Oman International Bank weighed down by bad loans
The Oman International Bank (OIB) reported an 80 percent drop in net profits for the 2001 financial year 2001, which ended December 31, falling to 1.97 million Omani rials ($5.11 million) from the OR9.94 million recorded the previous year. Nonetheless, OIB’s shareholders’ annual general meeting (AGM) approved a five percent annual dividend for the financial year 2001. In FY 2000, IOB distributed a 15 percent dividend.
The bank’s provision for bad loans totaled OR15.437 million in 2001, a 75 percent rise from OR8.821 million in the previous year. The bank’s total assets declined by nearly nine percent to OR672.41, down from OR738.47 million in the previous year of 2000.
Interest income reached OR54.87 million last year, down from OR66.59 million in 2000. This was coupled by a 10 percent drop in customer deposits to from OR543.86 million in 2000 to OR489.47 million in 2001. OIB’s operating profit amounted to OR16.25 million in 2001, down from OR19.59 million in 2000.
OIB is considered the largest local bank in terms of savings deposits and share capital. Launched in 1984, OIB is the first 100-percent Omani-owned commercial bank in the Sultanate. OIB operates 82 branches in the country and four overseas branches at Mumbai and Cochi in India and Karachi and Lahore in Pakistan — (menareport.com)
© 2002 Mena Report (www.menareport.com)