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Bank Muscat profit rises 9.3% to 152m rials

January 16, 2014

Staff Reporter MUSCAT Bank Muscat has posted a 9.3 per cent rise in net profit for 2013. The profit went up to 152.2 million rials against 139.2 million rials in the previous year. While net interest income from conventional banking and net income from Islamic banking stood at 235.3 million rials against last year's 230.4 million rials , the bank reversed the provision of 14.9 million rials made in the first quarter of 2013 towards 'exceptional operating loss' in the prepaid travel card fraud. The reversal was made in the fourth quarter which saw net profit go up to 49.7 million rials compared to 35 million rials during the same quarter last year. The bank had witnessed one of the biggest cyber fraud cases, forcing it to make a provision in the first quarter of 2013 itself. This had quite a significant say on its earnings. In December, the bank had announced that it would reverse the impairment in its annual results after payout by insurers. Other operating income stood at 104.8 million rials , higher by 12.4 per cent compared to 93.2 million rials for 2012. Operating expenses were 143.7 million rials compared to 134.6 rials last year, an increase of 6.7 per cent. The impairment for credit losses was 50.5 million rials against 57.9 million rials last year and recoveries from impairment for credit loss stood at 32.5 million rials compared to 33.5 million rials during 2012. The profit share from associates rose to 1.3 million rials when it stood at a loss of 3.4 million rials last year. Net loans and Islamic financing were up by 9.7 per cent to 6,143 million rials against 5,601 million rials last year. Deposits, including CDs, went up 5.9 per cent to 5,693 million rials when it was 5,378 million rials last year. The bank had made a disclosure in November that was exiting from its associate investment in the Indian securities firm, Mangal Keshav Securities . It had proposed a share buyback and made provisions for an impairment of 2.7 million rials on the carrying value of the Indian firm investment.OMAN TRIBUNE

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Source: Oman Tribune

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