25 May 2013
Muscat: BMI Bank, the Bahrain-based associate of Bank Muscat, has agreed in principle for a merger with Al Salam Bank, an Islamic bank incorporated in Bahrain.
The completion of the transaction, including final share-swap ratio, is subject to satisfactory due-diligence as well as regulatory and shareholder approvals, Bank Muscat said in a statement posted on MSM website.
Bank Muscat has a shareholding of 49 per cent in BMI bank.
Bank Muscat in its latest annual report said that BMI Bank last year reported marginal profits.
However, Bank Muscat has taken additional provisions against this investment to account for potential future provisioning against key impaired accounts in the bank's credit portfolio.
"The net result has been additional losses to Bank Muscat for last year on account of this investment," said the annual report.
"While the global economic situation continued to be challenging in 2012 on the back of sovereign debt issues in Europe and slowing growth in key emerging markets like China and India, some of the Gulf Cooperation Council (GCC) markets, namely Oman, Saudi Arabia and Qatar performed well in terms of both economic growth as well as credit expansion. Other Gulf Cooperation Council markets, namely Kuwait, Bahrain and Unted Arab Emirates, however, saw more subdued credit growth," the report added, referring to performance of the bank's associates in other countries.
Muscat: BMI Bank, the Bahrain-based associate of Bank Muscat, has agreed in principle for a merger with Al Salam Bank, an Islamic bank incorporated in Bahrain.
The completion of the transaction, including final share-swap ratio, is subject to satisfactory due-diligence as well as regulatory and shareholder approvals, Bank Muscat said in a statement posted on MSM website.
Bank Muscat has a shareholding of 49 per cent in BMI bank.
Bank Muscat in its latest annual report said that BMI Bank last year reported marginal profits.
However, Bank Muscat has taken additional provisions against this investment to account for potential future provisioning against key impaired accounts in the bank's credit portfolio.
"The net result has been additional losses to Bank Muscat for last year on account of this investment," said the annual report.
"While the global economic situation continued to be challenging in 2012 on the back of sovereign debt issues in Europe and slowing growth in key emerging markets like China and India, some of the Gulf Cooperation Council (GCC) markets, namely Oman, Saudi Arabia and Qatar performed well in terms of both economic growth as well as credit expansion. Other Gulf Cooperation Council markets, namely Kuwait, Bahrain and Unted Arab Emirates, however, saw more subdued credit growth," the report added, referring to performance of the bank's associates in other countries.
© Times of Oman 2013
