Bank Muscat posts RO130mn net profit for 9 months of 2017

Bank Muscat reported a net profit of RO130.26mn for the nine months period ended September 30, 2017 compared to RO136.91mn reported during the same period of previous year, a decrease of 4.9 per cent.

The bank’s net interest income from conventional banking increased 1.1 per cent to RO189.94mn for the first nine months of this year against RO187.95mn for the same period of 2016, according to Bank Muscat’s preliminary results announced to the Muscat Securities Market on Thursday.

Net income from Islamic financing was RO19.08mn compared to RO17.78mn last year, an increase of 7.3 per cent.

Non-interest income came at RO104.55mn compared to RO108.47mn for the same period of last year due to reduction in exchange income and other fees, Bank Muscat said in its disclosure.

Bank Muscat’s net loans and advances increased by 3.2 per cent to RO7.25bn as of September 30, 2017 from RO7.03bn a year ago. Customer deposits, however, decreased 3.5 per cent to RO6.59bn against RO6.83bn as of September 30, 2016.

Operating expenses for the nine month period ended September 30, 2017 stood at RO134.42mn as compared to RO129.02mn for the same period in 2016, an increase of 4.2 per cent. Impairment for credit losses for the nine month period in 2017 was RO53.01mn as against RO46.96mn for the same period in 2016. Recoveries from impairment for credit losses rose to RO30.95mn from RO22.69mn in the first nine months of 2016.

Bank Muscat’s Islamic financing receivables amounted to RO943mn as of September 30, 2017 compared to RO782mn in the same period of 2016. Islamic customer deposits amounted to RO930mn compared to RO746mn reported for the same period in 2016.

The bank said the full results of the nine month period ended September 30, 2017 along with complete set of unaudited financial statements will be released after the approval of the board of directors at its meeting scheduled later during October.