Bank Dhofar Q3 profit up 5%, below forecasts

Bank Dhofar, Oman's second-largest bank by market value, fell short of forecasts with a 5 percent rise in third-quarter net profit.

Third-quarter net profit rose to 7.7 million rials ($20 million) from 7.32 million in the third quarter of 2009, according to Reuters calculations, below the average analyst estimate of 8.71 million.

Reuters calculated the profit for the quarter based on the lender's nine-month net profit which stood at 25.4 million rials, according to a statement to the Muscat bourse on Thursday.

It had reported first-half net profit of 17.7 million rials.

Dhofar International Development and Investment Holding Co (DIDIC) said in September it sold 2.5 percent of its capital in Bank Dhofar to reduce borrowing and invest in other sectors.

Fitch affirmed its rating on the bank at BBB+ with a stable outlook in August, saying that the individual rating reflected the bank's strong franchise, good profitability and adequate capitalisation as well as its rapid loan growth and relatively low non-performing loans.

Bank Dhofar shares were trading up 0.5 percent at 0713 GMT on the Muscat bourse. ($1 = 0.3850 rial) (Reuters)