NBO reports 94pc decline in net profit for first half this year

National Bank of Oman (NBO) has reported a 94 per cent decline in net profit at 362,000 riyals for the first half of this year against 6.04 million riyals for the corresponding period last year.

Loan loss provisions forged ahead by 46 per cent to 12.6 million riyals from 8.6 million riyals during the period under review, said John Finigan, chief executive officer.

Operating profit of the bank was also lower at 12.39 million riyals against 16.06 million riyals for the corresponding period last year. This indicates a 23 per cent decline.

Similarly, interest margin declined by 18 per cent from 19.6 million riyals to 16.09 million riyals.

Referring to the marginal reduction in the bank's gross advances from 810 million riyals at the end of last December to 766 million riyals at the end of June this year, Finigan said that this was primarily due to the concerted policy of shifting emphasis to reduce the risk profile of the advances portfolio.