BankMuscat reports net profit of RO 24.5 million
BankMuscat (SAOG), Oman’s premier bank has announced its 9-month results for the period ended 30 September 2004. The Bank achieved a net profit of RO 24.5 million during the first nine months of the year 2004 as against a net profit of RO 20.4 million during the first nine months of 2003 recording a growth of 20%.
The net interest income has grown by 7% from RO 52.2 million for the nine months of the year 2003 to RO 55.8 million for the nine months of the year 2004. The non-interest income has grown from RO 14.7 million for the nine months of 2003 to RO 16.6 million for the nine months of 2004, a growth of 13%.
The operating profit at RO 41.8 million for the nine months of 2004 has grown by 13% as compared to RO 37 million for the nine months of 2003. The operating expenses have increased by 2.6% during the nine months of 2004 as compared to the nine months of 2003. The Cost to Income Ratio has substantially improved to 42.33% as of September 30,2004 as compared to 44.68% as of September 30, 2003.
The Bank has made a loan loss provision of RO 15.3 million during the first nine months of 2004 as against RO 17.4 million made during the first nine months of 2003. The loan loss provision coverage has increased to 109% as of September 30,2004 as compared to 93.25% as of September 30, 2003. The bank holds RO 3 million as a general loan loss provision. The Bank has been able to effect recoveries of RO 3.9 million as of September 30, 2004 as compared to RO 4 million as of September 30, 2003.
The basic earnings per share on an annualized basis works out to 547 baiza for every one Rial share of the Bank. This works out to a return of 54.7% on an annualized basis on share capital.
The Bank’s net Loans and Advances portfolio grew by RO 39 million or 3 % to RO 1,252 million as of September 30, 2004 as compared to RO 1,212 million as of September, 2003. The Savings deposits have registered an impressive growth of RO 51 million or26 % from RO 197 million as of September 30,2003 to RO 248 million as of September 30,2004. The total customer deposits grew by RO 215 million or 20% from RO 1,070 million as of September 30, 2003 to RO 1,285 million as of September 30, 2004 which includes USD 250 million raised by the Bank by way of Euro Medium Term Notes during the second quarter of this year.
The most significant development in the third quarter, which promises to have a lasting impact on the Bank and the banking industry as a whole, was the Boards of BankMuscat and National Bank of Oman, approving a merger proposal between the two banks. The proposal has since received necessary in principle regulatory approvals and is pending an approval from the shareholders of the two banks. (menareport.com)