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					NATIONAL BANK OF OMAN (S.A.O.G.)




      QUARTERLY REPORT




        SEPTEMBER 2002
                         INDEX

                                     PAGE
                     CONTENTS
                                      No.

1.   CHAIRMAN'S REPORT                  1-3


2.   SUMMARY OF RESULTS                     4


3.   PROFIT AND LOSS ACCOUNT                5


4.   BALANCE SHEET                          6


5.   STATEMENT OF CHANGE IN EQUITY          7


6.   STATEMENT OF CASH FLOWS                8


7.   NOTES                             9-17
CHAIRMAN’S REPORT- SEPTEMBER 30 2002
                                                                                  Page 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 together with other developments for the nine
months ended September 30 2002.

As I said at the beginning of this year our strategy was to grow operating income,
increase deposits while simultaneously lowering our risk profile by downsizing our
corporate loan book overseas and managing our expenses.

Our results reflect this strategy. The net interest income of the Bank grew by 23 per
cent over the corresponding period last year. The growth in total operating income, at
18 per cent over the same period in 2001, indicates a steady increase in our revenues.
Our operating profit for the period under review is RO 23.6 million, 22 per cent
higher than for the same period in 2001, which indicates steady revenue growth in our
core lines of business.

Our cost to income ratio has improved from 40.44 per cent recorded for 2001 to 38.85
per cent for the period under review.

Deposits

In line with our strategy total deposits grew by 10 per cent, from RO 513 million in
the third quarter of 2001 to RO 565 million in the same period this year. Our popular
Savings Excitement product continues to record steady growth. Savings deposits grew
from RO 91.5 million in the third quarter of 2001 to RO 121.7 million in the same
period this year, a 33 per cent increase.

NBO continued to improve its funding mix by increasing low-cost deposits by
successfully launching the Certificate of Deposit issue. This medium term CD option
has further improved the liquidity mismatch position of the bank and reduced, as
planned, our reliance on interbank funding by RO 67 mm.

Provisions and Non-Performing Assets (NPA)

We are in the risk business and, as such, there will always be clients who face
difficulties in meeting their payment obligations, particularly in times of economic
recession. This holds true particularly in the case of Egypt where the economy
continues to suffer as a result of shortage of foreign exchange and escalating tensions
within the region.


It is our stated policy to prudently take provisions on a quarterly basis in line with any
incremental risk associated with asset quality. We review all



                                                                                  Page 2

problematic exposures at management and board level, and although there may
always be an element of subjectivity, we believe that early recognition of existing and
potential problems provide a strong level of transparency in our disclosure.
Accordingly, we have assessed the provisions for the nine months ended September
2002 at RO 21.19 million, which is 164 per cent higher than the corresponding period
last year. We continue to adopt an aggressive provisioning strategy as we believe this
is the most prudent way to rebuild the strength of the institution.

The NPA position has increased by 20 % as compared to the previous quarter mainly
on account of additional names which were classified during this quarter in the three
countries where we operate.

By the end of the third quarter of 2002 our provision coverage level is 74 % as
compared to 71.1 % at the end of 2001.

Results

Our operating profit for the nine months was RO 23.6 million. However as a result of
the the high provision figure we have made a net profit after tax (NPAT) of RO 1.1
million compared to RO 8 million in the nine months of 2001 a decrease of 86 per
cent.

Our operations in Oman and Abu Dhabi continue to provide us with strong operating
revenues. Revenue growth in these two countries, coupled with our on going efforts to
manage costs, has helped to maintain sound operating results for the third quarter of
2002.

Egypt

 Egypt continues to be adversely affected by the economic downturn including a
shortage in foreign exchange. As communicated in the past we have continued our
efforts to lower our risk profile in this country by reducing our corporate loan
portfolio. Restructuring of corporate facilities is being pursued vigorously and legal
action is being taken wherever necessary to try and recover outstanding amounts. In
spite of the prevailing situation in the country we expect to continue to do business
selectively with existing creditworthy corporate customers. The exit portfolio will be
progressively downsized and our retail and corporate deposit gathering activities
accelerated.

Out of the Bank’s total advances, only 13 % is in Egypt which is relatively small in
terms of concentration. Of the corporate portfolio in Egypt which totals RO 93
million, approximately RO 43 mm has been classified with




Page 3

various levels of provisioning as stipulated by the Central Banks of Oman and Egypt.
We have now identified exposure of RO 20 mm for exit and plans are being put in
place, account-by-account, to exit these accounts. We presently hold RO 24 mm in
provisions against the classified portfolio of RO 43 mm.

To minimize the provisioning impact collection efforts have been intensified in Egypt
and UAE, the work out function has been strengthened, and the legal effort on
remedial names accelerated.
NBO’s Business Initiatives

We have concluded several new initiatives during the quarter namely:

Al Khoud Branch
During the quarter we have opened a new branch in Al Khoud to provide convenient
banking services to our customers in that area.

Long Term Certificate product in Egypt
As part of our efforts to improve our funding in Egypt we have introduced a long term
certificate product. We expect this product to help us build a long term stable funding
base.

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 support of the various regulatory bodies
and the government of the Sultanate of Oman.




KHALFAN BIN NASSER AL WOHAIBI
CHAIRMAN
NATIO NAL B ANK OF O MAN                            Page 4
Su mmary of resul ts
Peri od ended 30 September 2002

                                   9 mon th s   9 mon th s
                                     ende d       ende d
                  Parti cul ars    30/09/0 2    30/09/0 1

                                   RO '00 0     RO '00 0


Loans and advances net of
provisions and reserved interest      701,344      721,030

Depo sit s                            565,832      513,829
Ot her assets                         201,892      208,841
Net int erest income                   30,189       24,561
Net pro fit before t ax                 1,921       10,558
Earnings per share                      0.033        0.240
Capit al adequacy rat io               12.61%       13.76%
NATIO NAL B ANK OF O MAN                                                  Page 5
Profi t and l oss accoun t
For th e n in e months e nde d 30 Se pte mbe r 2 002

                                                    9 mon th s        9 mon th s
                                          No te s     e nde d           e nde d
                                                    30/09/0 2         30/09/0 1

                                                       RO '00 0       RO '00 0

Int erest income                            3              48,373         52,414
Int erest expense                           4             (18,1 84)      (27,8 53)

Net int erest income                                      30,189          24,561


Administ rat ion and operat ional costs                   (14,9 73)      (13,1 62)
Ot her income                               5               8,345          7,987

Op erat ing profit before provisions                      23,561          19,386

Provision fo r loan losses                  7             (21,1 99)       (8,01 7)
Provision - invest ments                                    (441)           (811)

Net pro fit before t ax                                    1,921          10,558
Provision fo r Taxat io n                   9               (797)         (2,32 3)

Net pro fit after tax                                      1,124           8,235

Dividen d per share                                      N.A            N.A.
NATIO NAL BANK OF O MAN                                                  Page 6
Ba lan ce Sh eet
As at 30 September 200 2

                                              No tes     30/09/0 2    30/09/0 1
                                                         RO '000      RO '000

On balance sheet it ems

Assets
Cash                                                         12,130        9,640
Treasury Bills                                               26,154       33,664
Due from bank s and ot her
financial inst it ut ion s                                   66,144       72,543
Loans and advances (net )                    6,7 & 1 3      701,344      721,030
Port folio held for t rading                    12            1,697        1,720
Port folio available for sale                   12           32,820       31,169
Premises and equipment                                        9,053        8,897
Ot her assets                                   16           53,894       51,208

                                                           903,236      929,871
Li abi l iti es
Depo sit s                                   8 & 13         565,832      513,829
Due t o banks and ot her
financial inst it ut ion s                                  184,294      251,203
Ot her liabilit ies                             16           42,155       38,442
Taxat ion                                                     4,918        6,046
                                                            797,199      809,520
Sh arehol ders' funds and Subordi na ted Loan
Sh are ho lders' fun ds
Share capital                                                45,805       45,805
Legal reserve                                                15,966       15,966
Ot her Reserves                                              34,200       41,048
Ret ained earnings                                              104          845
Profit for t he current period                                1,124        7,849
                                                             97,199      111,513
Su bordin ated Loan                                           8,838        8,838
                                                            106,037      120,351

                                                           903,236      929,871
Off-balance sheet it ems

C ontin gent l i abi l iti es,C ommitments                 279,801      316,119
& Derivati ves
NATIONAL B ANK OF O MAN                                                      Page 8
Statement of cash fl ows
As at 30 S eptember 2002

                                                        9 mon th s      9 mon th s
                                                          ende d          ende d
                                                        30/09/02        30/09/01

                                                        RO '000         RO '000

C ash fl ow from operati ng acti vi ti es

Tax paid                                                       (985)         (1,97 0)
Int erest and commission received                            35,519          52,384
Int erest paid                                              (18,1 84)       (27,8 53)
St aff and supplier payments                                (13,2 27)       (11,5 10)

                                                              3,123          11,051

Change in operating assets                                   21,259         (90,3 96)
Change in operating liabilit ies                            (50,3 70)        31,486

Net cash used in investing act ivit ies                        (836)            952

Part ial Repayment of Subordinated Loan                         -            (1,26 3)

Dividend Paid                                                   -            (6,87 1)

Net increase/(decrease) in cash and cash equivalent s       (26,8 24)       (55,0 41)

Cash and cash equivalent s bro ught forward                  29,964          10,072

Cash and cash equivalent s carried forward                    3,140         (44,9 69)

Re prese ntin g
Cash and Balances with Cent ral bank                         26,996          28,322
Depo sits and balan ces wit h ot her banks (net)            (51,7 07)      (108,675)
Treasury bills                                               26,154          33,664
Govt Devt Bonds - OTC                                         1,697           1,720

To tal                                                        3,140         (44,9 69)
NATIONAL BANK OF OMAN                                                                                                                                                             Page 7
Statement of Changes in Equity                                                                                                                                                  RO ' 000
Period ended 30 September 2002
                                                         Share          Share        Legal      General       Non       Revaluatio Subordinate     Retained    Profit for the   Total
                                                                      Premium                                               n            d
                                                         capital       reserve       reserve    reserve    Distrubutabl  reserve   loan reserve    earnings      Current
                                                                                                                 e                                               period
                                                                                                              reserve


Balance as at 31 December 2000                             45,805            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
Trasnfer to General reserve                                                                        1,263                                  -1,263                                        0
Release of impairment losses on assests previously recognised on adoption of IAS39                                                                     1,054                       1,054

Transfer to Retained earnings                                                                     -9,949                                               9,949                            0
Balance as at 31 December 2001 (audited)                   45,805            9,458     15,966      7,425         15,267      2,050             -        104                 -     96,075
Dividend paid                                                                                                                                                                           0
Transfer to Retained earnings                                                                                                                                                           -
Transfer to General Reserve                                                                                                                                                             -
Net profit for the period                                                                                                                                               1,124      1,124
Adjustment relating to impaired assets                                                                                                                                                  0
Balance as at 30 september 2002                            45,805            9,458     15,966      7,425         15,267      2,050             -        104             1,124     97,199
NATIO NAL B ANK OF O MAN                                                                           Page 9
For th e ni ne m onths e nde d 30 Se pte m be r 2002

No te s



1- Le gal status and prin cipa l activi tie s

Nat ional Bank of Oman S.A.O.G ("t he Bank ") was est ablished in th e Sult anat e of
Oman in 1973 as a join t st ock comp an y and is principally engaged in corporate
and ret ail banking act iv it ies wit hin t he Sult an at e of Oman wit h Branches in the
Un it ed Arab Emirates and Egypt . T he bank operat es in Oman under a banking licen se
issued by th e Cent ral bank of Oman and is covered by its deposit insurance scheme.
Th e registered o ffice of t he company is P O Box 75 1, Ruwi, Post al Code 112, Muscat ,
Sult anat e of Oman

2 -B asi s of accou ntin g

Th e financial st at ement s have been prepared in accordance with t he prescribed format of
t he Cap it al Market Aut horit y and th e Internat ion al Account ing Standards alon g wit h t he
Int erpret at ions of the Standing Int erpret at ions Committ ee o f t he Int ernat io nal Account ing
St andard Committ ee

3- Inte re st i ncom e

Int erest bearing asset s earned int erest at an overall rat e of 8.44 % fo r t he quart er ended 30 Sept ember
2002 (2001 : 9.20 %) . This equat es t o an annual rat e of int erest of8.39 % per annum.


4- Inte re st e xpe nse

For t he quart er ended 30 Sept ember 2002 t he average overall cost o f funds was
3.22 %. (2001 : 4.80 % ).Th is equat es t o annual cost of funds of 3.17 % per ann um.

5- O the r in come

Ot her income comprises in co me on investment , fees, serv ice charges, sundry
account charges and miscellaneous income . Ot her income excludes amount s
released fro m reserved interest. For det ails on invest ment income refer to not e no. 11

6- Loans a nd a dvance s

Loans and advances can be analysed as follows :
                                                      9 mon th s     9 mon th s
                                                        e nde d        e nde d
                                                      30/09/0 2      30/09/0 1
                                                       RO '00 0      RO '00 0

Corporat e len ding                                       435,635        408,991
Personal lending                                          277,094        247,189
Ov erdraft s                                              110,140        136,533

Gross Loans and advances                                  822,869        792,713

Less : P rovisions and reserved int erest                (121,525)       (71,6 83)

Net Loans and adv an ces                                 701,344       721,030

Gross loans and advances include RO 24.34M as due from relat ed part ies as
at 30 September 2002 (RO 21.7 M as at Sept ember 2001).
NATIONAL B ANK OF O MAN                                                                     Page 10
For th e ni ne months ended 30 September 2002

No tes - contd.

Th e mat urit y of t hese can be analysed as follows :

                                                     9 mon th s     9 mon th s
                                                       ende d         ende d
                                                     30/09/02       30/09/01

                                                      RO '000        RO '000

0-6 mont hs                                               220,522      219,671
6-12 mont hs                                               23,921       38,674
1-2 y ears                                                 39,987       45,524
2-3 y ears                                                 37,916       47,756
3-4 y ears                                                 64,849       46,406
more t han 4 years                                        435,674      322,999
                                                         822,869      721,030

Th e average effect ive int erest rat e o n gross loans and advances as at Sept ember 2002
was 7.59 % (Sept ember 2001 : 8.91 %).

Th e fair value is t he net present value calculated by discount ing t he
expect ed future repayments ( in cluding int erest ) by the average rat es of int erest .

Th e estimat ed fair value of performing loans and advances is not significant ly different
fro m the book value of t he loans. In t erms of t he requirement s o f IAS 39 all impaired
loans and advances have been pro vided for as indicated in Page 12.
NATIONAL B ANK OF O MAN                                                             Page 11
For th e ni ne months ended 30 September 2002

No tes - contd.

7 - Provi sion s an d reserved in terest

Th e movement on provisions and reserved int erest for t he p eriod can be analy sed as
follows :

                                                  9 mon th s     9 mon th s
Loan l oss provi si on                              ende d         ende d
                                                  30/09/02       30/09/01

                                                  RO '000        RO '000

Balance as at January 1                               76,830         49,266
Provided during the period                            21,199          8,017
Released/recovered during t he period                                  (183)
Writ t en off during t he period                         (923)       (3,53 2)
Transfers during t he period                              -             -

Balance as at Sept ember 30                          97,106         53,568

Re se rved i nterest

Balance as at January 1                               19,244         14,326
Reserved during the period                             5,571          4,354
Released/recovered during t he period                                   -
Writ t en off during t he period                         (396)         (565)
Transfers during t he period

Balance as at Sept ember 30                          24,419         18,115
NATIONAL B ANK OF O MAN                                                        Page 12
For th e ni ne m onths e nde d 30 Se pte m be r 2002

No te s - contd.

In lin e with t he IAS 39 requirement s, t he est imat ed provision has been made by
t he bank as at Sept ember 200 2.

Int erest is reserved on all n on-p erforming loans and adv an ces where recovery is
considered doubt ful.

At 30 Sept ember 2002, loans and advances on which int erest had been reserved
amounted to RO 163.16M (2001 : RO 106.6M).

8- De posi ts

Depo sits can be an alysed as follows :
                                                   9 mon th s     9 mon th s
                                                     e nde d        e nde d
                                                   30/09/02       30/09/01




Current and Call                                        95,827        60,707
Savin gs                                               121,757        91,543
Cert ificat e of Deposits                               30,442           -
T ime                                                  317,806       361,579
                                                      565,832       513,829

Depo sits include RO 3.378 M as due t o relat ed parties as at Sept ember 30 20 02.
(RO 2.303 M as at Sept ember 30,2001).

T h e mat urit y of deposit s are as follows :
                                                   9 mon th s     9 mon th s
                                                     e nde d        e nde d
                                                   30/09/02       30/09/01

                                                    RO '000       RO '000

0-6 mont hs                                            428,878       409,086
6-12 mont hs                                            54,725        51,170
1-2 y ears                                              26,097         1,337
2-3 y ears                                               4,379        28,610
3-4 y ears                                              50,141         2,192
more t han 4 years                                       1,612        21,434
                                                      565,832       513,829

                                                         30 ept ember 2002 was 3.03 % .
T h e average effect ive int erest rat e of deposits as at S
(30 Sept ember 2001 : 4.88 %).
NATIONAL BANK OF OMAN                                                                                             Page 13
For the nine months ended 30 September 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 :

                                                   30-Sep-02                                     30-Sep-01
Maturities                            Assets      Liabilities        Mismatch        Assets      Liabilities   Mismatch
                                     RO ' 000     RO ' 000           RO ' 000       RO ' 000     RO ' 000      RO ' 000

0-6 months                              338,135       547,005           (208,870)     341,328       586,851      (245,523)
6-12 months                              27,921        63,067            (35,146)      38,674        66,783       (28,109)
1-2 years                                45,426        64,647            (19,221)      57,529         1,337        56,192
2-3 years                                41,916        23,654             18,262       50,756        86,435       (35,679)
3-4 years                                71,313        50,141             21,172       50,406         2,192        48,214
More than 4 years                       378,525       154,722            223,803      391,178       186,273       204,905

                                       903,236       903,236                -        929,871       929,871              -

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:
                                                    30-Sep-02          30-Sep-01
                                                      RO’000             RO’000

Realized                                                   26                -
Unrealized                                                -                  -
Dividends                                                 298                367
Interest on Govt. Devt. Bonds                           1,428              1,626
Interest on Other Bonds (CD)                               12                -
                                                       1,764              1,993



NATIONAL BANK OF OMAN                                                                                                          Page
For the nine months ended 30 September 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 :

                                        30-Sep-02                                           30-Sep-01
Maturities                                Assets       Liabilities       Mismatch             Assets      Liabilities       Mismatc
                                        RO ' 000       RO ' 000          RO ' 000           RO ' 000      RO ' 000          RO ' 000

0-6 months                                  338,135         547,005             (208,870)       341,328        586,851        (245,5
6-12 months                                  27,921          63,067              (35,146)        38,674         66,783         (28,1
1-2 years                                    45,426        64,647           (19,221)       57,529            1,337     56,1
2-3 years                                    41,916        23,654             18,262       50,756           86,435   (35,6
3-4 years                                    71,313        50,141             21,172       50,406            2,192     48,2
More than 4 years                           378,525       154,722           223,803       391,178          186,273   204,9
                                            903,236       903,236                  -      929,871          929,871


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:
                                                        30-Sep-02         30-Sep-01
                                                          RO’000            RO’000

Realized                                                       26                  -
Unrealized                                                      -                  -
Dividends                                                     298                367
Interest on Govt. Devt. Bonds                               1,428              1,626
Interest on Other Bonds (CD)                                   12                  -
                                                            1,764              1,993
NATIO NAL BANK OF O MAN                                                                                                 Page 14
For th e n in e months ended 30 September 2 002

No tes - contd.

12.     Investme nts
12.a.   Investme nt i n associates and subsi diari es

        Associ ates                                                   NIL

        Su bsidi ari es                                               NIL

12.b.              (cont inued)
        Investme nts

        Investment s in clude all lon g t erm an d short t erm invest ment s of t he company , excludin g only t hose
        associat es and subsidiaries listed in Not e 12.a. All market able securit ies are carried at t heir cost
                          .
        net of pro visio ns Unquot ed invest ment s are carried at cost adjust ed for any permanent diminut ions in
        value.

        All t he investment s held as available for sale can be analysed as follows:

                                                          Market          Mark et          Bo ok           Book
                                                            Va lu e        Value           Va lu e         Value
                                                        30-Sep-02      30-Sep-01       30-Sep-02       30-Sep-01        C ost **
                                                          RO ’000         RO’0 00        RO ’000          RO’0 00       RO ’000

        Marketabl e secu riti es - Oman
        Banking                                                16               17            16               17           55
        Investment                                          1,050             871          1,050              871        3,620
        Insurance                                             -                -             -                -            -
        Services                                              844            2,638           844            2,638        1,683
        Indust rial                                           735             514            735              514        1,587
        Government bonds                                   25,934           23,096        25,934           23,096       25,934

                                                           28,579           27,136        28,579           27,136       32,879


        Marketabl e secu riti es – Forei gn
        by Sector
        Banking                                                -              -              -                -            -
        Indust rial                                             34             93             34               93          306
        Bonds                                                  151          1,542            432            1,404        1,893
        Insurance                                               13             5              13                5           28
        Government bonds                                     1,697           1553          1,697            1,553        1,697
                                                             1,895          3,193          2,176            3,055        3,924

        Un quoted and oth er i nvestments
        Un quot ed Omani sh ares                                                            3136               260        3136
        Investment fund unit s                                                               -                -            -
        Term deposits                                                                        -                -            -
        Un quot ed foreign shares                                                            647               718         746
        Ot her                                                                               -                -            -

                                                                                           3,783              978         3882

                                                                                          34,538           31,169       40,685

** Cost of invest ments held on 3 0 Sept ember 2 002.
NATIO NAL BANK OF O MAN                                                                                                Page 15
For th e n in e months ended 30 September 2 002

No tes - contd.

12.c.   Investment held for t rading represents Governmen t bonds purchased from Over T he Co un ter (OTC)
        Exchange fo r t rading purposes.


12.d.   De tai l s of Si gni fi cant In vestmen ts

        Det ails of invest ment s exceeding 10% of t he mark et value of t he port folio as at 30 Sept ember 2002 is
        as follows :
                                                                                          Market            Book
                                                  Ho lding % t o       Number of            Val ue         Value       Cost
                                                t ot al co st of in v. Securit ies        RO ’000         RO’0 00    RO’0 00
        MSM Q u oted securi ties
        Government bonds                                      63.74%        262,022         25,934            24,816    25,934

                                                                            262,022         25,934            24,816    25,934


        Forei gn Li ste d securi tie s                                       -               -               -          -

        Mark et Value as of 30 Sept ember 20 02                             262,022         25,934            24,816    25,934

        MSM Unqu oted securi ties                                            -               -               -          -

        Forei gn Un li sted secu ri ti es                                    -               -               -          -


        To tals as of 30 September 2002                                     262,022         25,934            24,816   25,934

13.     Re lated Parti es and Hol ders of 1 0% of the company’s sh ares

a)      In t he ordinary course of business the bank conduct s t ransact ion s with certain of it s direct ors /
        shareho lders and companies in which t hey have a significant interest. T hese t ran sact ion s are
        conduct ed at an arm's lengt h and are approved by t he management .

        Th e nat ure of significant t ransact ions involving relat ed parties or ho lders of 10% or more of t he
        company’s shares, or t heir family members, and t he amount s invo lved during t he p eriod were as
        follows:

        Nat ure of transaction                            30-Sep-02      30-Sep-01
                                                            RO ’000        RO ’000

        Depo sit                                               3,378          2,303
        Advances                                              24,341         21,699
        Int erest expense                                         90             90
        Int erest income                                         681           600
        Ot her Income                                              9              7
        Capit al ex pendit ure                                    54           110
        Revenue expendit ure                                      23               6
NATIONAL BANK OF OMAN                                                                                          Page 16
For the nine months ended 30 September 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 :                                                        30-Sep-02        30-Sep-01
                                          Identity                                 RO’000          RO’000
                    Al Fajer Furnishing Co                                             -                   2
                    Arvind Aiyer                                                             2             4
                    Khalfan Nasser Al Wohaibi                                                7            17
                    Harshdeep Singh Munjal                                                   1             1
                    MB Petroleum                                                           48             47
                    Purushottam Kanji                                                        7             6
                    P.Kanji Exchange Co.                                                   21              0
                    Tawfiq Ahmed Sultan                                                      2             3
                    W.J. Towell                                                              2            10
                                                                                           90             90


c)    Loans, Advances, Receivables Due, Provisions & 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                              30-Sep-02        30-Sep-01
                                                                                   RO’000          RO’000
                    Abul Hamid Ahmed Mohd Al Balushi                                   -                  19
                    Al Arkan Trading                                                   658            636
                    Abdul Aziz Al Balushi                                                    8            12
                    A M Al Barwani                                                         11         -
                    Arvind Aiyer                                                             3        -
                    Desert Palm LLC                                                    -              712
                    Golden Village                                                     457            509
                    Khalfan Nasser Al Wohaibi                                          -                   1
                    Harsh Munjal                                                             8             1
                    Hydro Chemical                                                     -                   1
                    Pankaj Khimji                                                    4,631          4,607
                    Khimji Ramdas                                                    2,947          2,111
                    M B Petroleum                                                   12,207         12,548
                    Mohd Ali Barwani                                                         4            11
                    Murtadha Sultan                                                    142            149
                    Muttrah Cold Store                                                 425                38
                    Stephen Davies                                                         15         -
                    Taqi Ali Sultan                                                        19             22
                    Tawfiq Ahmed Sultan                                                107            -
                    W J Towell                                                       2,699            322
                                                                                    24,341         21,699


                    LESS : Provisions                                                  -              -


                    LESS : Write Offs                                                  -              -


                    Total receivable from related parties                           24,341         21,699
NATIONAL B ANK OF O MAN                                                                                                   Page 17
For th e ni ne months ended 30 September 2002

No tes - contd.

14. Sh arehol ders

     All t hose shareh olders of t he co mpany who own 10% or more of th e company’s sh ares, whet her in t heir
     name, or t hro ugh a n ominee account , and t he n umber of shares t hey ho ld are as follows:

              a) C ommon Sh are Hol ders:
                                                                                      30-Sep-02      30-Sep-01
                                    Identit y                                            RO’0 00        RO’0 00


                  Al Barwani In vest ment Co.                                              4,712          4,712
                  Public Aut horit y for Social Insurance                                  4,711          4,711
                  Civil Service Employees Pension Fund                                     4,709          4,709

              b) Preferred Share Hol ders:                                                      -               -

                                                                                        14,132          14,132


15. Segmen t Repo rti ng

     Th e revenue and result for the comp any ’s report able segments aft er adjust in g for interbranch t ransact ion s for t he
     period ended 30 sept ember 2002 are as follows:

                  Identi ty of S egments:                            Oman           Abu Dhabi         Egypt           Total s

                  Segment Revenue                                        43,034            5,712          7,972           56,718


                  Segment Operating Expenses                            (36,4 84)         (6,11 9)      (12,9 91)        (55,5 94)


                  Segmen t Resu lts                                       6,550            (407)         (5,01 9)           1,124


16. O ther Assets & O ther Liabi l i ti es

     Included in Ot her Assets is a sum of RO 38 .4 M receivable from BCCI which is guarant eed by t he Government
     of t he Sult anate of Oman, unconditionally, of all and an y sums which are due t o t he bank by t he Bank of
     Credit an d Commerce Int ernational (BCCI). BCCI is in liquidat ion. Upt o Jun e 2002 t he bank has received RO
     23.2 M from t he liquidat ors which is recorded separately in Ot her Liabilit ies pending th e final no tificat ion of
     sett lement by t he BCCI liquidat ors.

				
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