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17 Jan 2011 07:00
BankMuscat announces preliminary unaudited results for the year 2010
YTD Net profit at RO. 101.7 million
MUSCAT, 16 January 2011 - BankMuscat (SAOG), the leading financial services provider in the Sultanate, announced the preliminary unaudited results for the year 2010. The Bank expected to post net profit of RO 101.7 million for the year ended 31 December 2010 compared to RO 73.7 million reported for the year 2009, an increase of 38 per cent.
The net profit for the year ended 31 December 2009 included RO 53.2 million of post-tax gain on sale of HDFC Bank investment, RO 10 million losses on available-for-sale investment portfolio and around RO 60 million of provision for credit losses towards Saudi branch exposures. Excluding these one-off items, the adjusted net profit for the year 2009 was RO 90.5 million. Thus, on a like to like comparison, the net profit for the year ended 31 December 2010 showed an increase of 12.4 per cent over the year 2009.
The key highlights of the results for the year ended 31 December 2010 are as follows:
1) Net interest income increased by 7.4 per cent to RO 187.2 million in 2010 from RO 174.4 million reported during the year 2009.
2) Non-interest income was higher by 23 per cent compared to the year 2009, excluding the gain on HDFC Bank investment and realised losses on Available-for-Sale investment.
3) Operating expenses for the year ended 31 December 2010 was at RO 102.9 million, an increase of 25.3 per cent as compared to 2009. The increase in operating expense is attributable to the long-term vision and strategy to develop the banking infrastructure by way of technology investments, expansion of business and delivery channel network to provide better service and maintain the leadership position.
4) Impairment for credit losses for the year ended 31 December 2010 was RO 46.6 million as against RO 98.2 million in 2009.
5) Share of loss from associates was RO 12.6 million for in 2010 as against RO 10.5 million in 2009. Higher share of loss from associates was driven by net loss from BMI Bank due to higher credit losses.
6) Net loans and advances increased by 4.4 per cent to RO 4,008 million as against RO 3,838 million as at 31 December 2009.
7) Customer deposits, including CDs, increased by 14.7 per cent to RO 3,680 million as against RO 3,208 million as at 31 December 2009.
Amounts in RO millions
Key figures | For the year ended 31 December 10 | For the year ended 31 December 09 |
Net interest income | 187.2 | 174.4 |
Other operating income | 77.5 | #116.7
|
Total income | 264.7 | #291.1 |
Operating expenses | 102.9 | 82.1 |
Net profit | 101.7 | #73.7 |
# includes HDFC bank investment pre-tax gain of RO 60.5 M
The Bank shall release the audited results along with complete set of audited financial statements for the year ended December 31, 2010 after the necessary approval by the Board of Directors during the last week of January 2011. The results are subject to approval of Central Bank of Oman.
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