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Bank Muscat posts RO 126.73 million profit, board approves Q3 results

MUSCAT, 29 October 2014 – Bank Muscat, the flagship financial institution in the Sultanate, on Wednesday (29 October 2014) announced the Q3 financial results, approved by the board of directors. The bank posted a net profit of RO 126.73 million for the 9-month period ending 30 September 2014 compared to RO 102.51 million reported during the same period in 2013.

Shaikh Khalid bin Mustahail Al Mashani, Chairman of Bank Muscat, said: “The key business lines of the bank maintained performance momentum during the period. Going forward, the bank will continue its prudent policies and align growth according to market conditions, which pose a challenging situation."

The key highlights of the results for the period are as follows 

  1. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 182.75 million for the nine months of 2014 compared to RO 171.97 million for the same period of 2013, an increase of 6.3 per cent.
  2. Non-interest income at RO 104.1 million was higher by 33.2 per cent compared to RO 78.16 million for the nine months ended 30 September 2013. This includes one-off investment gain of RO 9.4 million arising from investment in Al Salam Bank accounted in second quarter 2014.
  3. Operating expenses for the nine-month period ended 30 September 2014 stood at RO 117.55 million as compared to RO 123.02 for the same period in 2013. Last year, operating expenses included RO 14.98 million prepaid travel card operating loss provision. Excluding that, the operating expenses increased by 8.8 per cent.
  4. Impairment for credit losses for the nine-month period in 2014 was RO 40.71 million as against RO 26.42 million for the same period in 2013. Recoveries from impairment for credit loss was RO 19.55 million for the nine-month period of 2014 as against RO 20.61 million for the same period in 2013. Share of income from associates for the nine-month period in 2014 was RO 896,000 against RO 349,000 for the same period in 2013.
  5. Net Loans and advances increased by 5.2 per cent to RO 6,042 million as against RO 5,741 million as at 30 September 2013.
  6. Customer deposits, including CDs, increased by 14.9 per cent to RO 6,351 million as against RO 5,527 million as at 30 September 2013.
  7. Islamic financing receivables amounted to RO 385 million as of 30h September 2014 compared to RO 247 million in the same period of 2013. Islamic Banking customer deposits amounted to RO 231 million as of 30 September 2014 compared to RO 124 million on 30 September 2013.

     

    YTD September 2014  versus  YTD September 2013
Key figures for the preliminary results

9 months ended Sep 2014

(millions)

9 months ended Sep 2013

(millions)

Change

(%)

Net interest income and Income from Islamic Financing182.75171.976.3%
Other operating income104.1078.1633.2%
Operating expenses117.55123.02(4.4)%
Operating profit169.30127.1133.2%
Net profit126.73102.5123.6%
Net Loans and advances and Islamic Finance portfolio6,4275,9887.3%
Customer deposits & Islamic Deposits6,5825,65116.5%

Q3 2014 versus Q2 2014

Key figures for the preliminary results

3 months ended Sep 2014

(millions)

3 months ended June 2014

(millions)

Change

(%)

Net interest income and Income from Islamic Financing62.3461.261.8%
Other operating income31.2142.78(27.0)%
Operating expenses38.7339.57(2.1)%
Operating profit54.8264.47(14.9)%
Net profit40.3946.58(13.3)%
Net Loans and advances and Islamic Finance portfolio6,4276,465(0.6)%
Customer deposits & Islamic Deposits6,5826,5021.2%