Bank Muscat
Bank Muscat take home the award this year for the impressive turn-around in its results and its continued expansion in Oman and elsewhere in the Middle East.
Hit by a 53% decline in net profit in 2001 due to tough local competition, the bank bounced back strongly last year, raising net profit by 195.5%. It lifted its ROE to 18.1% in 2002 from 7.8% in 2002.
The bank’s continued expansion, holding its lead position in the Omani banking market, was a major factor in last year’s success. Its market share of retail deposits, for example, rose to 31.2% from 26.2%. This was primarily due to an upgrade of its cash machines plus the launch of internet banking. Bank Muscat’s share of loans and also climbed to 37.4% from 35%.
While it dominates nearly every area of Omani banking, Bank Muscat is not resting on its laurels. Through last year’s acquisition of Al Ahlia Securities, it entered the asset management and brokerage services market. It also bought the credit card merchant acquirer business from HSBC Oman, further consolidating its dominant position in retail banking.
Outside of Oman, the bank took over the Bahrain branch of Dutch bank ABN AMRO as part of its goal of becoming a major player in the Middle East in the next eight years.
“Our ability to manage change has been the core reason for our success this year,” said Abdul Razak Ali Issa, CEO of Bank Muscat. “Banking, in our target market of the Gulf, south Asia and eastern Africa is very competitive. Organic growth would not give us the pace of growth that we seek. Mergers and acquisitions are the way ahead for us.”
