Oman's Bank Muscat 1Q net profit falls 25% on fraud provision

Wednesday, Apr 17, 2013

DUBAI (Zawya Dow Jones)--Bank Muscat, Oman's biggest lender, Wednesday said first-quarter net profit fell by 25% compared to the same period last year due to losses from a prepaid travel card fraud.

Bank Muscat's first-quarter net profit was 25 million Omani rials ($65 million), down from OMR33.4 million in the same period last year, it said in a statement on the Muscat Securities Market website.

The results missed a forecast of OMR37.1 million from Egypt's Beltone Financial, but beat EFG Hermes' forecast of OMR22 million.

The bank said it took an operating loss provision of OMR15 million during the quarter to account for the fraud. It said in February that the fraud affected 12 of its prepaid travel cards in use outside the country.

"The bank is working on various channels to recover the loss arising from this exposure," the statement said.

Despite the fraud, the bank said its business continued to perform well during the first quarter. Net interest income rose by 3.8% year-on-year to OMR56.4 million, its statement showed.

Bank Muscat's shares are trading down 0.9% at OMR0.63 on Muscat bourse Wednesday.

Write to Asa Fitch at asa.fitch@dowjones.com

(END) Dow Jones Newswires

17-04-13 0711GMT