1st Quarter Preliminary Results

16 Apr 2009 12:07

For immediate release

BankMuscat announces preliminary results of Q109

Net profit at RO. 48.4 million, an increase of 82%

Muscat, April 16, 2009: BankMuscat (SAOG), the nation's leading financial services institution, announced the preliminary results for the period ended March 31, 2009. The preliminary result was approved by the Board of Directors on April 15, 2009.

The Bank achieved a net profit of RO. 48.4 million for the three months ended March 31, 2009 as against a net profit of RO. 26.5 million reported during the same period in 2008. The net profit for the first quarter 2009 includes RO. 35.3 million of post-tax gain on sale of HDFC Bank investment. The Bank had sold 81% of its 2.67% stake in HDFC Bank, India in March 2009 which resulted in the post-tax gain of RO 35.3 million. The Bank has also accounted for RO. 7.5 million of impairment losses on its Available-for-Sale investment portfolio in the first quarter. 

The key highlights of the first quarter results are as follows:

Net interest income increased by 7% to RO 39.6 million during the three months period ended March 31, 2009 from RO 37.0 million reported during the corresponding period in 2008.

Non interest income excluding the gain on HDFC Bank and realized losses on Available-for-Sale investment lower by 16% as compared to the same period in 2008.

The Bank was able to contain the operating expenses in 2009 with various measures to reduce variable cost. Operating expenses for the first quarter 2009 at RO. 21.3 million remained around the same level as pervious year.

The bank has accounted for RO 7.5 million towards realised and unrealised losses on the AFS investment portfolio and believes it has substantially de-risked its investment portfolio and therefore does not expect any major write-downs on the AFS investment portfolio during the remaining course of 2009.

Impairment for credit losses for the first quarter 2009 was RO. 11.2 million as against RO. 6.5 million, an increase of RO. 4.7 million.

Net loans and advances increased by 27% to RO. 3,777 million as against RO. 2,978 million as at March 31, 2008.

Customer deposits including CDs increased by 21% to RO. 3225 million as against RO 2,670 million as at March 31, 2008.

The Bank would release the final results along with complete set of financial statements for the three months period ended March 31, 2009 after the necessary approval by the Board of Directors during the last week of April 2009.

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