Oman- NBO reports 16 jump in 9M net profit

10/4/2015 2:48:48 PM

(MENAFN- Muscat Daily)Muscat-

Kick-starting the third-quarter earnings season in the sultanate the National Bank of Oman (NBO) on Sunday reported a 16 per cent growth in net profit for the nine-month period ended September 30 2015.

Net profit rose to RO43mn from RO37.1mn in the corresponding period of last year an NBO listing with the MSM said.

Net interest income and income from Islamic financing increased 16 per cent to RO69.2mn for the January-September period this year against RO59.9mn a year earlier. Operating income rose 18 per cent to RO28.3 per cent from RO24mn.

NBO reported growth in net loans advances and financing activities which rose 12 per cent to RO2.53bn as on September 30 2015 compared with RO2.25bn a year ago.

The bank's customer deposits and unrestricted investment accounts dropped by 11 per cent to RO2.43bn from RO2.72bn.

EFG-Hermes in a client note said NBO's third-quarter earnings came in at RO14.9mn four per cent below its estimates of RO15.6mn for the quarter. It said while loan growth and spreads improved earnings missed estimates on higher operating expenditure. 'Though earnings were marginally below our estimates improvement in net interest spreads and strong loan growth were encouraging' the brokerage said.

'Revenues were slightly ahead of our estimates supported by 9bps sequential improvement in net interest spreads and steady loan growth momentum. Operating costs in the quarter surprised negatively driving the earnings miss' EFG-Hermes added.

NBO's total assets fell four per cent to RO3.26bn.

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