Bankmuscat H1 Net Up 20pc

BankMuscat, the flagship financial institution in the Sultanate, posted a 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 close to 20 per cent.

Announcing its half-year 2012 preliminary results, BankMuscat said net interest income rose 2.8 per cent to RO 108.9 million in H1-12 compared to RO 105.9 million in H1-11. Excluding a 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 June 30, 2012 climbed 8 per cent to RO 66.3 million, as compared to the same period in 2011. The increase is mainly attributable to a rise in manpower costs, the bank said. 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. Net Loans and advances increased by 21 per cent to RO 5,181 million as against RO 4,267 million as at June 30, 2011.

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

The results are subject to the approval of the Board of Directors. The bank will release the final results for H1-2012 along with complete set of financial statements after the necessary approval by the Board of Directors at its meeting scheduled later during July 2012.

Omanobserver