BankMuscat net profit rises 39.4% to 84.2m riyals

Muscat: BankMuscat, Oman's largest bank recorded a 39.4 per cent growth in 2007 with a net profit of 84.2 million Omani riyals, as against a net profit of 60.4 million riyals in 2006, a statement said.

The bank has made loan loss provisions of 17.8 million riyals during the year compared to 18.4 million riyals made during the previous year (2006).

Loan loss provision charge of 17.8 million riyals for the year 2007 includes 9.2 million riyals towards non-specific loan loss provisions as per the requirement of Central Bank of Oman.

The Board of directors of the Bank recommended a cash dividend of 50 per cent for the year 2007, subject to due approval by the shareholders and regulatory authorities, thus keeping up the practice of consistently providing good returns to shareholders.

At the end of 2007, the bank held a non-specific loan loss provision of 40.2 million riyals. Last year, the bank recovered 7.7 million riyals from provision for possible credit losses compared to 7.3 million riyals in 2006.

The bank's net interest income increased by 25.1 per cent from 99.8 million riyals in 2006 to 124.8 million riyals in 2007.

Non-interest income grew from 30.8 million riyals in 2006 to 48.1 million riyals in 2007, a growth of 56.2 per cent as a result of increased business volumes, product cross selling and new products and services.

Operating profit of 102.6 million riyals in 2007 is 32.7 per cent higher than the 77.3 million achieved in 2006.

However, inflation and subsequent salary hikes partly affected the bank's operating expenses.

Operating expenses of 70.3 million riyals in 2007 were higher by 31.8 per cent than 53.3 million riyals incurred in 2006.

The basic earnings per share increased from 0.066 riyals in 2006 to 0.090 riyals in 2007, which works to be a return of 90 per cent on a nominal value of a share.

BankMuscat enjoys a market share of 42.7 per cent in terms of total assets, 43.3 per cent in terms of total credit and 38 per cent in terms of total customer deposits as at 30 November 2007.