26th Oct 2009 07:00
Resilient results as BankMuscat posts RO 80.4 million Q3 net profit
MUSCAT, 25 October 2009 - BankMuscat, the leading financial services provider in the Sultanate, yesterday (25 October) announced the financial results, approved by the board of directors, for the nine-month period ending 30 September 2009.
The Bank achieved a net profit of RO 80.4 million for the nine months ended September 30, 2009 compared to RO 90.1 million reported during the same period in 2008. Net interest income increased by 10% to RO 126.8 million during the 9-month period ended September 30, 2009 from RO 115.2 million reported during the corresponding period in 2008.
Non-interest income has grown by RO 40.9 million to RO 99.8 million in the 9- month period ended September 30, 2009 as compared to RO 58.9 million for the same period in 2008 mainly on account of the gain on sale of HDFC Bank investment. However, non-interest income excluding the gain on HDFC Bank investment and realised losses on Available-for-Sale investment was lower by 9% compared to the same period in 2008.
The Bank successfully contained the operating expenses in 2009. Operating expenses for the 9-month period ended September 30, 2009 at RO 64.2 million remained at the same level of operating expenses incurred during 2008. Impairment for credit losses for the 9-month period in 2009 was RO 68.7 million as against RO 18.6 million in 2008, an increase of RO 50.1 million. This includes provisions for Saudi branch exposures and necessary collective provisions.
Share of loss from associates was at RO 5.3 million for the nine months ended September 30, 2009, as compared to RO 2.5 million of share of profit in September 2008.
The Bank's net Loans and Advances of RO 3,727 million as of September 30, 2009 has grown by 7% as compared to the position as at September 30, 2008. Customer deposits, including CDs have seen a growth of 16% from RO 2,849 million as of September 30, 2008 to RO 3,298 million as of September 30, 2009.
During the third quarter 2009, the strategic initiatives by the Bank included the continuing series of Certificate of Deposit (CD) auction. To date, from eight rounds of CD auctions, the Bank has accepted bids totaling RO 134.10 million against the target of RO 250 million within one-year timeframe.
The Bank played a key role in facilitating the signing of USD197.8 million Credit Facilities Agreement for Sohar Port Special Projects, firstly as financial adviser and then as facility agent and account bank. The Bank was the largest participant in these credit facilities with USD 48.9 million. The transaction for setting up marine infrastructure for Vale's biggest pellet plant outside Brazil was quite significant in the regional project finance market in general and Omani banking market in particular. It was the first transaction in more than a year to achieve financial close on a project finance basis.
Related Shares:
Bankmuscat Regs