Oman International Bank, the sultanate's fourth-largest bank by market value, on Sunday said its first-quarter net profit fell 11.2 percent, hurt by higher loan loss provisions.   

The bank reported a first-quarter net profit of 5.66 million rials ($14.70 million), compared with 6.37 million rials in the first quarter of 2009.

The result fell short of analysts' average forecast of 6.02 million rials in a Reuters poll.

Provisions for loan losses in the first-quarter increased to 477,000 rials compared with 372,000 rials in the year-ago quarter.

Banks in Oman, as elsewhere in the Gulf region, in the past year have booked more provisions against bad debt, dampening profits and curtailing credit growth.   

Overall, Omani lenders are considered to be well-capitalised and expected to benefit from the sultanate's economic growth in 2010.   

The non-Opec member still relies heavily on oil revenues, which account for a large chunk of the Gulf state's gross domestic product.   

Omani officials in March said the country expects to post a budget surplus in 2010 on the back of high oil prices, while economic growth is forecast to be around 6 percent.-Reuters