Oman banks' 9-month profits slid 6.9% - cenbank

(Getty Images)

The net profits of Omani commercial banks fell 6.89 percent in the first nine months of 2009 due to high bad loan provisions and slower credit growth, the central bank said in a bulletin.

The combined net profit of the sector dropped to 194.9 million rials ($506.2m) in the January-September period compared to a year-earlier year, according to the report obtained on Thursday.

"The year-on-year decline in net profits could be explained by higher provisioning by commercial banks and by deceleration in the pace of credit growth," the central bank bulletin said.

Most Gulf Arab banks booked heavy provisions this year, mainly after concerns over the solvency levels of heavily indebted Saudi conglomerates Saad Group and Ahmad Hamad Algosaibi & Bros (AHAB) which started to surface in June.

The two firms are at the centre of an estimated $22bn debt restructuring which has further dampened slowing lending activity to the private sector. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM