National Bank of Oman, the sultanate's third-largest lender by assets, posted a 10-per cent rise in first-quarter net profit, according to a bourse statement on Thursday.

The lender made a net profit of RO13.9 million ($36.1 million) in the three months to Mar. 31, up from RO12.6 million in the same period last year.

Two analysts polled by Reuters forecast the firm would make a quarterly net profit of RO15.7 million and RO13.6 million, respectively.

The bank's earnings were aided by a 10 per cent increase in net interest income to RO24.7 million. This helped to offset an 8 per cent decline in other forms of income, which fell to RO8.4 million.

Loans and advances stood at RO2.63 billion as of Mar. 31, 10 per cent higher year on year, with customer deposits falling 2 per cent over the same period to RO2.39 billion.

The bank had recorded a significant outflow of deposits during 2015, which analysts contributed to the impact of falling oil prices. – Reuters