Muscat: ahlibank has announced an oversubscription of its rights issue by 1.29 times. This marks the successful closure of the Bank’s rights issue of ordinary shares of RO30mn.

ahlibank had proposed an additional 300mn shares at 101 baizas per offer share, including issue expenses of 1 baiza per share.

Said Abdullah Al Hatmi, CEO, ahlibank, said: “The purpose of the rights issue was to strengthen the Tier I capital of the Bank and to meet the capital requirement for business growth. I am proud to share that despite a challenging local and global economic environment, there has been an overwhelming response from shareholders, and I would like to thank them for their continued trust and confidence in ahlibank. The issuance reaffirms the Bank’s positive market position and strong investor confidence.”

Post issue, the Bank’s issued and paid-up share will increase to RO194.9mn from the current RO164.9mn.

The rights issue subscription, managed by Ubhar Capital, opened from March 1 until March 15, 2021.

ahlibank is a full-fledged commercial bank, focusing its operations and providing services in retail banking, corporate banking, investment banking, and Islamic banking in Oman. Since its conversion into a full-fledged commercial bank in 2008, it has continued to deepen its commitment to provide beneficial financial services that go beyond the conventional mode and espouse sustainable business practices going forward.

ahlibank’s total assets grew by 7.3 per cent in 2020, reaching RO2.70bn, compared to RO2.52bn in 2019. Customer deposits went up by 12.4 per cent to reach RO1.92bn compared to RO1.71bn.

Loans and advances and financing grew by 8 per cent, reaching RO2.22bn. The Bank’s operating income increased by 2.6 per cent, reaching RO71.50mn in 2020. Operating expenses increased by 9.1 per cent, while the profit for the period was lower by 22.6 per cent, largely due to the pandemic-related slowdown resulting in higher credit provisions.

ahlibank has been on a steady growth trajectory and the year-end financial performance is an indicator that it has been able to turn the crisis into an opportunity in terms of asset growth, customer deposits, and other key financial indicators.

As a result, the Bank has won a number of awards in 2020, including the prestigious ‘Best Performing Company’ award in the Large Capital category for the third consecutive year at the 10th edition of the Alam Al-Iktisaad Awards and the ‘Best Bank-Mid Size’ award at the Oman Banking & Finance Awards 2020. The Bank aims to continue its robust and prudent growth strategy and remains focused on high-quality assets and well-managed liquidity.

ahlibank is well-positioned to build further on its excellence in the market and capitalize on new opportunities by continuing to add value for its clients and customers. As it progresses on its remarkable growth path, it has embarked on the ambitious project of expanding its head office building based on smart and innovative infrastructure, which will contribute to providing high-quality banking services and products for its existing and new customers.

Over the years, the Bank has proven its strong commitment to the enrichment of youth, paying significant attention to nurturing young Omani talent. It envisions digital excellence as the way forward, setting new benchmarks in the industry and delivering outstanding shareholder value.