Bank Dhofar to conduct an open dialogue with Bank Sohar on potential merger - IFN

Bank Dhofar to conduct an open dialogue with Bank Sohar on potential merger

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OMAN: Following a merger bid which transpired in July, Bank Dhofar has announced on the Muscat Securities Market that it is currently exchanging correspondences with Bank Sohar on the potential merger. Bank Dhofar has requested for a joint meeting between the boards of both banks. The open dialogue seeks to further discuss and explore the prospects of the tie-up. Bank Sohar has reportedly responded that it will consider the proposal in order to arrive to an adequate decision in line with the interest of its shareholders and the national economy. With an estimated combined assets worth OMR4.3 billion (US$11.13 billion) and a market capitalization of approximately US$1.76 billion, the amalgamation of both entities will create the second-largest Bank in Oman, after Bank Muscat. The finalization of the deal is said to depend on the interest of Bank Sohar as well as the agreement of both banks’ shareholders and regulators. Bank Sohar reported a consolidated net profit of OMR18.11 million (US$46.91 million) for the nine months ended the 30th September, marking a 15.19% year-on-year growth. Total earnings for its Islamic banking window, Sohar Islamic, reached OMR454,000 (US$1.17 million) while total assets accrued by 3.7% to stand at OMR1.85 billion (US$4.79 billion). Bank Dhofar, registered a net profit of OMR49.06 million (US$128.48 million) for the nine months ended the 30th September, marking a year-on-year growth of 70.8%. Against the corresponding quarter in 2012 however, the bank posted a 10.9% drop in third quarter net profit to OMR8.3 million (US$21.5 million). Bank Dhofar operates an Islamic banking window called ‘Maisarah’.