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Bank Muscat posts RO 102.51 million profit, board approves Q3 results

MUSCAT, 27 October 2013 - Bank Muscat, the flagship financial institution in the Sultanate, on Sunday (27 October 2013) announced the Q3 financial results, approved by the board of directors. The bank posted a net profit of RO 102.51 million for the 9-month period ending 30 September 2013 period compared to RO 104.19 million reported during the same period in 2012. 

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 growth in line with market conditions and prudent policies."

An exceptional operating loss provision of RO 15 million relating to the Prepaid Travel Card fraud incident (as disclosed to the market on February 25, 2013 and February 26, 2013) was considered in Q1 2013. The bank is working on various channels to recover the loss arising from this exposure.

Net interest income from conventional banking stood at RO 163.83 million for the nine months of 2013 compared to RO 168.28 million for the same period of 2012, a decrease of 2.6 per cent. The net income from Islamic Financing for the nine months of 2013 stood at RO. 8.1 million.

Non-interest income at RO 78.16 million was higher by about 16 per cent compared to RO 67.43 million for the nine months ended 30 September 2012. Operating expenses for the nine-month period ended 30 September 2013 at RO 123.02 million as compared to RO 98.93 for the same period in 2012, reflected an increase of 24.3 per cent (including prepaid travel card operating loss provision). Excluding the operating loss provision as stated above, the bank's operating expenses would have increased by 9.2% as compared to the same period in 2012.

Impairment for credit losses for the nine-month period in 2013 was RO 26.42 million as against RO 40.87 million for the same period in 2012. Recoveries from impairment for credit losses was RO 20.61 million as against RO 25.53 million for the nine months ended 30 September 2012. Share of profit from associates of RO 349 K was achieved during the period ended 30 September 2013 compared to share of loss of RO 1,515 K during the same period of last year.

Net loans and advances increased by 7 per cent to RO 5,741 million as against RO 5,359 million as at 30 September 2012. Customer deposits, including CDs, increased by 11.5 per cent to RO 5,527 million as against RO 4,955 million as at 30 September 2012.

Islamic Financing receivables amounted to RO 247 million and Islamic Banking customer deposits amounted to RO 124 million as of 30 September 2013.