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Bank Nizwa Records Positive Performance In Q1 2021

Muscat: With the popularity of Islamic banking on the rise, Bank Nizwa has been leading the way for change with innovative Islamic financing products, a focus on customer service and a collaborative approach to supporting local businesses. Adopting the necessary foresight to remain abreast in the market while aligning itself to Oman’s Vision 2040, Bank Nizwa has devised its 2025 strategy for growth. While continuing its growth on this strategic roadmap, Bank Nizwa has recorded outstanding performance in its financial results for the first quarter ended March 31, 2021.

In the year 2020, Sharia-compliant banking assets accounted for 14.5 percent of the total banking assets in Oman, a number that is expected to grow. Bank Nizwa was a significant contributor to this figure.

As a testament to its progress, Bank Nizwa has achieved this excellent performance across all its departments, even in the face of unprecedented challenges. It has recorded three months net profit of RO 3.009 million, indicating an 8 per cent growth after tax for the period ended 31 March 2021, compared to RO 2.78 million in the same period in 2020. The bank’s total assets also grew by 18 per cent to reach RO 1,252.11 million compared to RO 1,058.89 million in the preceding year. Its growing preference amongst customers is reflected in its increasing customer deposit portfolio which increased by 14 per cent to RO 956.6 million against RO 837 million on a year-on-year basis. The bank’s financing to customers rose by 19 per cent to RO 1,047.2 million for the year ending 31 March 2021 compared to RO 880.5 million in 2020.

“We attribute our success to our customers and shareholders who have invested an immense amount of faith in our capabilities. Our values of being driven, principled, innovative and helpful are the pillars of our strategic approach in providing a diverse set of products and services, and the loyalty of our customers is testimony that we have been able to fulfil our commitments,” said Sheikh Khalid Abdullah Ali Al Khalil, Chairman of Bank Nizwa. “While we focus on our strategies for 2021 and chart the way ahead for 2025, our core values will remain constant.”

As the leading and fastest-growing Islamic bank in the country, Bank Nizwa has three wide strategies for 2021. The first one comprises of working on raising its capital. Simultaneously, Bank Nizwa is also going to continue playing its part in contributing to the development of the economy as it leads the way as the most prominent Islamic bank in the Sultanate. Learning from the challenges faced by conventional banks during the pandemic, Bank Nizwa will benefit from the advantages of being a Sharia-compliant bank and ensure that it registers growth even in exceptional situations.

With a noteworthy track record of successfully adapting to the changing market scenarios, the bank is geared to address the challenges in the economy while continuing to extend its unfaltering support to assist in the economic revival process. It endeavours to do so by capitalizing on its growing, multi-industry portfolio under its Wholesale Banking Group (WBG), supporting SMEs through incubation facilities and advisory, addressing the growing needs of Public and Private Participation (PPP), and offering trade finance options to help businesses prosper. 

“Bank Nizwa is committed to supporting the government in attaining its Vision 2040. In the past year, our efforts in this direction have been much appreciated and we will continue to do our best to enhance the banking experience with innovative Islamic finance products, whether it is for corporate customers, SMEs or government clients. At the same time, we will also take all efforts to ensure the Islamic banking sector continues to grow steadily. The strategies to achieve our vision have been laid out for the coming year. This is in line with the targets set for the banking sector and will certainly help us achieve our milestones for 2025, keeping the overall Oman Vision 2040 in mind,” Sheikh Khalid said. “In line with the bank’s five years strategy up to 2025, Bank Nizwa will also increase its capital by RO 75 million in 2021 to support the next phase of growth and increase returns for the shareholder.” 

Dedicated to bringing about a positive change in the economic situation, Bank Nizwa’s strategies to achieve its targets for 2025 are helping shape the future of a Halal economy in the Sultanate. 

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