Strong net interest income and asset growth helped National Bank of Oman (NBO) post a 24 per cent year-on-year increase in first quarter net profit.
In numbers released to the Muscat Securities Market (MSM) on Tuesday, NBO said first quarter net profit improved from RO7.74mn in 2011 to RO9.62mn in the corresponding period in 2012.
Total assets increased 27 per cent from RO1.87bn to RO2.37bn, with loans and advances to customers also growing 27 per cent from RO1.41bn in 2011 to RO1.79bn in 2012.
Customer deposits also grew by 27 per cent from RO1.36bn in the first quarter of 2011 to RO1.72bn in the first quarter of 2012, with net interest income improving 21 per cent from RO13.4mn to RO16.18mn.
Speaking to Muscat Daily, NBO financial controller V Balasubramanian said that NBO had seen strong 'all-around growth' in the first quarter.
He said, "There has been strong asset and net interest income growth. We were able to hold on to our margins, and there has also been a good pick-up in corporate and retail notes."Operating income grew 18 per cent from RO21mn in 2011 to RO24.8mn in 2012, even as operating expenses gained five per cent from RO10.4mn to RO11mn.
Balasubramanian added that although there is optimism surrounding the second quarter, the bank will have to 'wait and watch' for the second half of the year as it awaits the impact the two new Islamic banks, Bank Nizwa and Al Izz Bank, will have on the banking sector.
© Muscat Daily 2012
