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BankDhofar’s profit rises to RO26.6mn in nine months

1 Nov 2020

BankDhofar reported a year-on-year increase of 2.78 per cent in its net profit for the nine months period ended September 30, 2020.

The bank’s net profit rose to RO26.64mn for the first nine months of this year compared with RO25.92mn reported in the same period of 2019, according to BankDhofar’s financial report submitted to the Muscat Securities Market.

BankDhofar said its net interest income and income from Islamic financing activities came at RO79.4mn for the January-September period of 2020 against RO83.64mn earned during the same period of last year, a decrease of 5.07 per cent. However, non-funded income such as fees and commissions, foreign exchange profit, investment income etc. increased by 7.35 per cent year-to-date in September 2020 reaching RO16.07mn compared to RO14.97mn in the same period of 2019.

The bank achieved a total operating income of RO95.47mn for the nine months period ended September 2020 as against RO98.6mn in the same period of 2019, a decrease of 3.17 per cent.

BankDhofar’s loan-book grew by 7.9 per cent this year as net loans, advances and financing to customers increased to RO3.28bn as of September 30, 2020 from RO3.04bn a year ago. Customer deposits (including Islamic deposits) decreased by 3.3 per cent at RO2.64bn as of September 30, 2020 compared with RO2.73bn a year ago.

The bank said its net provisions (expected credit loss) for the first nine months of 2020 dropped to RO11.74mn compared to RO16.38mn for the same period of 2019. ‘The 2019 net provisions included the classification of certain large accounts reflecting the market conditions. The 2020 net provisions include management overlay of precautionary provisions considering the economic impact due to the COVID-19 pandemic and continued pressure on oil prices.’

BankDhofar’s Islamic window Maisarah Islamic Banking Services continued to report strong growth in earnings, assets, financing and the operating profit. Maisarah’s gross financing portfolio increased from RO452.73mn as of September 30, 2019 to RO481.13mn as of September 30, 2020, registering a growth of 6.27 per cent.

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