National Bank of Oman (NBO) reported a net profit of RO51.4mn for the year ended December 31, 2019, an increase of 1.6 per cent compared with RO50.6mn net profit recorded in the previous year.
NBO recently announced its initial unaudited financial results for the year 2019. Unaudited financial results are subject to approval of external auditors, board of directors, shareholders of the bank and the Central Bank of Oman, the bank said in a filing to the Muscat Securities Market.
In terms of net interest income and income from Islamic financing, the bank posted a growth of 1.7 per cent in 2019 at RO94mn compared to RO92.4mn in the corresponding period in 2018. However, at the same time the bank has suffered a setback in terms of other operating income, which also weighed on the total operating income. The bank’s total operating income for the year 2019 remained almost flat at RO128.3mn as against RO129mn it reported in the previous year.
Besides registering a muted growth in total operating income, the bank also reported a rise in its operating expenses, which capped the rise in net profit for the year. NBO’s operating expenses for the year 2019 increased by 2.9 per cent to RO63.6mn as against RO61.7mn reported in 2018.
During the year under consideration, the bank’s income was impacted by a lacklustre performance in providing loans and other finances to its customers. The bank’s net loan, advances and financing activities slightly declined to RO2.8bn as of the end of 2019 from RO2.81bn a year ago.
However, in terms of customer deposits and total assets, the bank’s performance was slightly better in comparison to other parameters.
NBO registered a growth of 3.2 per cent in customer deposits for the year 2019 at RO2.53bn as against RO2.45bn in the previous year. The bank’s total assets in the year 2019 rose to RO3.64bn thus registering a growth of 2 per cent compared to RO 3.57bn it reported in 2018.
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