Bank Dhofar Q3 Net Profit Down

Bank Dhofar, Oman’s third-largest bank by market capitalisation, posted a 10.7 per cent drop in third-quarter net profit on Sunday, missing analysts’ expectations, Reuters calculations show.

The lender made a profit of 9.2 million rials ($23.9 million) in the three months to September 30, Reuters calculated, compared with a profit of 10.3 million rials in the prior-year period.

Analysts polled by Reuters had estimated an average quarterly profit of 10.1 million rials.

Reuters calculated third-quarter profit from previous financial statements. Nine-month profit was reported as 28.7 million rials, according to a statement to the bourse, a significant jump on the 5.7 million rials Bank Dhofar made in the corresponding period of 2011.

Bank Dhofar’s earnings last year were hit by a 26.1 million rials provision the bank took in the second-quarter after it lost a court case with Oman International Bank and Ali Redha Trading and Muttrah Holding over the ownership of 1,925,000 of Bank Dhofar shares.

Customer deposits grew 17.8 per cent year-on-year to 1.6 billion rials at the end of September, the bank said. However, compared to the end of June, they fell 0.7 per cent.

This dragged on total assets, which stood at 2.12 billion rials at the end of September, up 19.3 per cent on a year ago but only marginally higher on the 2.1 billion rials recorded at the end of the second quarter.

Loans and advances stood at 1.66 billion rials at the end of September, up 17.1 per cent from the same point in 2011. On a quarterly basis, the figure grew 2.8 per cent from the end of June.

Shares in Bank Dhofar have fallen 19.6 per cent year-to-date, underperforming the general index which has gained 0.3 per cent.