BankDhofar net profit falls 21% in 6 months

In a filing to the Muscat Securities Market, the bank said its net profit for the six months period ended June 30, 2019 fell to RO19.71mn, thus registering a steep decline of nearly 21 per cent compared to the RO24.94mn profit it reported in the corresponding period a year ago.

During the period under consideration, BankDhofar’s net loans, advances and financing to customers also showed a decline of 1.88 per cent to RO3.06bn for the half year ended June 30, 2019 compared to RO3.12bn it reported a year ago.

This decline in loans, advances and financing was also accompanied by a corresponding fall in the customer deposits, which declined by 7.33 per cent to RO2.89bn as of the end of June 30, 2019 as against RO3.11bn a year ago. The lender’s operating income for the first half of the current year declined by 2.04 per cent to RO65.53mn. Its operating income for the same period in 2018 stood at RO64.22mn.

The bank’s operating expenses in the first two quarters of the current year rose by nearly 7 per cent to RO34.25mn as against RO32.02mn it reported in the same corresponding period of last year, BankDhofar said in the filing.

Earlier this month, the bank announced that its shareholders had approved the issue of tier 1 capital instrument in the form of perpetual bonds up to US$300mn.