BankMuscat net profit up by 43.7%
BankMuscat (SAOG), Oman’s leading financial services institution, achieved a net profit of RO 57.8 million for the half year ended June 30, 2008 as against a net profit of RO 40.2 million reported during the same period in 2007, which resulted in an impressive growth of 43.7%.
Net interest income increased by 25.9% to RO 74.7 million during the first half of 2008 from RO 59.3 million reported during the corresponding period in 2007. Increase in net interest income largely attributable to asset growth. Non-interest income has grown by RO 21.9 million to RO 42.7 million during the first half of 2008 as compared to RO 20.8 million of the same period in 2007.
Non-interest income growth was mainly attributable to increase in fee income from core business lines such as Corporate Banking, Consumer Banking and Wholesale Banking. Operating income for the half year ended June 30, 2008 increased by 46.7% to RO 117.4 million from RO 80.0 million for the same period in 2007.
Operating expenses increased by RO 11.8 million or 37.3% during the first half of 2008 as compared to the same period in 2007, mainly due to increase in manpower and other administrative costs as a result of increased business activities and expansion of business lines. However, cost to income ratio reduced to 37.1% during the first half of 2008 as against 39.5% during the first half of 2007.
Impairment for credit and other losses was RO 13.1 million for the first half of 2008 as compared to RO 7.7 million during the corresponding period in 2007.
The basic earnings per share on an annualized basis works out to 107 baizas for every 100 baiza share of the Bank.
The Bank’s net Loans and Advances of RO 3,192 million as of June 30, 2008 has grown by 45.1% as compared to the position as of June 30, 2007. Customer deposits grew by RO 651 million or 30.2% from RO 2,152 million as of June 30, 2007 to RO 2,803 million as of June 30, 2008. Savings deposits have registered an impressive growth of RO 270 million or 50.7% from RO 533 million as of June 30, 2007 to RO 803 million as of June 30, 2008.