StanChart Oman may close retail banking operations

11/7/2015 12:49:48 PM

(MENAFN- Muscat Daily) Muscat-

All Standard Chartered Bank credit cards in Oman will be cancelled shortly with the bank having started to inform its customers.

E-mails SMSes and letters are being sent out in a phased manner to inform all Omani and non-Omani customers about the decision by the bank to close down its credit card operations.

While the wording of the SMS seems to suggest individual cards are being cancelled in reality all cards are being cancelled.

Standard Chartered's Oman call centre operatives confirmed this on Thursday saying that from the time of receiving the letter customers will have a total of 150 days to settle their accounts.

The SMS being sent reads as follows: 'Dear Valued Client Standard Chartered Bank has sent you a letter regarding the cancellation of your credit card. If you have not received it please contact our 24-hour phone banking on +968 24773535 for details or visit any of our branches.'

A Bloomberg report in April quoted three sources as saying that Standard Chartered Plc is seeking to sell its retail banking business in Oman. The bank has shelved a plan to close its Islamic retail business in Bahrain the report added.

The British bank will retain its corporate and institutional clients in Oman the people had said asking not to be identified because the information wasn't public.

The sale in Oman where it has three branches and employs about 100 people may be offered to local banks according to one of the people.

In May another Bloomberg report had said Standard Chartered is also closing its small and medium enterprise loans business in Bahrain over the next two years again according to sources. It's also scaling back at its Qatar retail business to focus on wealthy clients.

'As part of the bank's refreshed strategy we continue to review our businesses across our various markets' Standard Chartered's Dubai-based spokesman Ramy Lawand had said then in an e-mailed response to Bloomberg.

London-based Standard Chartered is scaling back after two years of falling profit amid slower economic growth in Asia. The Middle East North Africa and Pakistan accounted for about ten per cent of Standard Chartered's revenue in 2014. Operating profit fell ten per cent to US$769mn as overall lending dropped three per cent to US$22.8bn. Lower income in the region was mainly because of high levels of liquidity the absence of market volatility and increased competition from regional banks Standard Chartered said in its annual report as reported by Bloomberg.

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