Sohar International Reports 14% Net Profit Growth for Q1 2019
With its new vision to become a world-class Omani service company that helps customers and people to prosper and grow, Sohar International has posted a strong growth of 14% in net profit for the three month period ended March 31, 2019, achieving a net profit of OMR 10.15 million as compared to a net profit of OMR 8.90 million during the same period in 2018.
The Bank's total operating income increased by 16.7% from OMR 21.81 million in the first three months of 2018 to OMR 25.45 million for the same period in 2019. Operating profit increased by 11.2% from OMR 12.40 million in the first three months of 2018 to OMR 13.79 million in 2019.
Commenting on the Q1 results, Mr Mohammed Mahfoudh Al Ardhi, Chairman of Sohar International, said, “Having embarked on a new journey with a fresh vision and a new strategy, Sohar international has yet again managed to exceed expectations. Our new five-year strategy is already transforming the organisation as we redefine banking, enabling us to grow whilst delivering a robust and pivotal contribution to the national economy. I am confident that with our capable executive management and dedicated members of Sohar International family, we will continue to push boundaries and deliver beyond expectations.”
Sohar International continues to win credibility and trust from its customers, with gross loans and advances increasing by 9.37% from OMR 2.220 billion as at 31 March 2018 to OMR 2.428 billion as at 31 March 2019. Net loans and advances grew by 7.52% to OMR 2.337 billion as at 31 March 2019 from OMR 2.173 billion as at 31 March 2018. Customer deposits further increased by 9.80% to OMR 1.818 billion as at 31 March 2019 compared to OMR 1.656 billion as at 31 March 2018
Mr Ahmed Al Musalmi, Chief Executive Officer of Sohar International, commented, “The first quarter of 2019 was special as it witnessed the transformation of our organization into a more dynamic service company, allowing us to achieve such exceptional financial results that are among the highest in the local banking sector. This is very important to us as it reflects the high level of confidence reposed in us by our customers in such a transformational stage. Fuelled by a remarkable start in the year, while embracing the Sharp, Human and Unstoppable brand personality, we are optimally positioned to deliver on our purpose of helping customers win and achieve their goals, promising them unrivalled responsive banking services to their ever changing world."
Highlighting the customer centric approach and the positivity towards the future, Al Musalmi added, "Throughout the current year and beyond, we will continue innovating and offering customers More Velocity, More Value and More Vision in everything that we do. I would like to thank our customers, shareholders, regulators, board of directors and every member of our Sohar International family for supporting and being part of this winning chapter".
The bank's market share of private sector credit increased to 10.71% as at 28 Feb 2019 compared to 10.18% as at 31 March 2018, whilst its share of private sector deposits increased to 8.34% as at 28 Feb 2019 compared to 8.26% as at 31 March 2018. Total assets also grew by 5.59% from OMR 2.924 billion as at 31 March 2018 to OMR 3.088 billion as at 31 March 2019.
The bank continued to deliver outstanding results across all fronts, continuing to place customers at the heart of all activities. Working in collaboration with key public entities, Sohar International has continued contributing to Oman’s socioeconomic development by supporting initiatives focused on youth and talent development along with knowledge sharing platforms.
At Sohar International, we believe that our customers deserve nothing less than excellence. That is why we constantly strive to maintain and further enhance our position as one of Oman’s leading banks. We reiterate our commitment to create the finest banking solutions, services and products that will make us unique, distinct and different – like the proud heritage of Oman. As Oman’s economy experiences sustained growth and the non-petroleum sector emerges as an important economic force, we present ourselves as a 'one-stop financial super-mall' catering to the diverse needs of our individual and corporate customers.