Oman's Bank Sohar, currently in talks with rival lender Bank Dhofar over a possible merger, posted a 20.5 percent increase in fourth-quarter net profit on Tuesday.

Sohar, the sultanate's fifth-largest bank by market value, made 8.8 million rials ($22.9 million) in the three months to Dec. 31, compared with 7.3 million rials in the corresponding period of 2012, Reuters calculated.

The calculation was made using previous financial statements from the lender. Bank Sohar reported a 16.8 percent increase in annual profit in 2013 to 26.9 million rials, it said in a bourse filing.

In July, Bank Dhofar said it had approached Bank Sohar with a view to merging the two entities and creating Oman's second-largest bank, with the latter saying it would consider the move later that month. – Reuters