Business | Banking
NBO's performance misses predictions
National Bank of Oman (NBO) made its second-biggest quarterly profit ever in the second quarter as it boosted lending and fee income, but the profit growth of 21.4 per cent missed two analysts' forecasts.
- Reuters
- Published: 00:06 July 18, 2008
Muscat: National Bank of Oman (NBO) made its second-biggest quarterly profit ever in the second quarter as it boosted lending and fee income, but the profit growth of 21.4 per cent missed two analysts' forecasts.
Oman's second-biggest bank by market value earned 11.65 million Omani riyals ($30.27 million, Dh110.67 million) in the three months to June 30, compared with 9.59 million riyals a year earlier, Reuters calculated based on first-half data provided by the bank.
The quarterly profit missed forecasts of 12.14 million riyals and 12.50 million riyals in a Reuters net profit survey last month.
"We will put in place strategies and processes that will ensure that income growth remains steady and sustainable," NBO said in a statement on the Oman bourse website yesterday.
NBO made a profit of 22.6 million riyals in the first six months of the year, up 18 per cent from the year earlier.
Oman's $40.3 billion economy is expected to grow 36 per cent this year in nominal terms, according to estimates of ING.
NBO's net interest income rose 13 per cent to 22.2 million riyals in the first half, while non-interest income soared to 19 million riyals, it said.
Recovery of bad debt helped reduce non-performing loans to 4.9 per cent of total loans, the bank added.
Net loans and advances in the six-month period rose to 1.2 billion riyals from 907 million rials at the end of December, while deposits grew to 1.2 billion riyals from 936 million rials, the bank said.
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