Sunday 28 / April / 2024
Muscat: Bank Nizwa, the Sultanate of Oman's leading Islamic bank, recently held its Annual General Meeting and Extraordinary General Meeting under the chairmanship of Sheikh Khalid Abdullah Ali Al Khalili, Chairman of Bank Nizwa's Board of Directors, in the presence of board members, executive management, and shareholders.
The bank reviewed its performance during the fiscal year ending on December 31, 2023, during which it achieved a strong financial performance. This remarkable accomplishment is ascribed to the bank's prestigious standing, characterised by its resolute commitment to reliability, integrity, and unparalleled customer service in the banking industry. Furthermore, the strategic diversification of its product portfolio has played a pivotal role in augmenting its financial performance.
Bank Nizwa witnessed substantial growth in total assets, registering an impressive increase of 8 per cent, compared to the same period in 2022. Furthermore, the bank recorded its highest net profit to date, amounting to OMR17.02 million, an increase of 13 per cent compared to the previous year's net profit of OMR15.05 million. Total assets also grew to reach OMR1.6 billion, while the total financing portfolio increased by 12 per cent to reach OMR1.38 billion. Customer deposits grew by 6 per cent to reach OMR1.26 billion and total shareholders' equity increased by 3 per cent to reach OMR253.5 million. Additionally, the bank also increased operating expenses by 14 per cent, leading to enhanced overall performance.
Commenting on the bank’s growth trajectory, Sheikh Khalid Al Khalilisaid, “Bank Nizwa's strong performance in 2023 highlights its resilience, effective management strategies, and commitment to delivering value to stakeholders in a dynamic operating environment. These indicators also highlight the concerted efforts of the management and employees to enhance financial performance and achieve strategic goals while advancing our forward-thinking vision. On that note, we would also like to extend our gratitude to our shareholders, the Central Bank of Oman, and regulatory authorities for their invaluable support throughout our journey.”
During the EGM, the proposal to establish a Mudaraba Sukuk issuance program, comprising five separate issues from time to time, each with a total value of OMR50 million, was approved, along with the authorisation of requisite measures for the proposed issuance process. At the AGM, the bank’s shareholders deliberated and approved the Board of Directors' Report for the fiscal year ended December 31, 2023, as well as the Corporate Governance Report and Auditor's Report on the audited financial statements for the same period. Additionally, the meeting disclosed the Sharia Supervisory Board’s Report for the year ended December 31, 2023, reflecting the bank's pledge to transparency and compliance with Islamic finance principles.
During the meeting, the proposal to distribute cash dividends to shareholders at the rate of 2.3 Baisas per share was approved. Additionally, approval was granted for the distribution of free Sukuk (Mudaraba) to shareholders, compulsorily convertible into shares on the same date. This offering, equivalent to 4.47 Sukuk per 100 ordinary shares, underscores the bank's dedication to providing value and fostering investor confidence.
As Bank Nizwa maintains its position at the forefront of the Islamic finance realm, it remains committed to actively fostering socio-economic development. Focusing on Omanisation initiatives and extending support to the community through various social welfare programs, the bank is consistent in its efforts to catalyze positive change. Offering a comprehensive array of Sharia-compliant financial solutions, Bank Nizwa continues to empower individuals and facilitate sustainable progress, thus creating lasting societal value.
