CEO Today Middle East Awards

19 CEO TODAY MIDDLE EAST AWARDS 2020 Banking Bank Nizwa reported OMR 10.2 million in net profit representing a 36% growth after tax for 2019. What do you attribute this growth to? Bank Nizwa is at a seminal moment in its history and in the Islamic Finance industry in Oman. Despite the economic challenges, we continue to register robust financial results that reflect the resilience and stability of our assets, while drawing on an effective operational model. Year in and year out, we are proving to our stakeholders the value we offer them as the bank for all and most importantly, the most trusted bank. Our most recent financial results are a clear reflection of our leading position in the Sultanate’s banking sector. We registered OMR 10.2 million in net profit representing a 36% growth after tax for the period up to 31 December 2019. Demonstrating strong resilience and performance across all our departments, the bank’s total assets grew by 19% to reach OMR 1.035 billion. This resilient performance is in line with our efforts to achieve our strategic goals and increase our market share. We also registered a growth of 22% in our operating income reaching OMR 33 million, amid controlled growth of 11% in operating expenses reaching OMR 18.4 million. The main factors behind these results include growth of customer financing, customer deposits, and expansion of the bank’s customer base as more and more people are appreciating the benefits associated with this ever- growing industry in Oman. Our vision is to nurture the growth of the Islamic banking sector and deliver even greater benefits to our customer base and our communities. We are always focused on enhancing our products and service portfolio, systems and building a stronger human capital. We are a step forward towards achieving our 2020 strategy for growth and development. For 2020, Bank Nizwa will continue to raise awareness over the benefits of Islamic banking and capturing market share. We will continue driving technological innovation in all our products and services ensuring our customers receive nothing but the best in class, with their financial requirements being always our top priority. What would say are the challenges of operating in Oman? While the global financial system may be more robust today after recovering from the 2007-2008 crisis, it is still prone to receive systemic shocks – be it from the impact of economic wars, political instability, and even disease outbreaks affecting the global economy and its supply chain. All of these are factors that affect the stability and growth of the financial sector. The latest developments regarding the COVID-19 global outbreak have obviously had an impact on the sector too. These are unprecedented times that require an unprecedented reaction from the financial community in general and the Islamic Finance sector. The pandemic has already laid its shadow on capital markets with economic growth being tested to the limit in 2020. Another devastating effect for economies around the world is the disruption of SMEs. These small businesses are monumental for sustained growth. Their shut-down has a ripple effect, on them, their workforce, their families and then bottom lines and GDPs. We are in for a new reality and a new world. The uncertainty that this pandemic is creating and fostering is eye-opening. We need to adjust and adapt in order to sustain our businesses and our industry and we need to be creative in providing our customer-base innovative solutions in uncharted waters. The more you innovate, the more likely you are to weather this storm and this is what we are aiming for at Bank Nizwa. Some experts look at the growth of financial technology, or FinTech, as a key challenge for established financial institutions like banks and an opportunity for more niche smaller service providers. I actually look at it as a huge opportunity for the banking sector in Oman for all players. Data and technology are converging, so, we are all service providers at the end of the day, and must deliver progressive financial services, yet provide value for customers whether retail or corporate. In Oman, while Islamic Finance has seen unprecedented growth rates, even compared to more mature markets, the main challenge remains in creating that sustainable line of industry professionals to lead the sector now and into the future. Therefore, we are always after targeted awareness campaigns for people across Oman, and especially the younger generation, to attract them to lead rewarding careers or adopt the Shari’a-compliant financial solutions as a valid option in their lives. One more challenge for the financial market, in general, will continue to be liquidity, although Islamic Finance continues to show