Held in collaboration with the Muscat Securities Market (MSM), Dr. Jamil El Jaroudi, CEO of Bank Nizwa, presented an overview of the Bank’s performance as of end of Q3 2015 and provided a market performance update of the Islamic Finance industry.
Speaking in front of government policy makers, brokers and financial services’ representatives, Dr. El Jaroudi highlighted how Bank Nizwa’s total revenue has increased by 23% by end of Q3 2015, as a result of growth in financing.
He said that the Bank’s Islamic financing and deposits have also grown by 78% and 81% respectively, as of end of September 2015 compared to December 2014. He added that the Bank is expected to reach the breakeven point by end of December 2015 and to start making profit on 2016.
During the session, Bank Nizwa’s CEO stressed the importance of reflecting on the Sultanate’s successful Islamic banking journey to date and identifying measures to further enhance its growth. He also said that banks should focus on continuing to deliver exceptional customer experience to increase market share and strengthen customer loyalty. He concluded that Bank Nizwa’s Islamic financing and deposits’ market share have increased to 17% and 13% respectively as of the 30th of September 2015.
The latest market performance update from Dr. El Jaroudi highlighted that Islamic financing and deposits have grown by 43% and 90% during 2015, aggregate financing with conventional banks registered an increase of OMR 1,271 million, with Islamic banking capturing 34% of this share.
Furthermore, aggregate deposits within the banking sector saw an increase of OMR 862 million, while Islamic banking stood at 71% of this increase. He also said that the expanding geographical reach of Islamic Finance across the Sultanate coupled with increased awareness of the banking solutions available, is expected to result in Islamic Finance assets reaching 10% of the total banking assets by 2018 in comparison to the current 4.5%, by end of 2014.