Oman banks' earnings drop 6.9% 

(MENAFN) A report issued by the Central Bank of Oman (CBO) showed that the net profits of Omani commercial banks fell by 6.89 percent in the first nine months of 2009 due to high bad loan provisions and slower credit growth, Reuters reported.

The combined net profit of the banking sector dropped to $506.2 million in the January-September period compared to a year-earlier period, the CBO said.

Most Gulf banks booked heavy provisions this year, mainly after concerns over the solvency levels of heavily indebted conglomerates Saad Group and Ahmad Hamad Algosaibi & Bros (Ahab) which started to surface in June.

The two firms are at the center of an estimated $22 billion debt restructuring which has further dampened slowing lending activity to the private sector.