Bank Muscat SWOT and PESTLE Analysis

Strengths

1. Flagship Financial Institution in Oman: It is the largest Bank in Oman with strong presence in all banking services. It has a network of 150 branches in Oman, 2 foreign branches, and 2 representative branches, nearly 650 ATMs & CDMs and 10,000 PoS terminals. Customer base exceeds 1.76 million. It has a workforce of 3500+ employees. Moreover, it has been the recipient of best bank award in Oman from many agencies.

2. Strong Financial Fundamentals: Bank Muscat has been maintaining Capital adequacy Ratio (CAR) consistently around 16 % for the last 4-5 years which is one of the healthiest in GCC (Gulf Co-Operation Council). It has Operating profit & Net profit ratios growing at a CAGR of 9.5 % & 16.50 %. Further it has a very healthy NII (Net Interest income), growing at a rate of 6.9 % YoY (1). Capital Adequacy Ratio (CAR), the most significant ratio in any bank is the healthiest in Bank Muscat, consistently around 16 % for the last 4-5 years. To complement it are the other financial indicators like asset base, gross deposits and loans, net profit which are in sound position. Also its assets and net profit is more than three times its nearest competitor, Bank Dhofar (2).

3. Successful Islamic Banking Operations: Bank Muscat has a well-established Islamic banking offering – Meethaq. Its Islamic financing portfolio has grown by a CAGR of over 60% in the last four years. It has 16 dedicated branches for niche Islamic banking offerings which are sharia compliant and offers comprehensive portfolio of products (2).

4. Large Corporate Clientele: Bank Muscat has a large corporate client base with more than 6200 customers and is the leading lender for top tier organizations in Oman and possesses strong project financing capabilities. It provides the complete spectrum of y of corporate banking services and its Corporate Loans stand at US$ 11.08 billion far ahead of its nearest rival Bank Dhofar whose corporate lending stands at US$ 3.81 billion as of March 2016 (2).

5. Technology Investments: Bank Muscat’s investments in technology over the years has is paying off with increased degree of sophistication leading to higher efficiency and cost savings. Its digital banking channels - e-payments and web services have not only increased the sales and service portfolio but has also resulted in better customer experience (2).

Weakness

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Opportunities

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Threats

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