Last checked at 17 Jul 2014 11:31
For immediate release
BankMuscat announces preliminary results for 6 months ended 30th June 2014
YTD Net Profit at RO 86.35 million
MUSCAT, 17 July, 2014: BankMuscat, the flagship financial institution in the Sultanate, announced its preliminary results for the six months ended 30th June 2014. The Bank posted net profit of RO 86.35 million for the period compared to RO 63.10 million reported during the same period in 2013.
Further to our early disclosures on merger of BMI Bank with Al Salam Bank in Bahrain, we have finalized the accounting treatment for the transaction in the Bank's book in this quarter. As per the International Financial Reporting Standards, we have accounted the investment in Al Salam as an associate at the adjusted fair value and accordingly recorded an investment gain of RO 9.48 million. This gain is included in the second quarter results as part of non-interest income.
The key highlights of the results for the period are as follows:
1) Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 120.41 million for the six months of 2014 compared to RO 114.00 million for the same period of 2013, an increase of 5.6 per cent.
2) Non-interest income at RO 72.89 million was higher by 40.9 per cent compared to RO 51.75 million for the six months ended 30th June 2013.
3) Operating expenses for the six-month period ended 30th June 2014 at RO 78.81 million as compared to RO 87.40 for the same period in 2013. Last year operating expenses included RO 14.98 million prepaid travel card operating loss provision. Excluding that, the operating expenses increased by 8.8 per cent.
4) Impairment for credit losses for the six-month period in 2014 was RO 27.36 million as against RO 17.48 million for the same period in 2013. Recoveries from impairment for credit loss was RO 14.18 million for the six-month period of 2014 as against RO 13.50 million for the same period in 2013.
5) Net Loans and advances increased by 9.8 per cent to RO 6,113 million as against RO 5,567 million as at 30th June2013.
6) Customer deposits, including CDs, increased by 10.6 per cent to RO 6,323 million as against RO 5,718 million as at 30th June 2013.
7) Islamic financing receivables amounted to RO 352 million as of 30th June 2014 compared to RO 214 million in the same period of 2013. Islamic Banking customer deposits amounted to RO 179 million as of 30th June 2014 compared to RO 133 million reported in 30th June 2013.
YTD June 2014 versus YTD June 2013
Key figures for the preliminary results | June-2014 (millions) | June-2013 (millions) | Change (%) |
Net interest income and Income from Islamic Financing | 120.41 | 114.00 | 5.6% |
Other operating income | 72.89 | 51.75 | 40.9% |
Operating expenses | 78.81 | 87.40 | (9.8)% |
Operating profit | 114.49 | 78.35 | 46.1% |
Net profit | 86.35 | 63.10 | 36.8% |
Net Loans and advances and Islamic Finance portfolio | 6,465 | 5,781 | 11.8% |
Customer deposits& Islamic Deposits | 6,502 | 5,851 | 11.1% |
The full results of the six-month period ended 30th June 2014 along with complete set of financial statements,will be released after the approval of the Board of directors of the Bank at its meeting scheduled later during July 2014.
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