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Resilient results as BankMuscat posts RO80.4m Q3 net profit

Oman: Sunday, October 25 - 2009 @ 15:32

The Bank achieved a net profit of RO80.4m for the nine months ended September 30, 2009 compared to RO90.1m reported during the same period in 2008. Net interest income increased by 10% to RO126.8m during the 9-month period ended September 30, 2009 from RO115.2m reported during the corresponding period in 2008.

Non-interest income has grown by RO40.9m to RO99.8m in the 9- month period ended September 30, 2009 as compared to RO58.9m 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 RO64.2m remained at the same level of operating expenses incurred during 2008. Impairment for credit losses for the 9-month period in 2009 was RO68.7m as against RO18.6m in 2008, an increase of RO50.1m. This includes provisions for Saudi branch exposures and necessary collective provisions.

Share of loss from associates was at RO5.3m for the nine months ended September 30, 2009, as compared to RO2.5m of share of profit in September 2008.

The Bank’s net Loans and Advances of RO3,727m 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 RO2,849m as of September 30, 2008 to RO3,298m 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 RO134.10m against the target of RO250m within one-year timeframe.

The Bank played a key role in facilitating the signing of $197.8m 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 $48.9m. 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.

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Sunday, October 25- 2009 @ 15:32 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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