|
BankMuscat achieves net profit of RO 60.4
million, grows by 33%
|
● |
Loans
and advances increase by 33.7%; Customer
deposits increase by 40.7% |
|
● |
Proposed 35% cash dividend and 10% stock
dividend |
Muscat.
January 22, 2007: BankMuscat (SAOG), the
nation’s premier bank, has declared a net profit
of RO 60.4 million for the year ended 31
December 2006, as against a net profit of RO
45.4 million for the year ended 31 December
2005, an increase of 33%. These results are
subject to due approval by the shareholders and
regulatory authorities.
Net interest income increased by 27.5% from RO
78.1 million in 2005 to RO 99.5 million in 2006.
Non-interest income grew from RO 23.3 million in
2005 to RO 31.1 million in 2006, an increase of
33.5%. Operating profit of RO 77.3 million in
2006 is 34.9% higher than the RO 57.3 million
achieved in 2005. Operating expenses of RO 53.3
million in 2006 are higher by 21% than RO 44.0
million incurred in 2005. The Cost to Income
ratio for the year was at 40.8% as compared to
43.5% in 2005.
The return on average assets improved from 2.3%
in 2005 to 2.4% in 2006. The return on average
equity improved from 20.2% in 2005 to 21.9% in
2006. The basic earnings per share increased
from RO 0.058 in 2005 to RO 0.073 in 2006, which
works to be a return of 73% on a nominal value
of a share.
The Bank’s net loans and advances portfolio grew
by RO 463 million or 33.7% to RO 1,835 million
as at 31 December 2006 compared to RO 1,372
million as at 31 December 2005. Customer
deposits increased by RO 526 million or 40.7% to
RO 1,817 million as at 31 December 2006 compared
to RO 1,291 million as at 31 December 2005.
Savings deposits increased by 26% from RO 338
million as at 31 December 2005 to RO 426 million
as at 31 December 2006.
The Bank made loan loss provisions of RO 18.4
million during the year compared to RO 24.4
million made during the year ended 31 December
2005. Loan loss provision charge of RO. 18.4
million for the year 2006 includes RO. 8.9
million towards general loan loss provision as
per the requirement of Central Bank of Oman. As
of 31 December 2006, the Bank has fully met the
general loan loss provision requirement of
Central Bank of Oman. The Bank holds a general
loan loss provision of RO 31.1 million as at 31
December 2006. During the year 2006, the Bank
recovered RO 7.3 million from provision for
possible credit losses compared to RO 15.9
million in 2005.
The Bank’s associates contributed RO. 4.1
million as share of profits during the year 2006
as against a RO. 3.7 million of 2005.
The Board of Directors pleased to recommend a
cash dividend of 35% and stock dividend of 10%
for the year 2006, subject to due approval by
the shareholders and regulatory authorities,
thus keeping up the practice of consistently
providing good returns to shareholders.
|
