BankDhofar’s Viability Rating reflects its strong franchise, healthy profitability and adequate liquidity. It also reflects its high concentration on both sides of the balance sheet and over reliance on wholesale customer deposits.
In H12011, BankDhofar had a one-off expense of RO 26.1m due to a ruling on a legal dispute favouring Oman International Bank. As a result, the bank reported a net loss of RO 4.6m in H111. The legal dispute is still ongoing and the final ruling is still uncertain. Excluding this one-off expense, operating income remained stable y-o-y. Fitch expects BankDhofar’s revenue and loan growth to increase moderately in the short-term underpinned by government spending.