DUBAI, July 13 Bank Dhofar, currently
in talks to merge with smaller rival Bank Sohar, met
analysts' expectations as it posted a 23 percent rise in
second-quarter net profit on Sunday.
Oman's second-largest bank by market value made a profit of
10.28 million rials ($26.7 million) in the three-month period to
June 30 compared to 8.36 million rials in the same timeframe
last year, according to Reuters calculations.
An average of three analysts polled by Reuters had estimated
a quarterly profit of 10.11 million rials.
Bank Dhofar didn't provide a quarterly breakdown so Reuters
calculated based on previous financial statements.
Net profit for the first six months of 2013 was 20.5 million
rials, well down on the 40.8 million rials recorded for the
corresponding period of last year, a statement to the Omani
bourse said, as the bank didn't repeat a one-off gain booked in
2013 from a court case victory.
Net loans and advances grew 20.8 percent year-on-year to
2.18 billion rials, with deposits also up over the same
timeframe, rising 26.1 percent to 2.19 billion rials.
It is a year since Bank Dhofar said it had approached Bank
Sohar with a view to merging the two entities and creating
Oman's second-largest bank.
Last month, Bank Dhofar proposed a preliminary share swap
ratio to Bank Sohar for the tie-up, although completing a due
diligence exercise and obtaining necessary approvals still
needed to happen.
The new entity would have total assets worth 4.78 billion
rials, based on first-quarter financial statements.
($1 = 0.3850 Omani Rials)
(Reporting by Olzhas Auyezov; Editing by David French)