BankMuscat net profit up by almost 26%
BankMuscat (SAOG), Oman’s largest bank, held its Annual Ordinary General Meeting at the Crowne Plaza, Muscat on 5 April 2005 to approve the financial accounts for the year ending 31 December 2004.
Speaking on the occasion, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat (SAOG) said: “We would like to thank our shareholders for their support and encouragement in helping grow to what we are today. The year 2004 was a fruitful year for BankMuscat, as it saw our expansion plans take a step further into becoming reality. This was achieved by us obtaining a license to set up a branch in Riyadh, Saudi Arabia and completing all the necessary ground works for the formation of BankMuscat International, whose operations started on 1st January 2005.”
BankMuscat has achieved a net profit of RO 34.1 million during the year ended 31 December 2004 as against a net profit of RO 27.1 million for the year ended 31 December 2003, an increase of 25.8%. Net Interest Income has grown by 9.3% from RO 68.8 million in 2003 to RO 75.2 million in 2004. The operating profit of RO 55.3 million in 2004 is 13.1% higher than the RO 48.9 million achieved in 2003. The operating expenses of RO 42.7 million in 2004 are 7.7% higher than the RO 39.7 million incurred in 2003.
BankMuscat commands a market share of 36.7% in terms of total assets, 37.6% in terms of total credit and 33.3% in terms of total customer deposits. The Bank’s share of total savings deposits was 36.9% as at 31 December 2004.
The Bank’s net loans and advances portfolio grew by RO 85 million to RO 1,329 million on 31 December 2004 compared to RO 1,244 million on 31 December 2003. Customer deposits have grown by RO 83 million to RO 1,162 million on 31 December 2004 compared to RO 1,079 million on 31 December 2003. Savings deposits increased by 21% from RO 237 million on 31 December 2003 to RO 287 million on 31 December 2004.
The Bank made loan loss provisions of RO 20.4 million during the year ended 31 December 2004 compared to loan loss provision of RO 21.8 million made during the year ended 31 December 2003. The Bank holds a general loan loss provision of RO 8.9 million as at 31 December 2004. The Bank has recovered RO 6.3 million from classified assets in 2004, compared to RO 6.1 million in 2003.
The Board of Directors also recommended cash dividend of 25% and a stock dividend of 15% for the year 2004. Commenting on the Bank’s performance, AbdulRazak Ali Issa, BankMuscat’s chief executive said, “We are glad to share with you our financial performance for the year 2004. The growth we have witnessed in our performance this year is mainly attributable to the strong support we have received from our valued customers and the tireless efforts of our people who have ensured that we achieve the goals we have set for ourselves in 2004.”
The Ordinary General Meeting also saw the discussion of several other items on the agenda including approval of the Report of the Board of Directors for the year ended 31 December 2004, Directors remuneration and the appointment of auditors for the financial year 2005.