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Bank Muscat net profit rises to RO 163.23 million

MUSCAT, 15 January, 2015 - Bank Muscat, the flagship financial institution in the Sultanate, posted a net profit of RO 163.23 million for the year ended 31 December 2014 compared to RO 152.19 million reported during the same period in 2013, an increase of 7.3 per cent. 

The key highlights of the preliminary results announced for the period are as follows:

1)      Net interest income from conventional banking and income from Islamic financing stood at RO 243.64 million for the year 2014 compared to RO 235.32 million for the same period of 2013, an increase of 3.5 per cent.

2)      Non-interest income at RO 139.47 million was higher by 33 per cent compared to RO 104.83 million for the year ended 31 December2013. 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 year ended 31 December 2014 at RO 157.89 million was higher by 9.9 per cent as compared to RO 143.68 million for the same period in 2013.

4)      Impairment for credit losses for the year 2014 was RO 64.33 million as against RO 50.46 million for the same period in 2013. Recoveries from impairment for credit loss was RO 26.06 million for 2014 as against RO 32.53  million for the same period in 2013.

5)      Share of income from associates for 2014 was RO 1.52 million as against RO 1.30 million for the same period in 2013.

6)      Net loans and advances increased by 8.4 per cent to RO 6,353 million in 2014 as against RO 5,864 million in 2013.

7)      Customer deposits, including CDs, increased by 13.3 per cent to RO 6,345 million as against RO 5,600 million in 2013.

8)      Islamic financing receivables amounted to RO 400 million in 2014 compared to RO 279 million in 2013. Islamic banking customer deposits amounted to RO 283 million in 2014 compared to RO 93 million in 2013.

YTD December 2014 versus YTD December 2013

Key figures for the preliminary results 12 months ended Dec 2014

(millions)     12 months ended Dec 2013

(millions)     Change

(%)

Net interest income and income from Islamic financing    243.64         235.32         3.5%

Other operating income   139.47         104.83         33.0%

Operating expenses         157.89         143.68         9.9%

Operating profit     225.22         196.47         14.6%

Net profit     163.23         152.19         7.3%

Net loans and advances and Islamic finance portfolio       6,754 6,143 9.9%

Customer deposits & Islamic deposits  6,628 5,693 16.4%

Q4 2014 versus Q3 2014

Key figures for the preliminary results 3 months ended Dec 2014

(millions)     3 months ended Sep 2014

(millions)     Change

(%)

Net interest income and income from Islamic financing    60.89 62.34 (2.3)%

Other operating income   35.37 31.21 13.3%

Operating expenses         40.34 38.73 4.2%

Operating profit     55.92 54.82 2.0%

Net profit     36.50 40.39 (9.6)%

Net loans and advances and Islamic finance portfolio       6,754 6,427 5.1%

Customer deposits & Islamic deposits  6,628 6,582 0.7%

The full results of the year ended 31 December 2014 along with complete set of financial statements will be released post-approval of the Board of Directors of the bank at its meeting scheduled later during January 2015 and after the Central Bank of Oman approval.