Bank Muscat net profit surge by 9.3 per cent in 2013
Insurers have agree to indemnify loss from Prepaid Travel Card fraud incident
Dubai: The net profit for Bank Muscat surged by 9.3 per cent to 152.2 million rials (Dh1.4 billion) in 2013 against 139.2 million rials reported for the year 2012.
In a statement issued on Wednesday, Bank Muscat said that its net interest income from conventional banking activities as well as from Islamic financing stood at 235.3 million rials for 2013 compared to 230.4 million rials for 2012. The other operating income at 104.8 million rials was higher by 12.4 per cent compared to 93.2 million rials for the previous year.
In relation to the exceptional operating loss provision that was considered in the first quarter of 2013 for the Prepaid Travel Card fraud incident, the bank’s insurers have agreed to indemnify the bank’s loss amounting to 14.9 million rials. The bank has reversed the loss provision created in the first quarter towards this specific loss through its fourth quarter of 2013 results.
Impairment for credit losses for 2013 was 50.5 million rials against 57.9 million rials in 2012. Recoveries from impairment for credit loss for 2013 were 32.5 million rials compared to 33.5 million rials for the same period last year.
Subsequent to the market disclosure on November 10, 2013, on the bank’s exit from its associate investment in Mangal Keshav Securities, the Indian securities firm, through a share buyback by the company, the bank has considered during the year, an impairment of 2.7 million rials on the carrying value of Mangal Keshav Securities.
Net loans and Islamic financing increased by 9.7 per cent to 6,143 million rials as against 5,601 million rials by the end of the year 2012.
