REG - BankMuscat (S.A.O.G) - Results for half year ended 30 June 2014 <Origin Href="QuoteRef">BMAO.OM</Origin>

Bank Muscat SAOGAnnouncement

06/09/2014 18:25

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RNS Number : 6139M
BankMuscat (S.A.O.G)
17 July 2014 
 
For immediate release 
 
BankMuscat announces preliminary results for 6 months ended 30th June 2014 
 
YTD Net Profit at RO 86.35 million 
 
MUSCAT, 17 July, 2014: BankMuscat, the flagship financial institution in the
Sultanate, announced its preliminary results for the six months ended 30th
June 2014. The Bank posted net profit of RO 86.35 million for the period
compared to RO 63.10 million reported during the same period in 2013. 
 
Further to our early disclosures on merger of BMI Bank with Al Salam Bank in
Bahrain, we have finalized the accounting treatment for the transaction in the
Bank's book in this quarter. As per the International Financial Reporting
Standards, we have accounted the investment in Al Salam as an associate at the
adjusted fair value and accordingly recorded an investment gain of RO 9.48
million. This gain is included in the second quarter results as part of
non-interest income. 
 
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 120.41 million for the six months of 2014 compared to RO
114.00 million for the same period of 2013, an increase of 5.6 per cent. 
 
2)   Non-interest income at RO 72.89 million was higher by 40.9 per cent
compared to RO 51.75 million for the six months ended 30th June 2013. 
 
3)   Operating expenses for the six-month period ended 30th June 2014 at RO
78.81 million as compared to RO 87.40 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 six-month period in 2014 was RO
27.36 million as against RO 17.48 million for the same period in 2013.
Recoveries from impairment for credit loss was RO 14.18 million for the
six-month period of 2014 as against RO 13.50 million for the same period in
2013. 
 
5)   Net Loans and advances increased by 9.8 per cent to RO 6,113 million as
against RO 5,567 million as at 30th June2013. 
 
6)   Customer deposits, including CDs, increased by 10.6 per cent to RO 6,323
million as against RO 5,718 million as at 30th June 2013. 
 
7)   Islamic financing receivables amounted to RO 352 million as of 30th June
2014 compared to RO 214 million in the same period of 2013. Islamic Banking
customer deposits amounted to RO 179 million as of 30th June 2014 compared to
RO 133 million reported in 30th June 2013. 
 
   
 
 
YTD June 2014 versus YTD June 2013 
 
 Key figures for the preliminary results                June-2014(millions)  June-2013(millions)  Change(%)  
 Net interest income and Income from Islamic Financing  120.41               114.00               5.6%       
 Other operating income                                 72.89                51.75                40.9%      
 Operating expenses                                     78.81                87.40                (9.8)%     
 Operating profit                                       114.49               78.35                46.1%      
 Net profit                                             86.35                63.10                36.8%      
 Net Loans and advances and Islamic Finance portfolio   6,465                5,781                11.8%      
 Customer deposits& Islamic Deposits                    6,502                5,851                11.1%      
 
 
The full results of the six-month period ended 30th June 2014 along with
complete set of financial statements,will be released after the approval of
the Board of directors of the Bank at its meeting scheduled later during July
2014. 
 
...Ends… 
 
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