Oman's Bank Dhofar posted a 5.1 per cent rise in fourth-quarter net profit, although it didn't help to arrest a large drop in full-year net income, the bank said in a statement to the Muscat bourse on Thursday.

Bank Dhofar, the Sultanate's second-largest by market capitalisation, made a net profit RO8.3 million ($21.6 million) in the fourth-quarter, according to Reuters calculations. That compared with a net profit of RO7.9 million during the same period in 2010.

Reuters calculated the fourth quarter net profit from previous financial statements.

The net profit for 2011 stood at RO14 million, down 58 per cent on 2010's figure of RO33.3 million.

The full-year profits were hit by a RO26.1 million provision the bank took in the second quarter after it lost a court case with Oman International Bank and Ali Redha Trading and Muttrah Holding over the ownership of 1,925,000 of Bank Dhofar shares.

Net loans and advances grew 19 per cent to RO1.5 billion from RO1.26 billion at the end of 2010. Deposits were also up, rising 21.6 per cent to RO1.52 billion from RO1.25 billion in 2010.

In October, Anthony Mahoney was appointed as chief executive officer of the bank.

Bank Muscat, Oman's largest lender, edged ahead of analysts' expectations when it posted a 3.1 percent rise in fourth-quarter net profit to RO30.4 million.

Meanwhile, National Bank of Oman reported on Tuesday a 25.5 per cent fourth-quarter profit gain, although this missed analysts' estimates.-Reuters