BankMuscat Q1 net profit at RO26.5m

Net interest income increased by 31.2% to RO37.0m during the first quarter of 2008 from RO28.2m reported during the corresponding period in 2007, mainly driven by asset growth. Non-interest income has grown by 84.5% to RO17.9m
for the first quarter of 2008 as compared to RO9.7m of the same period in 2007. Operating income for the quarter ended March 31, 2008 increased by 45.1% to RO55.0m from RO37.9m for the same period in 2007. Operating expenses have increased by RO6.1m in the first quarter 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 reduced to 38.1% during the first quarter of 2008 as against 39.2% during the first quarter of 2007.

Impairment for credit and other losses was RO6.5m for the first quarter of 2008 as compared to RO4.1m during the corresponding period in 2007.

The basic earnings per share on an annualized basis works out to 99 baizas for every 100 baiza share of the Bank.

The Bank's net Loans and Advances of RO2,978m as of March 31, 2008 has grown by 46.3% as compared to the position as of March 31, 2007. Customer deposits grew by RO617m or 30.2% from RO2,040m as of March 31, 2007 to RO2,657m as of March 31, 2008. Savings deposits have registered an impressive growth of RO242m or 52.7% from RO459m as of March 31, 2007 to RO702m as of March 31, 2008.