BankMuscat betters nine-month results- BankMuscat, the leading financial services provider in the Sultanate, yesterday announced the financial results, approved by the board of directors, for the nine-month period ending September 30.
 The bank achieved a net profit of RO80.4 million for the nine months ended September 30, 2009, compared to RO90.1 million reported during the same period in 2008. Net interest income increased by 10 per cent to RO126.8 million during the nine-month period ended September 30, 2009, from RO115.2 million reported during the corresponding period in 2008.

Non-interest income has grown by RO40.9 million to RO99.8 million in the nine- month period ended September 30, 2009, as compared to RO58.9 million for the same period in 2008 mainly on account of the gain on sale of HDFC Bank investment. However, non-interest income excluding the gain on HDFC Bank investment and realised losses on Available-for-Sale investment, was lower by 9 per cent compared to the same period in 2008.

Operating expenses

The bank successfully contained the operating expenses in 2009. Operating expenses for the nine-month period ended September 30, 2009, at RO64.2 million remained at the same level of operating expenses incurred during 2008. Impairment for credit losses for the nine-month period in 2009 was RO68.7 million as against RO18.6 million in 2008, an increase of RO50.1 million. This includes provisions for Saudi branch exposures and necessary collective provisions.

Share of loss from associates was at RO5.3 million for the nine months ended September 30, 2009, as compared to RO2.5 million of share of profit in September 2008.

The bank’s net Loans and Advances of RO3,727 million as of September 30, 2009, has grown by 7 per cent as compared to the position as at September 30, 2008. Customer deposits, including CDs have seen a growth of 16 per cent from RO2,849 million as of September 30, 2008 to RO3,298 million as of September 30, 2009.

During the third quarter 2009, the strategic initiatives by the bank included the continuing series of Certificate of Deposit (CD) auction. To date, from eight rounds of CD auctions, the bank has accepted bids totalling RO134.10 million against the target of RO250 million within one-year time frame.

Key role

The bank played a key role in facilitating the signing of $197.8 million Credit Facilities Agreement for Sohar Port Special Projects, firstly as financial adviser and then as facility agent and account bank.

The bank was the largest participant in these credit facilities with $48.9 million. The transaction for setting up marine infrastructure for Vale’s biggest pellet plant outside Brazil was quite significant in the regional project finance market in general and Omani banking market in particular. It was the first transaction in more than a year to achieve financial close on a project finance basis.