BankMuscat preliminary results for H1 2012

BankMuscat announces preliminary results for H1 2012

YTD Net Profit at RO 68.4 million

MUSCAT, 16 July 2012: BankMuscat, the flagship financial institution in the Sultanate, announced its H1 2012 preliminary results. The Bank posted net profit of RO 68.4 million for the six months ended 30th June 2012 compared to RO 57.2 million reported during the same period in 2011, an increase close to 20 per cent.

The key highlights of the results for the six-month period ended 30th June 2012 are as follows:

1) Net interest income at RO 108.9 million in H1-12 compared to RO 105.9 million in H1-11 an increase of 2.8 per cent. Excluding the one-off positive impact in the net interest income in H1-11, the same would have increased by 9 per cent.

2) Non-interest income at RO 45.8 million was higher by about 12 per cent compared to RO 40.9 million for the six-months ended 30 June 2011.

3) Operating expenses for the six-month period ended 30 June 2012 at RO 66.3 million increased by 8 per cent as compared to the same period in 2011. Increase in operating expenses is mainly attributable to increase in manpower cost.

4) Impairment for credit losses for the six-month period in 2012 was RO 25 million as against RO 25.7 million for the same period in 2011.

5) Net Loans and advances increased by 21 per cent to RO 5,181 million as against RO 4,267 million as at 30 June 2011.

6) Customer deposits, including CDs, increased by 16.3 per cent to RO 5,040 million as against RO 4,332 million as at 30 June 2011. The increase was largely driven by demand and saving deposits.

The results are subject to the approval of the Board of Directors. The Bank will release the final results for H1-2012 along with complete set of financial statements after the necessary approval by the Board of Directors at its meeting scheduled later during July 2012.

...Ends…