Another Middle Eastern bank has reported brisk letter of credit (L/C) business for the first nine months of this year.

Oman International Bank (OIB) becomes the latest in a string of banks from the region that over the last twelve months have reported strong L/C performance.

Business doubles

The Omani bank says L/Cs and guarantees showed strong growth of 97.6 per cent from 95.56 million Omani rials (RO95.56 million) for the nine-month period ended 30 September 2006 to RO188.81 million in the first nine months of this year.

Nearly doubling the amount of L/C and guarantee business written helped compensate for poorer performance elsewhere at OIB, where net profits more or less stood still at RO19.01 million for the nine-month period ended 30 September 2007 as against RO19.04 million recorded for same period in the previous year.

L/Cs buoyant

Several Gulf banks have recently reported buoyant L/C business, including Commercial Bank of Dubai, which earlier this year reported that L/C and guarantee business in its last financial year was up 41 per cent on the previous year.

Other banks reporting brisk L/C business over the last year include Bahrain-based Gulf International Bank and National Bank of Oman.

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