AbdulRazak Ali Issa, Chief Executive, Bank Muscat firmly believes that a continuous improvement in human resources is imperative for the bank’s continual success.
HR initiatives
Bank Muscat recognises that its employees are the mainstay to meeting strategic objectives. The bank is focused on continuously enhancing the capabilities of its human resources and 2014 witnessed some very significant and strategic projects towards this endeavour. The launch of the Talent Management & Succession planning programme and successful conclusion of the Development Centre are reinforcements of this resolve to develop capable and versatile leaders. In 2014, the bank nominated 12 executives for various programmes at leading business schools such as Harvard Business School, and the Institute for Management Development, Switzerland.
The bank recruited and deployed 592 employees across all business functions and achieved Omanisation of 93.85 per cent as at December 31, 2014. Over 8,225 learning opportunities were provided by the Learning Centre through 899 courses and 18,310 training man-days were covered during 2014.
Retail and corporate lending
Bank Muscat offers the complete range of retail and corporate banking products and services. Net loans and advances increased by 8.4 per cent to RO6,353mn ($1.6bn) in 2014 as against RO5,864mn ($1.5bn) in 2013. Stemming from the all-round growth in the economy, the Corporate Banking department registered considerable growth in both funded and non-funded business. Enhancing customer reach, three additional exclusive branches for corporate customers were opened in the Capital, Batinah and Dhofar regions.
In project and structured finance, the bank’s expertise in key sectors along with innovative structuring capabilities enabled to cater to the financing requirement of various large-scale projects in the Sultanate. The bank maintained its leadership position by playing an integral part in several key infrastructure projects.
Supporting SMEs
Alongside participation in large-scale projects, the bank has taken a lead to strengthen the SME sector in Oman. During 2014, the bank launched its unique non-collateral SME finance addressing a critical requirement of entrepreneurs in Oman, which has evoked strong response. The innovative banking solution has broadened financial access for entrepreneurs to avail of SME finance without collaterals.
The bank is a leading player in financing businesses and strengthening the SME foundation in Oman. In association with the US-based Project Management Institute, the bank launched ‘Al Wathbah Academy’ to train and educate young entrepreneurs in the SME sector. The bank also facilitated various opportunities in 2014 to address the challenges faced by women entrepreneurs.
Financial performance in 2014
Bank Muscat posted a net profit of RO163.23mn for the year ended December 31, 2014 compared to RO152.19mn reported during the same period in 2013, an increase of 7.3 per cent. The basic earnings per share were RO0.075 in 2014 against RO0.072 in 2013. The banks’ capital adequacy ratio stood at 15.92 per cent as on December 31, 2014 after appropriation for proposed dividend for the year 2014 against the minimum required level of 12.625 per cent as per Basel III regulations issued by the Central Bank of Oman (CBO).
Branch, ATM and CDM network
Bank Muscat has the largest network of 140 branches, 435 ATMs and 166 CDMs in Oman. The bank’s biggest footprint and presence across the Sultanate and world class products and services are helping to make the vital differentiation, with the focus on its ‘Let’s Do More’ vision. The bank remains committed to providing world class banking services across the Sultanate.
Islamic Finance
Meethaq, under the umbrella of Bank Muscat, is the centre for Islamic financial service in Oman. Meethaq accounts for approximately 50 per cent share in financing of the total Islamic banking market in Oman. Meethaq operation is completely segregated from its conventional counterpart, supervised by a sharia supervisory board. With a paid-up capital of RO150mn, Meethaq Islamic Banking is focused on developing as a benchmark Islamic financial institution on both the local and regional level.
Future plans
As the flagship bank in Oman, all the key business lines of Bank Muscat are focused on recording a healthy performance in 2015. The bank is well positioned to leverage on the large network of branches and other delivery channels to target the growth potential and cross-sell opportunities.
As the country’s economy is poised to maintain its growth momentum, new opportunities are available for corporate banking business. The year 2015 will be a period of increasing competition for the banking sector in Oman with the launch of competitive channels and new products to cater to the various new and growing sectors. Even as the bank seeks to fulfill its social responsibility in meeting the financial requirements of citizens and residents, the cost of funding remains competitive on the back of prevailing strong liquidity in the market which will help to maintain profit margins.