National Bank of Oman Q4 profit jumps 48%

Sultanate's fourth-largest lender by market cap made a net profit of US$26.5m

National Bank of Oman, the sultanate's fourth-largest lender by market capitalisation, posted a 47.8-percent rise jump in fourth-quarter net profit on Sunday, beating analysts' expectations.

The lender made a net profit of OMR10.2m (US$26.5m) in the final three months of 2012, according to Reuters calculations based on previous financial statements, up from OMR6.9m in the same period in 2011.

Four analysts polled by Reuters had estimated an average fourth-quarter profit of OMR8.7m.

Full-year profits stood at OMR40.7m, climbing 19 percent on the previous year's figure of OMR34.2m, a statement to the Muscat stock exchange said.

The bank was helped by a 15 percent rise in net interest income, which increased to OMR67.2m in 2012.

Loans and advances grew by 14 percent in 2012, hitting OMR1.91bn against OMR1.67bn at the end of 2011.

Customer deposits rose 18 percent year-on-year, standing at OMR1.89bn against OMR1.6bn at the end of 2011. Total assets gained 14 percent in the same period to OMR2.54bn at the end of 2012.

Fitch Ratings affirmed NBO's BBB+ rating in November, citing improving profitability, liquidity and asset quality on account of the bank's new strategy.

However, it noted the bank's weakening capital position - its core capital ratio declined 0.5 percent in the first nine months of 2012 to 12.8 percent on the back of strong growth - at a time when other Omani banks are mulling rights issues.

NBO shares closed 0.7 percent lower on the Muscat bourse Sunday.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Oman gains breathing space with jumbo $5bn bond sale

Oman gains breathing space with jumbo $5bn bond sale

Order books for the issue totalled $20bn, showing that Oman can...

Most Discussed