Muscat - bank muscat has reported a 25 per cent decline in net profit for the first quarter of 2013 to RO25mn from RO33.4mn in the same period last year.
In a press release issued on Wednesday, the bank said that an exceptional operating loss provision of RO15mn relating to the prepaid travel card fraud incident, as disclosed in February this year, has been considered in the first quarter accounts in accordance with IFRS.
"The bank is working on various channels to recover the loss arising from this exposure. The bank's key business lines continued to perform well in line with expectations and market potential," bank muscat said.
Net loans and advances grew ten per cent to RO5.48bn as compared to RO4.98bn, while customer deposits, including CDs, increased nine per cent to RO5.5bn at the end of the first quarter 2013 as against RO5.05bn a year ago.
bank muscat's net interest income from conventional banking increased marginally by 0.9 per cent to RO54.9mn from RO54.4mn.
"Net interest income did not increase in line with asset growth in 2013 due to reduction in net interest margins," the bank said.
The bank's other operating income at RO24.3mn in the first quarter of 2013 was comparable to RO24.6mn in the first quarter of 2012.
Impairment for credit losses was RO7.4mn for the first quarter this year as against RO12.5mn for the same period in 2012.
Net income from the bank's Islamic finance operations stood at RO1.5mn in the first quarter of this year. Islamic finance receivables amounted to RO188mn during the first quarter and Islamic banking customer deposits amounted to RO126.4mn.
The bank commenced its Islamic banking window 'Meethaq' in the start of the first quarter and is now offering a suite of Islamic banking products to clients.
"We maintain a segregated book of accounts for the Meethaq business in compliance with Sharia rules and the Central Bank of Oman Islamic Banking Regulatory Framework. Meethaq financial results are consolidated in the bank's financial statements for the purpose of consolidated financial reporting and include appropriate disclosures relating to the Islamic banking business," bank muscat said.
© Muscat Daily 2013
