Alizz islamic bank achieved its strategic targets in terms of growth, cost and profitability, in 2015. Gross financing receivables grew 185 per cent during the year, reaching RO201.9mn while customer deposits increased exponentially to RO161.4mn from RO15.3mn at the end of 2014. This exceptional growth has resulted in a 210 per cent increase in net operating income to reach RO5.99mn for the year 2015, improving considerably from RO1.93mn for the year 2014.
Enhancing network
The bank continued to expand its distribution network by opening two more branches in Muscat (Wattayah) and in Dhofar (Salalah) enhancing the network to six branches, in addition to a kiosk in Muscat Grand Mall which houses the Sultanate’s first ever Interactive Teller. Alizz is the first bank in Oman to introduce the Interactive Teller technology with NCR, the global leader in consumer transaction technologies. With the Interactive Teller, customers can complete a majority of typical branch transactions right at the ATM with the assistance of a live, remote teller. The bank has also introduced some new innovative products and services for retail customers, while significantly enhancing the security of its cards operations by introducing 3D secure services. The bank is one of six banks in the Sultanate that achieved EMV compliance status from the Central Bank of Oman, which indicates the level of strength and security of its network.
Milestones
The bank was assigned a long term credit rating of omBBB- (investment grade) on a national scale by Capital Intelligence. Alizz is the first Islamic bank in the Sultanate to be rated by an international agency and has achieved a strong investment grade rating at the outset.
The bank has signed strategic agreements with corporate customers for large projects, expected to commence in the near future. This included an agreement with Shaden Development Company to provide long-term Sharia-compliant financing facilities for the implementation of Shaden Al Hail Project Phase 2. In addition, the bank signed a master wakala agreement with Oman Shipping Company (OSC) to invest in a number of the company’s projects. The financing agreement with OSC is the largest and first of its kind carried out by a full-fledged Islamic bank in the country.
On the governance front, Alizz islamic bank was ranked amongst the top five Islamic banks in the GCC and the only Omani bank on the basis of financial disclosure score by the Middle East Global Advisors. The financial disclosure rating measures the extent to which customers and stakeholders are protected through disclosure of ownership and financial information.
The bank continues to work hard to recruit talented and ambitious young Omani nationals; and by the end of 2015, it had 183 Omani nationals working across all divisions, representing an Omanisation rate of over 88 per cent, exceeding the percentage fixed by regulatory bodies for a newly established bank.
Looking ahead
Going forward, the bank will continue to focus on sustainable growth, and strengthen its risk management framework to meet possible challenges and unexpected changes in the macro-economic environment. There will be particular emphasis on liquidity and credit risk management to ensure the bank is maintaining the best asset and liability quality and mix.