Bank Muscat sustains net profit at OMR44 million in first quarter

Muscat: Bank Muscat, the flagship financial services provider in the Sultanate, posted a net profit of OMR43.8 million for the three months ended March 2016 compared to OMR43.3 million reported for the same period in 2015, an increase of 1.1 per cent. The bank announced the first quarter 2016 results approved by the board of directors.
Net interest income from conventional banking and income from Islamic financing stood at OMR68.04 million for the three months of 2016 compared to OMR61.56 million for the same period in 2015, an increase of 10.5 per cent.
Non-interest income at OMR40 million was higher by 10.5 per cent compared to OMR36.19 million for the three months ended March 2015. Operating expenses for the three month period ended March 2016 at OMR43.44 million was higher by 3.6 per cent as compared to OMR41.95 million for the same period of 2015.
Impairment for credit losses for the three month period in 2016 was OMR16.95 million as against OMR12.84 million for the same period in 2015. Recoveries from impairment for credit losses were OMR5.4 million for the three-month period in 2016 as against OMR7.22 million for the same period in 2015. Share of income from associates for the first quarter of 2016 was a loss of OMR0.22 million as against a share of profit of OMR0.48 million for the same period of 2015.
Net Loans and advances from conventional operation increased by 6.9 per cent to OMR6,917 million as at March 2016 as against OMR6,472 million as at March 2015. Customer deposits, including certificates of deposit from the conventional operations increased by 7 per cent to OMR6,974 million as at March 2016 as against OMR6,519 million as at March 2015.
Islamic financing receivables amounted to OMR665 million as at March 2016 compared to OMR432 million as at March 2015. Islamic Banking customer deposits amounted to OMR678 million as of March 2016 compared to OMR308 million as at March 2015.
The basic earnings per share for the quarter ended March 2016 was OMR0.018 as against OMR0.018 for the quarter ended March 2015. The bank’s capital adequacy ratio stood at 16.13 per cent as at March 2016 against the minimum required level of 12.625 per cent as per Basel III regulations issued by the Central Bank of Oman.