On Monday, July 30, Oman International Bank (OIB) posted a 37 percent drop in net profits for the first six months of the current year, a figure amounting to $12.5 million, according to AFP news agency.
Total assets of the bank fell 12 percent to reach $61.3 million, in comparison to $69.6 million in the first half of the year 2000.
The sharp drop in profits is attributed to the period’s decreased activity in non-oil related fields, which lead to low demands for quality loans from corporate firms. Consequently, competition between financial institutions with regards to lending rates rose, thus minimizing the bank’s lending and borrowing spead.
Oman International Bank, founded in 1984, became the first 100 percent Omani owned commercial bank in the country. It has the largest network of branches in Oman with 82 branches within the country, and 4 branches overseas in India and Pakistan— (MENA Report)
© 2001 Mena Report (www.menareport.com)
