Bank Muscat posts RO84.3mn net profit for first half of 2017
16 Jul 2017

Bank Muscat posts RO84.3mn net profit for first half of 2017


Bank Muscat posted a net profit of RO84.31mn for the six months period ended June 30, 2017; a decrease of 6.8 per cent compared with RO90.47mn reported during the same period of 2016.

The bank announced its preliminary results for the first half of 2017 on Thursday in a disclosure filed with the Muscat Securities Market.

Its net interest income from conventional banking stood at RO125.63mn for the first six months of 2017 compared to RO124.42mn for the same period last year, an increase of one per cent. Net income from Islamic financing grew 5.4 per cent to RO12.4mn from RO11.76mn for the same period of 2016.

Bank Muscat’s non-interest income decreased to RO68.57mn for the first half of 2017 compared to RO74.58mn for the same period of 2016 due to reduction in exchange income and other fees, the bank said.

Operating expenses for the six month period increased by 3.8 per cent to RO89.36mn as compared to RO86.06mn for the same period in 2016.

Impairment for credit losses was RO35.44mn as against RO32.72mn for the same period in 2016. Recoveries from impairment for credit losses were RO20.04mn in the first six months of 2017 as against RO15.66mn in the same period of last year.

Bank Muscat’s net loans and advances grew by 4.8 per cent to RO7.17bn as of June 30, 2017 from RO6.84bn a year ago. Customer deposits decreased by 4.9 per cent to RO6.57bn from RO6.9bn a year ago.

The bank’s Islamic financing receivables jumped to RO915mn as of June 30, 2017 from RO749mn a year ago. Islamic customer deposits rose to RO906mn from RO733mn in the first half of 2016.

Bank Muscat said its share of income from an associate for the six month period in 2017 was RO1.16mn as against a RO0.48mn for the same period in 2016.

The bank said the full results of the six month period ended June 30, 2017 along with complete set of unaudited financial statements will be released after the approval of the board of directors at its meeting scheduled later in July.

Source: Muscat Daily