Muscat: Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary results for the six months ended on June 30th, 2014. The Bank posted net profit of OMR86.35 million for the period compared to OMR63.10 million reported during the same period in 2013.
The statement issued by Bank Muscat said that further to the early disclosures on merger of BMI Bank with Al Salam Bank in Bahrain, the Bank has finalised the accounting treatment for the transaction in the Bank's book in this quarter.
As per the International Financial Reporting Standards, the Bank has accounted the investment in Al Salam as an associate at the adjusted fair value and accordingly recorded an investment gain of OMR9.48 million. This gain is included in the second quarter results as part of non-interest income.
The key highlights of the results for the period represented in net interest income from conventional banking and income from Islamic financing that stood at OMR120.41 million for the six months of 2014 compared to OMR114.00 million for the same period of 2013, an increase of 5.6 per cent.
The statement added that non-interest income stood at OMR72.89 million, which was higher by 40.9 per cent compared to OMR51.75 million for the six months ended on June 30th, 2013.
Operating expenses for the six-month period ended on June 30th, 2014 at hit OMR78.81 million as compared to OMR87.40 for the same period in 2013. Last year operating expenses included OMR14.98 million prepaid travel card operating loss provision. Excluding that, the operating expenses increased by 8.8 per cent.
The Bank's statement pointed out that impairment for credit losses for the six-month period in 2014 was OMR7.36 million as against OMR17.48 million for the same period in 2013. Recoveries from impairment for credit loss was OMR14.18 million for the six-month period of 2014 as against OMR13.50 million for the same period in 2013. Net Loans and advances increased by 9.8 per cent to OMR6,113 million as against OMR5,567 million as at June 30th, 2013.
Customer deposits, including CDs, increased by 10.6 per cent to OMR6,323 million as against OMR5,718 million as at June 30th, 2013. Islamic financing receivables amounted to OMR352 million as of 30th June 2014 compared to OMR214 million in the same period of 2013. Islamic Banking customer deposits amounted to OMR179 million as of 30th June 2014 compared to OMR133 million reported in 30th June 2013.
The full results of the six-month period ended 30th June 2014 along with complete set of financial statements, will be released after the approval of the Board of Directors of the Bank at its meeting scheduled later during July 2014.