Profit falls as staffing costs rise at Oman’s Sohar bank

Sohar International Bank, Oman’s second-biggest bank by assets, reported a decline in first-quarter profit on lower net interest income and higher staffing costs.

The bank registered a net profit of OR21.5 million ($56 million) in the three months to March 31, a decline of 15 percent over the same period last year. 

“Compared to the same period last year, total operating income decreased by 8 percent to OR55 million, mainly due to a decrease in net interest income,” the bank said in a statement to the Omani stock exchange.

The bank’s financial statement also showed that “total staff expenses” rose by 13 percent to almost OR17 million.

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Sohar is in the process of taking over smaller rival Ahli Bank.

By contrast, Ahli Bank, which accepted the takeover offer last month, reported an 11 percent increase in net profit to almost OR10 million, buoyed by its Islamic banking operations.