MUSCAT, 16 April, 2014 - Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary results for the three months ended 31 March 2014. The bank posted net profit of RO 39.76 million for the period compared to RO 24.99 million reported during the same period in 2013.
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 59.15 million for the first three months of 2014 compared to RO 56.42 million for the same period of 2013, an increase of 4.8 per cent.
2) Non-interest income at RO 30.12 million was higher by 24 per cent compared to RO 24.33 million for the three months ended 31 March 2013.
3) Operating expenses for the three-month period stood at RO 39.24 million as compared to RO 51.32 for the same period in 2013. Last year, the operating expenses included RO 14.98 million prepaid travel card operating loss provision. Excluding that, the operating expenses increased by 8 per cent.
4) Impairment for credit losses for the three-month period in 2014 was RO 10.21 million as against RO 7.45 million for the same period in 2013.
5) Net loans and advances increased by 8.8 per cent to RO 5,968 million as against RO 5,486 million as at 31 March 2013.
6) Customer deposits, including CDs, increased by 11 per cent to RO 6,112 million as against RO 5,506 million as at 31 March 2013.
7) Islamic financing receivables amounted to RO 316 million compared to RO 188 million in the same period of 2013. Islamic banking customer deposits amounted to RO 110 million as of 31 March 2014 compared to RO 126 million reported in 31 March 2013.
8) With effect from 31 March 2014, the acquisition of BMI by Al Salam Bank Bahrain ("ASBB") has been completed. Bank Muscat is a 14.7 per cent shareholder in ASBB. BMI is now wholly owned subsidiary of ASBB, which will be considered as an associate of Bank Muscat from Q2 2014.
Key figures Mar-2014
Net interest income and income from Islamic Financing 59.15 56.42
Other operating income 30.12 24.33
Operating expenses 39.24 51.32
Operating profit 50.03 29.43
Net profit 39.76 24.99
The full results of the three-month period ended 31 March 2014 along with complete set of financial statements, will be released after approval of the Board of Directors of the bank at its meeting scheduled later during April 2014.