BankMuscat records 43.7% half-year growth

Muscat, Oman: BankMuscat, a financial services institution, has posted 43.7 per cent growth in the bank's net profit for the first half of this year.

The net profit is reported to be 57.8 million Omani riyals as against a net profit of 40.2 million riyals reported during the same period in 2007.

Net interest income increased by 25.9 per cent to 74.7 million riyals during the first half of 2008 from 59.3 million riyals reported during the corresponding period in 2007. Increase in net interest income has been largely attributable to asset growth.

Non-interest income has grown by 21.9 million riyals to 42.7 million riyals during the first half of 2008 as compared to 20.8 million riyals of the same period in 2007. Non-interest income growth was mainly attributable to increase in fee income from core business lines such as corporate banking, consumer banking and wholesale banking.

Operating income for the half-year ended June 30, 2008 increased by 46.7 per cent to 117.4 million from 80 million riyals for the same period in 2007.

The operating expenses increased by 11.8 million riyals or 37.3 per cent during the first half of 2008 as compared to the same period in 2007, mainly due to increase in manpower and other administrative costs as a result of increased business activities and expansion of business lines.

However, cost to income ratio was reduced to 37.1 per cent during the first half of 2008 as against 39.5 per cent during the first half of 2007.