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NBO net profit at RO10.9m

MUSCAT— National Bank of Oman (NBO) has posted a net profit of RO10.9 million for the first nine months of the year, compared to RO4.1 million in the corresponding period of 2004.

The bank said its net worth had increased to RO157 million due to the private placement of 10 million shares to Commercial Bank of Qatar in July 2005 at a total price of RO4.450 per share. The market capitalisation also increased from RO171 million as at December 2004 to RO320 million as at September 30.

"Based on the increase in capital, the bank has strengthened its capital adequacy position and now has a robust BIS capital adequacy ratio of 25.67 per cent as at September 2005, significantly higher than the minimum 12 per cent level stipulated by Central Bank of Oman," a statement said.

Provision coverage moved up from 81.5 per cent to 84.6 per cent.

Operating costs of RO14.6 million was lower by RO500,000 million than the RO15.1 million charge recorded for the same period in 2004.

Andrew Duff, Chief Executive Officer, said he was "extremely pleased that the problem loan portfolio is now contained." He added that he expected recoveries to exceed additional provisions in the immediate future and with the additional capital and recent improvement in external ratings by Moody's, the bank is well positioned for future growth.