Bankmuscat Board Okays H1 Results

BankMus-cat, the flagship financial services provider in the Sultanate, yesterday announced the H1 financial results, approved by the board of directors.

The bank posted net profit of RO 68.4 million for the six months ended June 30, 2012 compared to RO 57.2 million reported during the same period in 2011, an increase of 20 per cent. Net interest income at RO 108.9 million in H1-12 compared to RO 105.9 million in H1-11 an increase of 2.8 per cent. Excluding the one-off positive impact in the net interest income in H1-11, the same would have increased by 9 per cent. Non-interest income at RO 45.8 million was higher by about 12 per cent compared to RO 40.9 million for the six-months ended June 30, 2011. Operating expenses for the six-month period ended 30 June 2012 at RO 66.3 million increased by 8 per cent as compared to the same period in 2011. Increase in operating expenses is mainly attributable to increase in manpower cost.

Impairment for credit losses for the six-month period in 2012 was RO 25 million as against RO 25.7 million for the same period in 2011. Recoveries from impairment for credit losses was RO 15.1 million as against RO 11.5 million for the six months period ended 30 June 2011. Share of profit from associates was RO 310 K for the six months ended 30 June 2012 as against a share of loss RO 3.6 million the previous year same period.

Net Loans and advances increased by 21 per cent to

RO 5,181 million as against RO 4,267 million as at 30 June 2011. Customer deposits, including CDs, increased by 16.3 per cent to RO 5,040 million as against RO 4,332 million as at 30 June 2011. The increase was largely driven by demand and saving deposits.

Omanobserver