BankMuscat reports 194pc jump in profit

Despite the gloomy global economic, BankMuscat, Oman's largest commercial bank, has recorded an impressive growth of 194 per cent in the year 2002, according to the bank officials.

Addressing the bank's annual general meeting, at the Muscat Intercontinental Hotel, Sheikh AbdulMalik bin Abdullah Al Khalili, chairman of BankMuscat, reviewed the financial results and noted that the bank achieved a net profit of 22.9 million riyals during the year ended December 31, as against a net profit of 7.8 million riyals for the year ended December 31, 2001.

The bank's net interest income has grown by 26 per cent from 49.7 million riyals as of December 31, 2001, to 62.5 million riyals as of December 31, 2002.

The non-interest income rose from 12.2 million riyals as of December 31, 2001, to 16.9 million riyals as of December 31, 2002, a growth of 39 per cent.

During the extraordinary general meeting, the shareholders approved the issue through subscription of negotiable bonds up to 100 million riyals. The shareholders also approved the board's recommendations to distribute 15 per cent cash dividend and five per cent bonus shares.

"Basic earnings per share for the year 2002 works out to 0.476 baiza for every one riyal share of the Bank as against 0.171 baiza for the year 2001, thereby recording an impressive growth of 178 per cent," claimed the bank's chairman.

He pointed out that diluted earnings per share for the year 2002 works out to 0.455 baiza for every one riyal share of the bank, which includes the dilutive potential equity shares to be issued on conversion of the convertible bonds in 2004.

Al Khalili added that the bank's Loans and Advances portfolio grew by 128 million riyals or 11.6 per cent to 1,226 million riyals at December 31, 2002, as compared with 1,098 million riyals as of December 31, 2001.

Customer deposits have grown by 169 million riyals or 18.9 per cent to 1,059 million riyals as of December 31, 2002, as compared with 890 million riyals as of December 31, 2001.

Savings deposits have also registered an impressive growth of 45.5 per cent from 127.5 million riyals as of December 31, 2001, to 185.5 million riyals as of December 31, 2002.

The chairman of BankMuscat also indicated that the operating profit at 42.1 million riyals as of December 31, 2002, has grown by 22 per cent as compared with 34.5 million riyals as of December 31, 2001.

Al Khalili added that the bank has made a loan loss provision of 20.7 million riyals during the year ended December 31, 2002, as against a loan loss provision of 26.1 million riyals made during the year ended December 31, 2001.