Muscat: National Bank of Oman (NBO) held its Annual General Meeting (AGM) and an Extraordinary General Meeting (EGM) on March 30 at the bank’s headquarters in Al Azaiba. Presided over by Amal Suhail Bahwan, Chairperson of NBO, the meeting was attended by the board members, senior management and shareholders.
During the meeting, NBO’s shareholders approved the payout of a 3.7% cash dividend for 2021 at the rate of 3.7 baisa per share. Shareholders also approved the appointment of the members of the Sharia Supervisory Committee of Muzn, NBO’s Islamic window, in addition to the appointment of the external auditors and an independent consultant to evaluate the performance of the Board of Directors for the fiscal year ending 31 December 2022.
The Extraordinary General Meeting (EGM) saw the approval of capital raising plans which may take the form of a new issue of Additional Tier 1 capital for a benchmark size in the region of up to $300 million. Such instruments may be listed locally on the MSX, internationally on a foreign exchange and/or issued on a private placement basis.
“Overall, we have been pleased with the bank’s performance during 2021. Our core business remains strong and we have further diversified revenue streams and maintained a strong balance sheet. We believe it is a sign of our agility on the one hand, and our growing global reputation as a safe investment, on the other,” said Amal Suhail Bahwan, Chairperson of NBO.
She added, “As we embark on our 2022 objectives, NBO is resolved to identify further opportunities for growth and take critical steps towards protecting the legacy we have built in the market as a future-ready and world-class bank that continues to create value for our customers, employees and the wider community.”
In 2021, NBO achieved a net profit of OMR 30.3 million, an increase of 66.8 per cent compared to the previous year.
Net Interest Income for the year 2021 is OMR 91.6 million, showing an increase of 0.7 per cent over last year. Fee Income for the year 2021 is OMR 31.8 million, compared to OMR 26.1 million last year, strong growth of 21.9 per cent due to robust performance across various fee lines.
Operating expenses for the year 2021 were OMR 63.5 million, compared to OMR 63.8 million for the last year, a decrease of 0.5 per cent, despite the continuing investments made for growth. The reduction year on year is due to various efficiency initiatives undertaken across the bank.
Operating Profit, as a result, grew strongly 12.6 per cent, year on year. Net Impairment for the year 2021 was OMR 24.0 million, compared to RO 31.3 million for the last year, a decrease of 23.4 per cent. The reduction is on account of the conservative provisioning approach undertaken at the time of the pandemic.
Gross Loans and Advances as of 31 December 2021 are at OMR 3.2 billion, with a growth of 6.4 per cent over last year, as the bank continued to support the borrowing needs of its customers. Customer deposits correspondingly are at OMR 2.9 billion, showing a growth of 15.5 per cent over last year. The bank’s core equity and total capital Adequacy Ratio as of December 2021 stand at 11.8 per cent and 15.8 per cent respectively.
