News Column

National Bank of Oman reports H1 2014 results – net profit up 22 per cent YoY

July 16, 2014

National Bank of Oman (NBO) has announced its unaudited results for the six months ended 30 June 2014.

The Bank's net profit after tax for the six months ended 30 June 2014 was OMR 23.0 million compared with OMR 18.8 million for the same period in 2013.

National Bank of Oman (NBO) reported a net profit of OMR 12.7 million in 2Q 2014, up 25 per cent YoY and 23 per cent QoQ driven by higher operating income and lower net provisioning charges.

Total operating income came in line with our forecast (one per cent lower). Operating income came in at OMR 27.8 million in 2Q 2014 (plus six per cent YoY and QoQ). NIM pressure continued in 2Q 2014, possibly due to ongoing decline in asset yields. Net interest income came in lower than our expectation, reaching OMR 19.4 million, (plus three per cent YoY and plus two per cent QoQ); however, this was offset by stronger-than-expected non-interest income (plus 14 per cent YoY and plus 17 per cent QoQ).

Loans soared in 2Q 2014. Loans were up six per cent QoQ, ahead of our expectation for the full year. Deposits decreased slightly (1.5 per cent) following a 30 per cent surge in 1Q 2014. The loans-to- deposits ratio increased to 80 per cent as of June 2014 (versus 74 per cent in March 2014.

NBK Capital MENA commented, "Operating income in line with our forecast but loan growth was much higher. Net provisioning in 2Q2014 appears to have been lower than our view for FY2014. We maintain our "Hold" recommendation on NBO, with a fair value per share of OMR 0.310."

Performance – Jun 2014 Vs Jun 2013






All amounts in OMR millions




Variance  per cent





Total Assets



27 per cent

Loans,   advances and financing activities for customers (net)



7 per cent

Customers'   deposits and unrestricted investment accounts



34 per cent

Shareholders'   Equity



10 per cent

Net Interest   Income and Income from Islamic Financing



6 per cent

Operating   Income



7 per cent

Operating   Expense



9 per cent

Operating   Profit



6 per cent

Net Profit   after Tax



22 per cent





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Source: CPI Financial

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