(MENAFN- Muscat Daily) National Bank of Oman's net profit for the nine months ended September 30 2014 was OMR37.1 million up from OMR31.2 million when compared to the corresponding period in 2013 an increase of 19 per cent.
This growth primarily comes as a result of stronger performance at an operating level as well as reduced charges for loan impairments. Net-interest income from conventional banking and revenues from Islamic financing activities increased to OMR59.9 million for the nine month period up 8.1% on the equivalent figure in 2013. Total non-interest income increased by 8.6% to OMR24 million as a result of the Bank's efforts to diversify earnings. In October 2014 the Bank successfully concluded a USD$500 million Reg S bond issuance under its Euro Medium Term Notes (EMTN) programme.
These funds raised will be used to repay National Bank of Oman's existing dollar liabilities and also support the growth of its USD loan portfolio. Ahmed Al Musalmi Chief Executive Officer of National Bank of Oman said: 'We have continued to deliver strong performance in the third quarter of this year demonstrating strong positive growth trends across every division of the business. This has been achieved while ensuring that putting our loyal customers first remains the core focus of the business. We see a strong pipeline of opportunities ahead and while the economic climate remains fertile we will look to capitalise on this where possible. National Bank of Oman remains very well positioned for future expansion and the successful conclusion of the USD$500 million Reg S bond issuance completed in October will significantly enhance our capabilities over the next 12 months.'
'We would like to acknowledge and thank our valued customers and shareholders for their continued support of the Bank. We express our appreciation to our regulators the Central Bank of Oman the Central Bank of UAE and the Capital Market Authority for their continued guidance and support of our endeavours. We thank the Bank's management and staff for their dedication and commitment. Above all we pay tribute to His Majesty Sultan Qaboos Bin Said for his inspiring leadership and vision and under whose wise guidance Oman steadfastly continues on its path towards successful development.'
During the nine month period deposits at National Bank of Oman grew by over OMR542million while loans increased by OMR192 million resulting in surplus liquid assets. In coming months the Bank will look to deploy the surplus liquidity in remunerative assets to further enhance its revenues.
Al Musalmi added: 'We continue to focus on developing new products and innovative services in line with the Bank's strategy of development. National Bank of Oman will endeavour to remain at the forefront of advancements to ensure we provide services that both anticipate and meet our customers ever evolving requirements and to maintain our position as a leader in Oman's banking sector and to be the bank of choice.'
Operating expenses increased by 9.6% to OMR 39 million during the nine month period largely as a result of National Bank of Oman expanding the size and scale of its businesses such as new developments in the UAE and the enlargement of Muzn National Bank of Oman's Islamic division where it has boosted human resources and increased key infrastructure to support the Bank's sustainable growth in the future.
The Bank continues to witness robust growth in Muzn with the Islamic banking window's assets growing by 426% to OMR56 million this year resulting in a total income of OMR1 million for the nine months ended 30 September 2014. This represents a revenue growth of 773% compared to the same period last year.
Earlier in the year the Bank opened a new branch in Al Rustaq with a dedicated Sadara Centre to serve customers in that region as well as five new Muzn Islamic Banking branches in Mabellah Sur Sohar Salalah and Nizwa. As part of its commitment to the community National Bank of Oman has invested in various corporate social responsibility initiatives including a workshop for Omani designers to help them run their SMEs the distribution of food hampers to underprivileged families in various Governorates across the Sultanate and the National Bank of Oman Golf Classic 2014.
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