Established in 1973, National Bank of Oman (NBO) was the largest bank in the sultanate at the end of 1999 in terms of assets. It is also the leading local bank in terms of net profits and the third largest in terms of paid-in capital.

Its loans portfolio is the largest among local commercial banks. It has more than 50 branches throughout the country and three outside Oman, with a total of more than 800 staff. In 1991, NBO became technically insolvent when, in addition to the deteriorating quality of its loan portfolio, it was left holding a large exposure to Bank of Credit & Commerce International (BCCI), its main shareholder bank, when it collapsed.

Since then, with government support and re-capitalization, the bank has been restructured and has shown remarkable growth in assets, net worth and profits. A new board of directors and senior management team were appointed in 1992, headed by chairman Khalfan Bin Nasser al-Wohaibi and general manager Aubyn Hill.

Both are still leading the bank. The bank has
robustly expanded its business with local companies. It has a strong presence in the corporate banking market and is expanding its retail operations. NBO has also started to increase its lending abroad through its branches in Egypt and Abu Dhabi.

The Board of Directors of BankMuscat and National Bank of Oman have approved a proposal to merge NBO with BankMuscat. The Board of Directors has also resolved to put forth the merger proposal before the shareholders of the respective banks for the final approval.

The merger will be subjected to the approval of Central Bank of Oman, The Capital Market Authority, and approval and registration by the Ministry of Commerce & Industry. The effective date of the merger is expected to be 01-01-2005, subject to receiving the regulatory approvals.

In exchange for every 100 ordinary shares of NBO held on the record date of the merger transaction, shareholder will receive: In respect of the first 85 shares of NBO; the shareholders will receive 37 and 7/9 ordinary shares of BankMuscat at an exchange ratio of 2.

25:1, which shall be identical to the existing issued ordinary shares of BankMuscat, except for cash dividend payable by BankMuscat for the end of year 2004. In respect of the remaining 15 shares of NBO; BankMuscat will be issuing 15 subordinated loan bonds at an interest rate of 6.

25 per cent per annum, payable half yearly, in arrears. Each bond will carry a nominal face value of RO 2.750 payable at redemption of the maturity of 5 years and 1 month. The bonds will be listed and may be subsequently traded on the Muscat Securities Market (MSM).

Individuals	N/A
Institutions	21%
Floating	N/A
Government	N/A

	2004	2003	2002
Total Assets	718,033	816,159	919,068
Shareholder's Equity	102,459	97,237	95,812
NIAT	5,222	-262	-262
Dividends	N/A	N/A	N/A

	2004	2003	2002
Assets Growth	-12.02%	-11.20%	-3.30%
Earning Growth	0.00%	0.00%	0.00%
ROaA	0.68%	0.00%	-0.03%
ROaE	10.19%	0.00%	-0.27%
No. Of Shares	70,000,000	45,804,200	45,804,200
EPS	0.07	0.00	-0.01
EPS Growth	0.00%	0.00%	0.00%
Payout Ratio	N/A	N/A	N/A

	Trailing
PE
PB
DVPS
Div Yield
EV
EV/Equity

The information is this section is provided by SHUAA Capital PSC. The information contained in this section is not intended to be an offer, a recommendation, or a solicitation to buy or sell securities or investment products.

The information and opinions contained in this section have been compiled from, or arrived at in good faith, from sources believed to be reliable but no guarantee or warranty is made by SHUAA Capital or AME Info as to the accuracy or completeness of the information contained herein.

All opinions expressed herein are subject to change without notice.

Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC.

© SHUAA Capital PSC. All rights reserved.