Ahlibank reported a net profit of RO13.1mn for the six months ended June 30, 2014, up five per cent from RO12.5mn in the corresponding period of the previous year.
Operating income increased by four per cent to RO25.3mn from RO24.3mn in the first half of last year. Operating expenses were controlled at RO8.2mn, resulting in a cost-to-income ratio of 32.3 per cent, the bank said in a disclosure of its preliminary results to the Muscat Securities Market (MSM).
On a sequential basis, the bank’s net profit increased by 16.3 per cent to RO7mn in the second quarter of this year, while operating income was up five per cent to RO13mn, according to a research note from Al Maha Financial Services.
Ahlibank’s net loans and advances stood at RO1.25bn as on June 30, 2014, posting an increase of 20 per cent from RO1.04bn at the end of June 2013. On a sequential basis, net credit grew by 6.8 per cent from RO1.17bn at the end of the first quarter of 2014.
“Loan growth of 20 per cent has been established with a prudent risk management approach and in a diversified manner. The loan book continues to be of a very high quality as reflected in our NPL ratio of one per cent as of June 30, 2014,” the bank said.
The bank had registered the highest loan-book growth of 20 per cent among Oman's listed banks in the first quarter of 2014
Customer deposits reached RO996mn as at the end of June 2014, increasing 7.9 per cent year-on-year and 1.9 per cent quarter-on-quarter. Customer deposits have grown in line with the strategy to build a stable low cost deposit base, the bank disclosure said.
Ahlibank trades at a price by volume (PBV) of 1.35 and an annualised price to earnings (PE) of 9.64, which is at a discount to its quarterly historic average PE of 9.95, the Al Maha Financial note added.© Copyright - Muscat Daily