Last checked at 14 Jul 2010 07:55
For immediate release
BankMuscat posts RO 47 million H1 net profit
MUSCAT, 14 July 2010 - BankMuscat (SAOG), the leading financial services provider in the Sultanate, announced a net profit of RO 47 million for the six months ended 30 June 2010 compared to RO 60.4 million reported during the same period in 2009.
The net profit for H1'09 included RO 53.2 million of post-tax gain on sale of HDFC Bank investment, RO 9.4 million losses on available-for-sale investment portfolio and RO 25.4 million of credit losses towards Saudi branch exposures. Excluding these one-off items, the adjusted net profit for H1'09 was RO 41.2 million. Thus, on a like to like comparison, the net profit for H1'10 showed an increase of 14 per cent over H1'09.
The key highlights of H1'10 results are as follows:
1) Net interest income increased by 6 per cent to RO 88.1 million during the six months period ended 30 June 2010 from RO 83.3 million reported during the corresponding period in 2009.
2) Non-interest income was higher by 8 per cent compared to H1'09, excluding the gain on HDFC Bank investment and realised losses on Available-for-Sale investment.
3) Operating expenses for H1'10 at RO 49.4 million increased by 16.5 per cent as compared to the same period in 2009. The increase in operating expense is attributable to the long-term vision and strategy to develop the banking infrastructure to provide better service and maintain the leadership position.
4) Impairment for credit losses for the six-month period in 2010 was RO 20.7 million as against RO 51.5 million in H1'09.
5) Share of loss from associates was RO 3.5 million in H1'10 as against RO 4.7 million in H1'09. Share of loss of RO 3.5 million was mainly due to BMI Bank net loss for the quarter due to higher credit losses which included both specific and collective provisions.
6) Gross loans and advances increased marginally by 2 per cent to RO 4,058 million as against RO 3,988 million as at June 30, 2009.
7) Customer deposits, including CDs, increased by 10.8 per cent to RO 3,563 million as against RO 3,214 million as at June 30, 2009.
Amounts in RO millions
| Key figures | For the six months ended 30 Jun 10 | For the six months ended 30 Jun 09 |
| Net interest income | 88.1 | 83.4 |
| Other operating income | 33.8 | 84.8 (incl. HDFC bank investment pre-tax gain of RO 60.5 M) |
| Operating expenses | 49.4 | 42.4 |
| Operating profit | 72.6 | 125.7 (incl. HDFC bank investment pre-tax gain of RO 60.5 M) |
| Net profit | 47 | 60.4 |
The results are subject to the approval of Board of Directors. The Bank will release the final results along with complete set of financial statements for the six-month period ended 30 June 2010 after the necessary approval by the Board of Directors in the last week of July 2010.
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