BankMuscat, the nation’s premier financial institution, declared its financial results for the first half of 2005. The Bank recorded an impressive net profit figure of RO 21.1 million during the first half of the year 2005 as against a net profit of RO 15.0 million during the first half of 2004 recording an impressive growth of 40%. Net profit of RO. 21.1 million for the first half 2005 includes an amount of RO. 2.8 million being profit on disposal of Bahrain Branch subsequent to incorporation of “Bank Muscat International” (BMI), Bahrain with effect from January 1, 2005. The Bank holds 49% of the paid up share capital of BMI and remaining being held by regional investors. The Bank’s net profit for the first half 2005, after excluding the extraordinary profit on disposal of its Bahrain Branch and related tax provision, works out to RO. 18.6 million which is higher by 24% over the net profit of first half 2004.
The Bank’s investment in BMI is being accounted for as “Investment in Associate” under Equity Method of Accounting. The financials of BMI are not consolidated line-by-line in the Bank’s results for the first half of 2005 whereas the comparative figures of first half results of 2004 were fully consolidated with the results of Bahrain Branch.
Net interest income has decreased by 8% from RO 37.5 million for the first half of the year 2004 to RO 34.6 million for the first half of the year 2005 on account of exclusion of Bahrain operations in 2005. Non-interest income has grown from RO 10.6 million for the first half of 2004 to RO 11.3 million for the first half of 2005, a growth of 6% in spite of exclusion of Bahrain operations results in 2005. The operating expenses have marginally increased by 1% during the first half of 2005 as compared to the first half of 2004.
The basic earnings per share on an annualized basis works out to 572 baizas for every one Rial share of the Bank. This works out to a return of 57.2% on an annualized basis on share capital.
The Bank’s net Loans and Advances of RO. 1,221 million as of June 30, 2005 has grown by 7% as compared to the position as of June 30, 2004 of Oman operations. However, on a consolidated basis, it shows a reduction of 2% since the previous year figure included the Bahrain branch portfolio.
Total customer deposits grew by RO. 113 million or 9% from RO. 1,281 million as of June 30, 2004 to RO. 1,394 million as of June 30, 2005. However, the growth on a like to like basis as compared to Oman operations position as of June 30, 2004 was 20%. Savings deposits have registered an impressive growth of RO 51 million or 20% from RO 255 million as of June 30, 2004 to RO 306 million as of June 30, 2005.
