National Bank of Oman ends deal with CBQ
Doha, January 25, 2011
National Bank of Oman (NBO), the Gulf state's second-largest lender by assets, said Commercial Bank of Qatar (CBQ) will not extend an agreement to provide the lender with management services.
NBO said the agreement, originally signed in 2005, will expire in March after CBQ advised that it will not extend it, according to a statement to the Muscat bourse on Tuesday.
The Qatari lender's decision not to extend the contract is because NBO's management and processes had 'substantially strengthened' in the last six years, NBO said.
CBQ, which holds a 34.9 per cent stake in the Omani lender will continue to have its representatives on NBO's board of directors, the statement said.
CBQ is Qatar's second-largest bank by market value. On Sunday the lender said its fourth-quarter net profit rose 66 per cent but missed analysts forecasts.
Shares of NBO were up 0.3 percent at 0640 GMT on the Muscat bourse Tuesday, while CBQ shares had yet to open.-Reuters