Bank Muscat announced its preliminary results for the six months ended 30th June 2014. The Bank posted net profit of OMR 86.35 million for the period compared to OMR 63.10 million reported during the same period in 2013.
"Further to our early disclosures on merger of BMI Bank with Al Salam Bank in Bahrain, we have finalized the accounting treatment for the transaction in the Bank's book in this quarter. As per the International Financial Reporting Standards, we have accounted the investment in Al Salam as an associate at the adjusted fair value and accordingly recorded an investment gain of OMR 9.48 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 are as follows:
Net Interest Income from Conventional Banking and Income from Islamic Financing stood at OMR 120.41 million for the six months of 2014 compared to OMR 114.00 million for the same period of 2013, an increase of 5.6 per cent.
Non-interest income at OMR 72.89 million was higher by 40.9 per cent compared to OMR 51.75 million for the six months ended 30th June 2013.
Operating expenses for the six-month period ended 30th June 2014 at OMR 78.81 million as compared to OMR 87.40 for the same period in 2013. Last year operating expenses included OMR 14.98 million prepaid travel card operating loss provision. Excluding that, the operating expenses increased by 8.8 per cent.
Impairment for credit losses for the six-month period in 2014 was OMR 27.36 million as against OMR 17.48 million for the same period in 2013. Recoveries from impairment for credit loss was OMR 14.18 million for the six-month period of 2014 as against OMR 13.50 million for the same period in 2013.
Net Loans and advances increased by 9.8 per cent to OMR 6,113 million as against OMR 5,567 million as at 30th June2013.
Customer deposits, including CDs, increased by 10.6 per cent to OMR 6,323 million as against OMR 5,718 million as at 30th June 2013.
Islamic financing receivables amounted to OMR 352 million as of 30th June 2014 compared to OMR 214 million in the same period of 2013. Islamic Banking customer deposits amounted to OMR 179 million as of 30th June 2014 compared to OMR 133 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.