National Bank Of Oman Profit Up

The bank made a Q2 net profit of $26.8 million, up on analysts’ expectations and last year’s results.

National Bank of Oman, the sultanate’s fourth-largest lender by market capitalisation, posted a 13.2 per cent rise in second-quarter net profit, edging slightly ahead of analysts’ expectations.

The lender made a net profit of 10.3 million rials ($26.8 million) in the three months to June 30, according to Reuters calculations based on a statement to the Muscat stock exchange on Monday, up from 9.1 million rials in the same period of 2011.

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

First-half profit at NBO was reported as 19.9 million rials, a 16.4 per cent increase from the 17.1 million rials recorded for the same period in 2011.

Loans and advances grew 20 per cent year-on-year to 1.86 billion rials at the end of June from 1.55 billion rials at the same point last year.

Total assets stood at 2.49 billion rials at the end of June, a 23.3 per cent rise versus 2.02 billion rials at the same point in 2011.

Shares in NBO ended flat on Monday, prior to the disclosure of results, having fallen 8.7 per cent year-to-date. This compares to the main Muscat index which has dropped 4 per cent in 2012.

Earlier this week Bank Muscat, Oman’s largest lender by market value, posted a 19 per cent increase in second-quarter net profit, slightly higher than analysts’ expectations.

The bank made a net profit of 35 million rials ($90.9 million) for the three months to June 30, according to Reuters’ calculations, up from the 29.4 million rials in the same period last year.

Loans and advances rose 21 per cent year-on-year to 5.18 billion rials at the end of June compared to 4.27 billion rials at the same point last year, an Oman bourse statement said.

Customer deposits rose 16.3 per cent, largely driven by demand and saving deposits, the statement said, while provisions for the six months to June 30 totalled 25 million rials, down 2.8 per cent from the prior-year period.

Bank Muscat said last month it was planning to raise 96.7 million rials from a rights issue due to take place July 9-23. Capital raised from the offering would be used to fund credit expansion and its future Islamic banking window.

In a separate bourse announcement on Monday, Bank Muscat said the rights issue would close a day earlier, on July 22, because July 23 had been declared a public holiday in Oman.