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Dear Shareholders On behalf of the Board of Directors of the

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  • pg 1
									                                                                               Dear Shareholders:

     On behalf of the Board of Directors of the National Bank of Oman (NBO), I am pleased to
                          report the financial results for the first quarter ended March 31 2002.

The net interest margin of the bank has grown by 33 per cent over the corresponding period last
      year. The growth in total income, at 28 per cent over the same period in 2001, indicates a
  healthy expansion in our business. Our operating profit for the period under review is RO7.5
                                         million, 41 per cent more than the first quarter of 2001.

                                       Our first quarter earnings per share (EPS) was 262 baizas.

   Our cost to income ratio at 38.7 per cent has improved significantly over the 41.5 per cent in
                                                      2000 and 40.5 per cent recorded for 2001.

     Total savings grew by 32.79 per cent, from RO80.86 million in the first quarter of 2001 to
       RO107.37 million in the same period this year. Our popular Savings Excitement product
 continues to record excellent growth. Savings Excitement deposits grew from RO35.4 million
   in the first quarter of 2001 to RO59.64 million in the same period this year, a 68.54 per cent
                                                                                        increase.

                                                                                         Provisions
We are in the business of lending money, and as long as we are in that business, we will always
have some clients who will face difficulties in fulfilling their payment commitments, especially
  in a slow economy and in a country like Egypt which has been facing a severe and continuing
 devaluation of its currency. We continue to assess our loan portfolio and take provisions based
                                                         on the evidence of our clients' behaviour.

   With this in mind, and as I had committed in our annual report of 2000, we are making every
  effort to book provisions on a quarterly basis that will reflect the risks and asset quality as we
   see them at the given time. Obviously, this is not an exact science, and each quarter we make
every effort to exercise the best judgement possible in order to achieve as timely a disclosure as
  is possible when running a changing and as dynamic a business as banking in three countries.
 Accordingly, we have assessed the provision for the first quarter of 2002 to be RO3.7 million,
     which is 118 per cent more than the provision taken for the corresponding period last year.
                                                                                            Results
In spite of this high provision figure, we have made a net profit after tax (NPAT) of RO2.997
million compared to RO2.811 million in the first quarter of 2001, recording a growth of seven
per cent. The ability of your bank to produce operating profit is evident from the fact that
although we have booked substantially more provisions in the first quarter of this year
compared to that of 2001, we have also recorded a better net profit this first quarter as against
last year.


 Our operations in Oman and Abu Dhabi continue to provide us with strong revenues. Revenue
growth in these two countries, coupled with success with our ongoing efforts to hold our cost in
       check, has helped to bring about the positive growth in our first quarter results for 2002.

                                                                                            Egypt
  The devaluation of the Egyptian pound continues to have a negative impact on our operations
        in Egypt. We are taking steps to organise our clients with US dollar loans to repay these
 outstandings. This move has put downward pressure on our revenues in Egypt but will relieve
  the foreign exchange risk that our clients currently carry. The devaluation of the currency is a
   clear measure of uncertainty. Although the bank's books are squared, the devaluation and the
     continuing uncertainty increase the credit risk of our clients who are largely importers. The
 devaluation obviously has a broader effect on the economy and that negative impact continues
                                              to hurt our clients Ð especially the corporate ones.

    Given the policy decision that we took after the report from McKinsey & Company in 2000,
  and the subsequent devaluation of the Egyptian pound, we expect the transition to convert our
 loans and advances from primarily corporate outstandings to a broader based retail business to
 take a period of about three years. In the meantime, because of the increase in non-performing
   assets due to the devaluation of the Egyptian pound and the general economic conditions, we
           will continue to face substantial downward pressure on revenues and profits in Egypt.


                                                Regional cross-border restructuring arrangement
          The restructuring arrangement put in place last year with a cross-border exposure in a
 neighbouring GCC country has been working satisfactorily. Some guarantor's (founder) assets
   have been sold and we have received more payments on the tranche of the rescheduled debt
   with the longest tenor. The interest charges have been paid on time, and the buoyancy of the
   company's cash flow has meant that the customer has not needed to make any draw down of
 the new money facility after an initial small withdrawal. All the scheduled payments for 2001
                                and the first quarter of 2002 have been received from the client.
                                                                       Debt collection & recovery
  Given the high level of provisions that we have had to take for 2001 and our promise to make
 every effort to recover as much as possible of our shareholder's money that is currently tied up
        in these provisions, collection and recovery of difficult outstandings has assumed a very
     heightened significance for our institution. While we have always had a competent team to
     handle this function, additional measures have been taken to achieve greater success in this
      area. The senior management team has worked together to formulate a detailed collection
 strategy and action plan on an account by account basis. Clear responsibility and authority has
been assigned. Members in the senior management team and senior account officers have been
      given individual responsibility to assist in recovery from delinquent accounts. Specialised
people from security agencies are being recruited to join a focused and effective recovery team
   that will be rewarded with performance-based incentives. This sharp focus on collection and
recovery we expect to begin to bear results as the team starts to tackle the challenging targets it
                                                                                   has been given.

                                                              Moody's Financial Analyst Module
 In the first quarter of 2002, we have started to use Moody's Financial Analyst module to assist
      in credit assessment. This will add further stringency to the process and is in addition to a
number of other steps that we have taken to strengthen credit control within the institution. The
 enhancements in credit control are working well and we expect will have a positive bearing on
                             our provisions and financial results as we progress through the year.

                                                                     Corporate Services Section
A new Corporate Services Section opened on January 5 2002 in the NBO Head Office building
    to enhance the service we give to our corporate customers. At this new section, a dedicated
       Relationship Manager gives personalised attention to corporate clients, enabling NBO to
   respond quickly to customer queries, fully understand their needs, and tailor products to suit
     their requirements. The section also helps ensure better monitoring and follow up on every
                                                                              corporate account.
                                                                           NBO NetB@NK
  NBO has continued to lead in the area of information technology (IT) and innovation. NBO
NetB@NK was launched on February 21 2002, making NBO the first bank to provide Internet
   banking services in Oman. This product was developed in-house by NBO's own team of IT
       professionals. The response to this new banking medium has been overwhelming, and
                  customers from across Oman have been signing up to use NBO NetB@NK.

We extend our sincere appreciation to His Majesty Sultan Qaboos bin Said for his wisdom and
       resourceful leadership. We are grateful for the free enterprise economy in which we do
business and the guidance and assistance of the various regulatory bodies and the government
                                                                      of the Sultanate of Oman.




                                                    KHALFAN BIN NASSER AL WOHAIBI
                                                                        CHAIRMAN
NATIO NAL BANK OF OMAN                             Page 5
Summary of results
Period ended 31 March 2002

                                   3 months    3 months
                                     ended       ended
                  Particulars       31/03/02    31/03/01

                                   RO '000     RO '000


Loans and advances net of
provisions and reserved interest     726,403     644,307

Deposits                             576,684     446,812
Other assets                         220,112     189,130
Net interest income                    9,671       7,247
Net profit before tax                  3,732       3,677
Earnings per share                     0.262       0.245
Capital adequacy ratio                12.47%      16.43%
NATIO NAL BANK O F OMAN                                          Page 6
Profit and loss account
For the three months ended 31 March 2002

                                               3 months      3 months
                                       Notes     ended         ended
                                                31/03/02      31/03/01

                                               RO '000       RO '000

Interest income                         3         16,119        17,026
Interest expense                        4         (6,448)       (9,779)

Net interest income                                 9,671        7,247


Administration and operational costs               (4,788)       (4,272)
Other income                            5           2,652         2,379

Operating profit before provisions                  7,535        5,354

Provision for loan losses               7          (3,656)       (1,677)
Provision - investments                              (147)

Net profit before tax                               3,732        3,677
Provision for Taxation                  9            (735)        (866)

Net profit after tax                                2,997        2,811

Dividend per share                               N.A           N.A.
NATIO NAL BANK O F O MAN                                       Page 7
Balance Sheet
As at 31 March 2002

                                      Notes     31/03/02    31/03/01
                                                RO '000     RO '000

On balance sheet items

Assets
Cash                                               10.691       7.882
Treasury Bills                                     37.198      24.476
Due from banks and other
financial institutions                             70.388      66.073
Loans and advances (net)             6,7 & 13     726.403     644.307
Portfolio held for trading              12          1.664       1.720
Portfolio available for sale            12         33.496      32.182
Premises and equipment                              9.063       8.715
Other assets                            16         57.612      48.082

                                                  946.515     833.437
Liabilities
Deposits                              8 & 13      576.684     446.812
Due to banks and other
financial institutions                            217.730     212.103
Other liabilities                       16         39.304      46.358
Taxation                                            4.887       5.632
                                                  838.605     710.905
Shareholders' funds and Subordinated Loan
Share holders' funds
Share capital                                      45.805      45.805
Legal reserve                                      15.966      15.966
Other Reserves                                     34.200      44.148
Retained earnings                                     104       3.702
Profit for the current period                       2.997       2.811
                                                   99.072     112.432
Subordinated Loan                                   8.838      10.100
                                                  107.910     122.532

                                                  946.515     833.437
Off-balance sheet items

Contingent liabilities,Commitments                295.570     267.606
& Derivatives
NATIONAL BANK OF OMAN                                                                                                                                                                                                         Page 8
Statement of Changes in Equity                                                                                                                                                                                              RO ' 000
Period ended 31 March 2002
                                                                Share       Proposed issue        Share Premium    Legal       General         Non         Revaluation    Subordinated       Retained     Profit for the    Total
                                                                capital     of bonus shares          reserve       reserve     reserve     Distrubutable     reserve      loan reserve       earnings     Current period
                                                                                                                                              reserve


Balance at 31 December 2000                                        45,805                     0            9,458      15,966     16,111           15,267          2,050           1,263         12,903                       118,823
Net loss for the year                                                                                                                                                                            -7,467                        -7,467
Restatement in accordance with IAS 39                                                                                                                                                            -9,464                        -9,464
Dividends paid during the year                                                                                                                                                                   -6,871                        -6,871
Revaluations during the year                                                                                                                                                                                                            0
Transfer to Legal reserve                                                                                                                                                                                                               0
Trasnfer to General reserve                                                                                                       1,263                                          -1,263                                                 0
Transfer to Subordinated Loan reserve                                                                                                                                                                                                   0
Directors remuneration                                                                                                                                                                                                                  0
Bonus share issue                                                                                                                                                                                                                       0
Release of impairment losses on assests previously recognised
on adoption of IAS 39                                                                                                                                                                            1,054                         1,054
Transfer to Retained earnings                                                                                                     -9,949                                                         9,949                                  0
Balance as at 31 December 2001                                     45,805                     0            9,458      15,966      7,425           15,267          2,050                  0         104                        96,075
Dividend paid                                                                                                                                                                                                                           0
Transfer to Retained earnings                                                                                                                                                                                                       -
Transfer to General Reserve                                                                                                                                                                                                         -
Net profit for the period                                                                                                                                                                                           2,997      2,997
Adjustment relating to impaired assets                                                                                                                                                                                                  0
Balance as at 31st March 2002                                      45,805                     0            9,458      15,966      7,425           15,267          2,050             -              104              2,997     99,072
NATIO NAL BANK O F O MAN                                               Page 9
Statement of cash flows
As at 31 March 2002

                                                       3 months     3 months
                                                         ended        ended
                                                        31/03/02     31/03/01

                                                       RO '000      RO '000

Cash flow from operating activities

Tax paid                                                    (956)        (926)
Interest and commission received                          15,115       17,728
Interest paid                                             (6,448)      (9,779)
Staff and supplier payments                               (4,238)      (3,735)

                                                           3,473        3,288

Change in operating assets                                18,805      (33,254)
Change in operating liabilities                          (27,603)      16,973

Net cash used in investing activities                        (32)       1,251

Net increase/(decrease) in cash and cash equivalents      (5,357)     (11,742)

Cash and cash equivalents brought forward                 29,964       10,072

Cash and cash equivalents carried forward                 24,607       (1,670)

Representing
Cash and Balances with Central bank                       18,927       20,779
Deposits and balances with other banks (net)             (33,182)     (48,645)
Treasury bills                                            37,198       24,476
Govt Devt Bonds - OTC                                      1,664        1,720

Total                                                     24,607       (1,670)
NATIO NAL BANK O F O MAN                                                                    Page 10
For the thre e months ended 31 March 2002

Notes


1- Legal status and principal activities

National Bank of Oman S.A.O.G ("the Bank") was established in the Sultanate of
Oman in 1973 as a joint stock company and is principally engaged in corporate and
and retail banking activities within the Sultanate of Oman with Branches in the
United Arab Emirates and Egypt. T he bank operates in Oman under a banking license
issued by the Central bank of Oman and is covered by its deposit insurance scheme.
T he registered office of the company is P O Box 751, Ruwi, Postal Code 112, Muscat,
Sultanate of Oman

2 -Basis of accounting

T he financial statements have been prepared in accordance with the prescribed format of
the Capital Market Authority and the International Accounting Standards along with the
Interpretations of the Standing Interpretations Committee of the International Accounting
Standard Committee

3- Interest income

                                                            8.31 % for the three
Interest bearing assets earned interest at an overall rate of
months ended 31 March 2002 (2001 : 8.14 %) . T his equates to an annual rate of
interest of 8.31 % per annum.

4- Interest expense

For the three months ended 31 March 2002 the average overall cost of funds was
3.28 %. (2001 : 6.14 % ).T his equates to annual cost of funds of 3.28 % per annum.

5- O ther income

Other income comprises income on investment, fees, service charges, sundry
account charges and miscellaneous income . Other income excludes amounts
released from reserved interest. For details on investment income refer to note no. 11

6- Loans and advances

Loans and advances can be analysed as follows :
                                                   3 months      3 months
                                                     ended         ended
                                                    31/03/02      31/03/01
                                                    RO '000       RO '000

Corporate lending                                     439,552      366,195
Personal lending                                      271,851      211,900
Overdrafts                                            116,314      132,114

Gross Loans and advances                              827,717      710,209

Less : Provisions and reserved interest              (101,314)      (65,902)

Net Loans and advances                                726,403      644,307

Gross loans and advances include RO 22.47 M as due from related parties as
at 31 March 2002 (RO 18.7 M as at March 2001).
NATIO NAL BANK OF OMAN                                                                 Page 11
For the three months ended 31 March 2002

Notes - contd.

The maturity of these can be analysed as follows :

                                                     3 months      3 months
                                                       ended         ended
                                                      31/03/02      31/03/01

                                                     RO '000        RO '000

0-6 months                                             211,573        225,479
6-12 months                                             36,820         36,252
1-2 years                                               63,195         26,809
2-3 years                                               35,031         76,292
3-4 years                                               42,328         41,936
more than 4 years                                      438,770        303,441
                                                       827,717        710,209

The average effective interest rate on gross loans and advances as at March 2002
was 7.64 % (March 2001 : 9.21 %).

The fair value is the net present value calculated by discounting the
expected future repayments ( including interest ) by the average rates of interest.

The estimated fair value of performing loans and advances is not significantly different
from the book value of the loans. In terms of the requirements of IAS 39 all impaired
loans and advances have been provided for as indicated in Page 12.
NATIO NAL BANK OF OMAN                                                               Page 12
For the three months ended 31 March 2002

Notes - contd.

7 - Provisions and reserved interest

The movement on provisions and reserved interest for the period can be analysed as
follows :

                                                 3 months       3 months
Loan loss provision                                ended          ended
                                                  31/03/02       31/03/01

                                                  RO '000       RO '000

Balance as at January 1                               76,830       49,266
Provided during the period                             3,656        1,676
Released/recovered during the period                                  (61)
Written off during the period                            (58)        (481)
Transfers during the period                              -            -
Balance as at March 31                                80,428       50,400

Reserved interest

Balance as at January 1                               19,244       14,326
Reserved during the period                             1,681        1,271
Released/recovered during the period                                  -
Written off during the period                            (39)         (95)
Transfers during the period
Balance as at March 31                                20,886       15,502
NATIONAL BANK O F O MAN                                                      Page 13
For the three months ended 31 March 2002

Notes - contd.

In line with the IAS 39 requirements, the estimated provision has been made by
the bank as at March 2002.

Interest is reserved on all non-performing loans and advances where recovery is
considered doubtful.

At 31 March 2002, loans and advances on which interest had been reserved
amounted to RO 138.4 M (2001 : RO 84.191 M).

8- Deposits

Deposits can be analysed as follows :
                                                  3 months       3 months
                                                    ended          ended
                                                   31/03/02       31/03/01



Current and call                                       85,016       47,059
Savings                                               107,071       89,967
Time                                                  384,597      309,786
                                                      576,684      446,812

Deposits include RO 3.081 M as due to related parties as at March 31 2002.
(RO 4.5 M as at March 31, 2001).

The maturity of deposits are as follows :
                                                  3 months       3 months
                                                    ended          ended
                                                   31/03/02       31/03/01

                                                   RO '000       RO '000

0-6 months                                            445,643      316,753
6-12 months                                            79,718      106,560
1-2 years                                               6,450          859
2-3 years                                              23,173        6,464
3-4 years                                               9,613        4,938
more than 4 years                                      12,087       11,238
                                                      576,684      446,812

The average effective interest rate of deposits as at 31 March, 2002 was 3.29 % .
(31 March 2001 : 5.56 %).
NATIO NAL BANK OF O MAN                                                                                                   Page 14
For the three months ended 31 March 2002

Notes - contd.

9 - Provision for Taxation

Taxation has been provided at 12 % on the net profits of the bank in Oman, 20% on the profit of the Abu
Dhabi operations of the bank and 42 % on the profit of the Egyptian operations of the bank.

10- Asset liability mismatch

The asset liability mismatch can be analysed as follows :

                                                                  31-Mar-02                                 31-Mar-01
Maturities                                           Assets      Liabilities    Mismatch         Assets     Liabilities Mismatch
                                                    RO ' 000     RO ' 000       RO ' 000        RO ' 000    RO ' 000    RO ' 000

0-6 months                                             343,804     605,548          (261,744)     300,249     431,022   (130,773)
6-12 months                                             45,596      79,718           (34,122)      65,722     110,544    (44,822)
1-2 years                                               69,195      45,000            24,195       34,814      22,053     12,761
2-3 years                                               36,031      42,448            (6,417)      82,292      64,288     18,004
3-4 years                                               46,328       9,613            36,715       42,936       4,938     37,998
More than 4 years                                      405,561     164,188           241,373      307,424     200,592    106,832
                                                       946,515     946,515                -       833,437     833,437        -

The above analysis is based up on residual maturity dates. However the bank does not expect its deposits
retention to deteriorate significantly in the immediate future.

11. Investment Income

Investment income can be analyzed as follows:
                                                                 31-Mar-02         31-Mar-01
                                                                    RO ’000           RO ’000

Realized                                                                                  -
Unrealized                                                             -                  -
Dividends                                                              -                   8
Interest on Govt. Devt. Bonds                                          493               555
Interest on Other Bonds(CD)                                              8                61
                                                                       501               624
NATIO NAL BANK O F O MAN                                                                                          Page 15
For the three months ended 31 March 2002

Notes - contd.

12.     Investments
12.a.   Investment in associates and subsidiaries

        Associates                                                    NIL

        Subsidiaries                                                  NIL

12.b.   Investments(continued)

        Investments include all long term and short term investments of the company, excluding only those
        associates and subsidiaries listed in Note 12.a. All marketable securities are carried at their cost
                         .
        net of provisions Unquoted investments are carried at cost adjusted for any permanent diminutions in
        value.

        All the investments held as available for sale can be analysed as follows:

                                                           Market     Market               Book          Book
                                                            Value      Value              Value         Value
                                                        31-Mar-02 31-Mar-01           31-Mar-02     31-Mar-01     Cost **
                                                           RO ’000   RO’000              RO ’000       RO’000     RO ’000

        Marketable securities - Oman
        Banking                                                  17             13            17           13          55
        Investment                                             911           1,613          911         1,613      4,434
        Insurance                                              -               -            -             -          -
        Services                                             2,950           2,558        2,950         2,558      4,176
        Industrial                                             557             545          557           545      1,619
        Certificate of Deposits                              4,000                        4,000                    4,000
        Government bonds                                    20,669          24,816       20,669        24,816     20,669

                                                            29,104          29,545       29,104        29,545     34,953


        Marketable securities – Foreign
        by Sector
        Banking                                                 -              -            -             -          -
        Industrial                                              93              127          93           131        306
        Bonds                                                1,542           1,542        1,066         1,542      1,893
        Insurance                                               13               6           13             6          28
        Government bonds                                     1,430            1716        1,430         1,716      1,430
                                                             3,078           3,391        2,602         3,395      3,657

        Unquoted and other investments
        Unquoted Omani shares                                                              3146             260     3146
        Investment fund units                                                               -              -         -
        Term deposits                                                                       -              -         -
        Unquoted foreign shares                                                              611            702       702
        Other                                                                               -              -         -

                                                                                          3,757            962      3848
                                                                                         35,463        33,902     42,458

** Cost of investments held on 31 March 2002.
NATIO NAL BANK O F O MAN                                                                                             Page 16
For the three months ended 31 March 2002

Notes - contd.

12.c.   Investment held for trading represents Government bonds purchased from Over The Counter (OTC)
        Exchange for trading purposes.


12.d.   Details of Significant Investments

        Details of investments exceeding 10% of the market value of the portfolio as at 31 March 2002 is
        as follows :
                                                                                        Market           Book
                                                 Holding % to        Number of           Value           Value         Cost
                                                total cost of inv.    Securities        RO ’000      RO’000          RO’000
        MSM Q uoted securities
        Government bonds                                  48.68%       206,692          20,669        24,816         20,669

                                                                          206,692          20,669           24,816   20,669

        Foreign Listed securities                                           -              -                -         -

        Market Value as of 31 March 2002                                  206,692          20,669           24,816   20,669

        MSM Unquoted securities                                             -              -                -         -

        Foreign Unlisted securities                                         -              -                -         -

        Totals as of 31 March 2002                                        206,692          20,669           24,816   20,669

13.     Related Parties and Holders of 10% of the company’s shares

a)      In the ordinary course of business the bank conducts transactions with certain of its directors /
        shareholders and companies in which they have a significant interest. These transactions are
        conducted at an arm's length and are approved by the management.

        The nature of significant transactions involving related parties or holders of 10% or more of the
        company’s shares, or their family members, and the amounts involved during the period were as
        follows:

        Nature of transaction                            31-Mar-02 31-Mar-01
                                                            RO ’000   RO ’000

        Deposit                                              3,081          4,593
        Advances                                            22,471         18,699
        Interest expense                                        32             50
        Interest income                                        228            424
        Other Income                                             1              2
        Capital expenditure                                      6             35
        Revenue expenditure                                      2               3
NATIONAL B ANK OF OMAN                                                                                                Page 17
For the three months ended 31 March 2002


Notes - contd.


b)    Expense Items -


      Items of expense which were paid to related parties or holders of 10% or more of the
      company’ s shares, or their family members, during the period can be further analysed
      as follows:


      Interest Expense :                                                               31-Mar-02        31-Mar-01
                                             Identity                                       RO’000        RO’000
                     A M Al Barwani                                                            -                 8
                     Al Fajer Furnishing Co                                                    -                 1
                     Arv ind Aiy er                                                                1             1
                     H E Khalf an Nasser Al Wohaibi                                                3             6
                     MB Petroleum                                                                  16            15
                     NBO Capital Guaranteed Fund                                                   2             5
                     Pushottam Kanji                                                               7             8
                     R.Ramaswamy                                                                   1             1
                     Tawf iq Ahmed Sultan                                                          1             2
                     W.J. Towell                                                                   1             3
                                                                                                   32            50


c)    Loans, Advances, Receivables Due, P rovisions & Write-offs


      Loans, advances or receivables due from related parties or holders of 10% or more of
      the company’ s shares, or their family members, minus all provisions and write-offs
      which have been made on these accounts at any time, can be further analysed as
      follows:


                                             Identity                                  31-Mar-02        31-Mar-01
                                                                                            RO’000        RO’000
                     A M Al Barwani                                                            18           368
                     Abul Hamid Ahmed Mohd Al Balushi                                          18             20
                     Adel Abdullah Al Raisi                                                    28             28
                     Al Arkan Trading                                                         729           704
                     Al Balushi.Abdul Aziz                                                     12             12
                     Auby n Hill                                                               28             30
                     Col. Baqer Saleh                                                              1          30
                     Desert Palm LLC                                                          656
                     Golden Village                                                           484           483
                     H E Khalf an Nasser Al Wohaibi                                            -              22
                     Hamed Khamis Abdullah                                                         1
                     Harsh Munjal                                                                  1             2
                     Hy dro Chemical                                                                             1
                     Jawahir Ali Sultan                                                        -              98
                     Khimji Ramdas                                                           2,121            33
                     M B Petroleum                                                          12,580        12,601
                     Mohd Ali Barwani                                                              6          10
                     Murtadha Sultan                                                          180           212
                     Pankaj Khimji                                                           4,651         3,620
                     Pushottam Kanji Exchange Co.                                             107           214
                     Ramaswamy                                                                     1         -
                     Taqi Ali Sultan                                                           22             26
                     Tawf iq Ahmed Sultan                                                      23             71
                     W J Towell                                                               804           114
                                                                                            22,471        18,699


                     LESS : P rovisions                                                        -             -


                     LESS : Write Offs                                                         -             -


                     Total receivable from related parties                                  22,471        18,699
NATIO NAL BANK O F O MAN                                                                                               Page 18
For the three months ended 31 March 2002

Notes - contd.

14. Shareholders

     All those shareholders of the company who own 10% or more of the company’s shares, whether in their
     name, or through a nominee account, and the number of shares they hold are as follows:

                 a) Common Share Holders:
                                                                                  31-Mar-02      31-Mar-01
                                      Identity                                       RO’000         RO’000


                   Abna Sultan Trading Co.                                             4,427          4,550
                   Al Barwani Investment Co.                                           4,712          4,712
                   Public Authority for Social Insurance                               4,711          4,711
                   Civil Service Employees Pension Fund                                4,709          4,709

              b) Preferred Share Holders:                                                    -              -

                                                                                      18,559         18,682

15. Segment Reporting

     The revenue and result for the company’s reportable segments after adjusting for interbranch transactions
     for the period ended 31 March 2002 are as follows:

                   Identity of Segments:                           Oman          Abu Dhabi         Egypt          Totals

                   Segment Revenue                                    14,234           1,756          2,766            18,756

                   Segment Expenses                                  (10,919)         (1,413)        (3,427)           (15,759)

                   Segment Results                                     3,315             343           (661)            2,997

16. O ther Assets & Other Liabilities

     Included in Other Assets is a sum of RO 38.4 M receivable from BCCI which is guaranteed by the Government
     of the Sultanate of Oman, unconditionally, of all and any sums which are due to the bank by the Bank of
     Credit and Commerce International (BCCI). BCCI is in liquidation. Upto March 2002 the bank has received RO
     23.2 M from the liquidators which is recorded separately in Other Liabilities pending the final notification of
     settlement by the BCCI liquidators.

								
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