive personal borrowing. This campaign is intended to recognize responsible consumer lending as a key value and crucial growth engine in our society."  

The Ministry of Social Development and the Central Bank of Oman have for quite some time now remarked on the growing consumerism within the country, that has resulted in the fuelling of excessive personal lending across the Sultanate. The Central Bank of Oman has also on more than on occasion asked key players within the domestic banking industry to exercise restraint and resort to self regulation when it comes to the liberal disbursement of loans. This programme is meant to further strengthen the efforts to bring about an awareness of dangers of excessive loan taking and promote 'sensible borrowing'.

"As the nation's largest bank, we believe it is our responsibility to society and the people whom we serve, to create awareness of the dangers that may arise out of indiscriminate loan taking. We are deeply grateful to the Ministry of Social Development and the Central Bank of Oman for their graciously agreeing to support our programme. This, we believe, will go a long way in helping people realize the extent and gravity of the problems that our society faces."

Hinging on the philosophy that one needs to 'borrow sensibly, to live happily', the programme will use a wide range of mass media tools to reach out to people across the length and breadth of the country and create greater awareness of the dangers of excessive borrowing.

The launch of the programme will also be supported by a series of internal-focused initiatives within the Bank to ensure that its customers are suitably sensitized to the benefits of 'ethical loan taking'.

-Ends-

About BankMuscat:
BankMuscat (SAOG) is the largest bank in the Sultanate of Oman with total assets in excess of RO 2 billion (USD 5.2 billion). With a dominant position in corporate banking, retail banking, treasury, investment banking, private banking and asset management in the country, BankMuscat enjoys a market share of 37.83 % in terms of total assets, 37.92 % in terms of total credit, 35.1% in terms of total customer deposits and 38.59 % of total savings deposits as at 31 December 2005.

The Bank achieved a net profit of RO 13.25 million during the first quarter of the year 2006 as against a net profit of RO 10.34 million reported in the first quarter of 2005, thus recording an impressive growth of 28%. The Bank achieved a net profit of RO 45.4 million for the FYE 31 December 2005, an increase of 33.1% over 2004. 

The year gone by was also extremely rewarding for the Bank in terms of awards and recognitions. Amongst the laurels won during the year are:

Gulf Excellence Forum - Gulf Excellence Award, Oman

Euromoney - Best Bank, Oman (for the 5th year)

Banker FT London - Best Bank, Oman (for the 5th year) / Deals of the Year Award - Omantel

Global Finance - Best Bank, Oman (for the 6h year)

Best Forex Bank and Provider, Oman;

Best Trade Finance Bank and Provider, Oman;

Best Consumer Internet Bank, Oman;

Llyods List Middle East - Trade Finance Award

Muscat Securities Market - Best Brokerage Firm (in terms of volume)

Oman Awards for Excellence - People Development Award

BusinessToday - Best Bank, Oman;

Best Financial Services Brand, Oman;

Best Place to Work, Oman

JP Morgan Chase - Straight Through Processing Award (for the 5thYear)

The Chief Executive of the Bank, Mr AbdulRazak Ali Issa, has just been declared the Middle East Banking & Finance CEO of the Year 2006.

For more information, please contact:
Sukanti Ghosh
Head - Corporate Communications
BankMuscat (SAOG)
Phone: +968 99261325
E: sukantig@bankmuscat.com

Or

Suha Al Raisi
Officer - Corporate Communications
BankMuscat (SAOG)
Phone: + 968 24768595
E: suhaa@bankmuscat.com
 

© Press Release 2006