BankMuscat announces preliminary results for H109

15 Jul 2009 12:05

For immediate release

BankMuscat announces preliminary results for H109

Net profit at RO. 60.4 million, an increase of 5%

Muscat, July 16, 2009: BankMuscat (SAOG), the nation's leading financial services institution, has announced the preliminary results for the half year ended June 30, 2009. The preliminary result was approved by the Board of Directors on July 15, 2009.

The Bank achieved net profit of RO. 60.4 million for the six months ended June 30, 2009 compared to net profit of RO. 57.8 million reported during the same period in 2008. The net profit for the first half 2009 includes RO. 53.2 million of post-tax gain on sale of HDFC Bank investment. The Bank had sold its remaining stake in HDFC Bank, India in June 2009 and as a result total post-tax gain of RO. 53.2 million is reflected in the Income Statement in the first half results 2009.

During the second quarter of 2009, the Bank has made provision for credit losses amounting to RO. 40.2 million. This includes provisions on the Bank's exposures to two large business groups in Saudi Arabia, the Al Gosaibi and the Saad Group. 

The key highlights of the first half 2009 results are as follows:

Net interest income increased by 12% to RO 83.4 million during the six months period ended June 30, 2009 from RO 74.7 million reported during the corresponding period in 2008.

Non interest income excluding the gain on HDFC Bank investment and realized losses on Available-for-Sale investment was lower by 9% compared to the same period in 2008.

The Bank successfully contained the operating expenses in 2009. Operating expenses for the first half 2009 at RO. 42.4 million lower by RO. 1.1 million compared to the same period in 2008.

In Q109, the bank had accounted for RO 7.5 million in respect of realised and unrealised losses on the AFS investment portfolio. In Q209, an additional RO. 1.9 million of realised and unrealised losses on the AFS investment portfolio was accounted.

Impairment for credit losses for the first half 2009 was RO. 51.5 million as against RO. 13.1 million, an increase of RO. 38.4 million.

Net loans and advances increased by 20% to RO. 3,818 million as against RO. 3,192 million as at June 30, 2008.

Customer deposits including CDs increased by 14% to RO. 3,214 million as against RO 2,816 million as at June 30, 2008.

The Bank will release the final results along with complete set of financial statements for the six months period ended June 30, 2009 after the necessary approval by the Board of Directors during the last week of July 2009.

...Ends…