Ahli Bank announces 31% increase in Q3 profit

This was the record highest quarterly profit for Ahli Bank since it was converted into a full fledged commercial bank.

Commenting on the financial results, Mr. Hamdan Ali Nasser Al Hinai, First Deputy Chairman said:

"Our third quarter results show a healthy continued and structured growth. These figures are a reflection of the Bank's strong financial position and steady strategy, allowing us to cope effectively with the difficult market condition witnessed since last year."

For the 9 months ending September 2009, Ahli Bank's Net Operating income grew by 23% to OMR 12.94 as compared to OMR10.55m for the same period in year 2008, despite the growth in Operating Expenses, which have increased by 21% to OMR5.85m because of the continued investment in human resources, IT development, and branch/ATM network expansion. Ahli Bank witnessed a rise of 18% in net profit which amounted to OMR6.06m, at the end of the third quarter, compared to the same period in 2008.

Customer Deposits grew by 26% from OMR288m in September 2008 to OMR364m in September 2009, underlining the Bank's strategy of building a stable deposit base. As of September 30, 2009 the total assets increased to OMR486m representing a growth of 13% from September 2008. The loans and advances registered a growth of 17% from OMR348m in September 2008 to OMR406m in September 2009. The Bank maintained its high quality of loan book and investment book through prudent risk management practices.

Highlighting Ahli Bank's key achievements and developments in the third quarter of 2009, Mr. Abdul Aziz Al Balushi, CEO of Ahli Bank, said: "We are extremely pleased to report such positive growth, which is the result of prudent risk management and the effective execution of Ahli Bank strategic plans. During this period, the Bank has launched series of service enhancement to suit customers' needs. This includes the extension of its branch network, the launch of new ATM chip-debit card, extending the successful Summer Cash Back Campaign to the end of Ramadan, MyHassad Ramadan Give Back Charity Donation drive and the much awaited MyHassad Salary for life draw of RO 250,000. Ahli Bank is soon launching its new exclusive offering 'MyGlobal', through which the bank offers its customers a full range of products and services in Oman, Egypt, Bahrain Qatar, Kuwait and UK. With 'MyGlobal' Ahli Bank customers can simultaneously initiate a relationship with its strategic partners across the Region and avail the privileges of banking in Oman and across the network. During the quarter, the Bank has opened its dedicated Staff Training Center in Al Khuwair and is planning to add two more branches to its current network of 11 branches and a premium/private banking lounge in the current quarter."

The retail banking division of Ahli Bank is focusing on expansion and diversification of distribution channels. This includes new branches and expansion of the ATM network across Oman. The Banking products and services are being continuously redeveloped and repackaged on an ongoing basis to suit customer's needs. In the third quarter, apart from 5 new off site ATM machines, Ahli Bank also launched Oman's first ATM chip debit card to provide its customers a higher degree of security. Equipped with the Smart Card Technology also known as Chip and PIN, the new debit card offers customers a much higher level of security against fraud as well as quicker transaction times.

"Ahli Bank is confident that the banking industry will respond positively to recent Government support. We appreciate the wise guidance and policy enacted by the Central Bank of Oman, which was set forth to protect Omani banks and was proven sound during the global crisis. We are also very grateful to our shareholders and customers, as they form an internal part of Ahli Bank's success" Mr. Al Balushi further added.

Ahli Bank has been confident in maintaining a steady and solid growth in its operation and financial performance. Going forward, the Bank remains on course to meet its planned objective by broadening its customer base.