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NBO reports 29 per cent decline in first quarter profit

18 Apr 2021

National Bank of Oman (NBO) has reported a 29.5 per cent decline in net profit for the three months period ended March 31, 2021, mainly due to higher provisions made by the bank compared to the same period of last year.

Net profit decreased to RO6.9mn in the first quarter of 2021 compared to RO9.8mn reported in the corresponding period of 2020, according to NBO’s preliminary financial results submitted to the Muscat Stock Exchange.

NBO said that net impairment charges for the first three months of 2021 rose by 91.6 per cent to RO6.9mn as compared to RO3.6mn for the corresponding period of last year.

‘Given the current operating environment, the bank continues to be prudent in its approach towards loan-loss provisions by creating additional management overlays,’ NBO said.

The bank’s net interest income and income from Islamic financing decreased by 1.3 per cent at RO22.1mn in the first quarter of 2021 compared to RO22.4mn recorded in the same period of last year.

Other operating income grew by 8.4 per cent to RO9mn during the January–March quarter compared to RO8.3mn in the corresponding period of 2020. The strong growth in other operating income, NBO noted, was a result of robust performance in both retail and wholesale segments.

NBO’s operating expenses for the three months ended March 31, 2021 came at RO16mn compared to RO15.5mn in the first quarter of last year, showing an increase of 3.2 per cent as the bank continues to reposition itself for growth.

The bank’s loan-book grew by 1.5 per cent as net loans, advances and Islamic financing increased to RO2.910bn as of March 31, 2021 from RO2.866bn a year ago.

Total customer deposits (including Islamic customer deposits) decreased by 3.5 per cent to RO2.598bn as of March 31, 2021 from RO2.691bn a year ago.

NBO’s total assets marginally decreased by 1.1 per cent to RO3.773bn at the end of the first quarter of 2021 compared to RO3.816bn a year ago.

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