Oman’s Bank Dhofar Registers 0.2% Growth In Q1 Profit

Bank Dhofar, Oman’s second-largest bank by market capitalization, saw its first-quarter net profit rise marginally by 0.2 percent, the bank said in a statement on Thursday.

Net profit for the first three months of 2012 stood at 9.4 million rials ($24.4 million), up slightly from the 9.39 million rials it posted for the same period of 2011.

Loans and advances rose 18.3 percent during the quarter to 1.58 billion rials, up from 1.33 billion rials at the end of March 2011.

Total assets stood at 2.04 billion rials, up 20.3 percent on end-March 2011’s figure of 1.7 billion rials and 34.2 percent from the 1.52 billion rials held at the end of 2011.

In a note to clients, EFG Hermes said the net profit was broadly in line with its expectations and the loan growth indicated that credit growth in Oman remained strong.

Bank Dhofar recorded a 58 percent drop in full year net profit in 2011, citing a 26.1 million rials provision the bank took following a court case loss with Oman International Bank and Ali Redha Trading and Muttrah Holding over the ownership of 1,925,000 of Bank Dhofar shares.

The bank’s shares ended up 2.7 percent, with the results announced after trading had concluded. The stock has risen 5.7 percent year-to-date, Reuters reported.