BankMuscat Marketing Department

Oman Daily Observer
Dated:30-04-02

BankMuscat conducted an annual ordinary general meeting of the shareholders yesterday and approved the financial results of 2001.
BankMuscat's net profit for the year 2001 was RO 7.8 million. The net profit is lower by RO 8.5 million as compared to the year 2000, due to higher level of loan loss provisions made during the year 2001 amounting to RO 23.5 million (net), as compared to RO 10 million made during the year 2000. The economic stagnation prevailing in the market over the last two years has necessitated taking in more loan loss provisions this year. The Bank's operating profit before provisions and taxes continued to grow by RO 5.6 million or 19 percent over 2000.
The Bank has adopted International Accounting Standard (IAS) 39 "Financial Instrument: Recognition and Measurement" during the year 2001. This has resulted in significant changes in the accounting policies of the Bank in respect of recognition and measurement of financial instruments. The adoption of the standard has resulted in a debit adjustment of RO 7.2 million to the opening retained earnings. 
The Board of Directors recommend a 10 percent cash dividend for the year 2001 on the expanded share capital (including rights issue shares) from the profit of 2001, even in a year which has affected performance of the banking industry adversely.