Bank Muscat reports OMR177m net profit

Business Monday 15/January/2018 12:50 PM
By: Times News Service
Bank Muscat reports OMR177m net profit

Muscat: Bank Muscat, the leading financial institution in the Sultanate, posted a net profit of OMR176.82 million for the year ended December 31, 2017 compared to OMR176.56 million reported for 2016, a marginal increase of 0.1 per cent. The bank announced its unaudited preliminary results for 2017, subject to approval of external auditors, board of directors, Central Bank of Oman and shareholders.
The bank’s net interest income from conventional banking and income from Islamic financing stood at OMR281.34 million for 2017 compared to OMR274.15 million for the same period in 2016, an increase of 2.6 per cent.
The non-interest income of the bank at OMR154.62 million was higher by 8.9 per cent compared to OMR142.03 million for the previous year. This includes one-off investment gain of OMR12.8 million on sale of certain investments.
Operating expenses of the bank in 2017 at OMR184.08 million was higher by 5.7 per cent as compared to OMR174.08 million for 2016.
Impairment for credit losses for the year was OMR63.15 million as against OMR70.29 million for the same period in 2016. Recoveries from impairment for credit loss was OMR41.17 million for the year against OMR36.24 million for the same period in 2016.
The bank’s share of income from an associate for 2017 was OMR2.44 million against OMR1.73 million for the same period in 2016.
In December 2017, the investment in Al Salam Bank was reclassified from an equity associate governed under International Accounting Standards (IAS) 28 to available-for-sale investment under IAS 39 due to change in significant influence. Unrealised loss at the time of reclassification from equity associate to available-for-sale investment of OMR17.54 million has been accounted in the Income statement.
Net loans and advances of the bank, including Islamic financing receivables, increased by 4.7 per cent to OMR8,329 million as against OMR7,957 million as of December 31, 2016.
The bank’s customer deposits, including Islamic customer deposits, edged down by 0.5 per cent to OMR7,419 million as against OMR7,458 million as of December 31, 2016.