BankMuscat profit soars in third quarter

During the period in question, the Bank achieved a net profit of RO 34.1 million during the first nine months of the year 2005 as against a net profit of RO 24.5 million during the first nine months of 2004 recording an impressive growth of 39%.

Subsequent to the incorporation of BankMuscat International (BMI), Bahrain (with effect from January 1, 2005) the financials of BMI are not consolidated line-by-line in the Bank's results for the first nine months of 2005. The Bank holds 49% of the paid up share capital of BMI, the remaining being held by regional investors. The Bank's investment in BMI is being accounted for as "Investment in Associate" under Equity Method of Accounting.

Net interest income has decreased by 2% from RO 55.8 million for the first nine months of the year 2004 to RO 54.8 million for the first nine months of the year 2005 on account of exclusion of Bahrain operations in 2005. Non-interest income has grown from RO 16.7 million for the first nine months of 2004 to RO 17.2 million for the first nine months of 2005, a growth of 3% in spite of exclusion of Bahrain operations results in 2005. The operating expenses have marginally increased by 1% during the first nine months of 2005 as compared to the first nine months of 2004.

Provision for possible losses of RO 18.9 million for the nine months of 2005 as compared to RO 15.3 million for the corresponding period of 2004 includes a provision of RO. 4 million towards the Bank's full share of loss as a result of a trading dispute between our associate BankMuscat International (BMI) and a counterparty. The dispute has since been resolved.

The basic earnings per share on an annualized basis works out to 647 baizas for every one Rial share of the Bank. This works out to a return of 64.7% on an annualized basis on share capital.

The Bank's net Loans and Advances of RO. 1,284 million as of 30 September 2005 has grown by 12% as compared to the position as of 30 September 2004 of Oman operations. However, on a consolidated basis, it shows a marginal growth of 3% since the previous year figure included the Bahrain branch portfolio.

Total customer deposits grew by RO. 146 million or 11% from RO. 1,285 million as of 30 September 2004 to RO. 1,431 million as of 30 September 2005. However, the growth on a like to like basis as compared to Oman operations position as of 30 September 2004 was 24%. Savings deposits have registered an impressive growth of RO 37 million or 15% from RO 248 million as of Sep 30, 2004 to RO 285 million as of 30 September 2005.