16 November 2011
MUSCAT:: BankMuscat, Oman's biggest bank, is in a discussion with the Washington-based International Finance Corporation (IFC) to secure $170 million of subordinated debt.
This investment by IFC is designed to strengthen the bank's capital position and support long-term dollar funding and asset growth, the bank said in a statement posted on MSM website. This transaction is subject to the approval of the IFC board and the regulators in the Sultanate.
Market sources said that the bank is sourcing funds to meet the growing demand for credit.
"There is a lot of demand for credit now. We were anticipating an incremental credit growth (of the banking industry) of RO800 million for the entire year. But it has already crossed RO1 billion now," said Sankar Kailasam, senior vice-president of Gulf Baader.
"With this facility, BankMuscat is preparing itself for meeting the growth in demand for credit, not only for this year, but also for the coming year." Kailasam said other banks may also secure subordinated loan facilities to meeting the growing demand.
BankMuscat earlier announced a 21 per cent growth in net profit at RO87.1 million for the first nine months of 2011, over the same period last year.
The growth in net earnings was attributed to a robust 16.7 per cent surge in net interest income at RO159.9 million for the first nine months, from RO137.1 million for the same period last year.
Further, non-interest income at RO60.8 million was higher by 18.3 per cent compared to RO51.4 million for the first three quarters of 2010. Net loans and advances increased by 17.2 per cent to RO4,537 million.
From RO3,870 million, while customer, including certificates of deposits, increased by 37.2 per cent to RO4,723 million as against RO3,442 million during the period under review.
MUSCAT:: BankMuscat, Oman's biggest bank, is in a discussion with the Washington-based International Finance Corporation (IFC) to secure $170 million of subordinated debt.
This investment by IFC is designed to strengthen the bank's capital position and support long-term dollar funding and asset growth, the bank said in a statement posted on MSM website. This transaction is subject to the approval of the IFC board and the regulators in the Sultanate.
Market sources said that the bank is sourcing funds to meet the growing demand for credit.
"There is a lot of demand for credit now. We were anticipating an incremental credit growth (of the banking industry) of RO800 million for the entire year. But it has already crossed RO1 billion now," said Sankar Kailasam, senior vice-president of Gulf Baader.
"With this facility, BankMuscat is preparing itself for meeting the growth in demand for credit, not only for this year, but also for the coming year." Kailasam said other banks may also secure subordinated loan facilities to meeting the growing demand.
BankMuscat earlier announced a 21 per cent growth in net profit at RO87.1 million for the first nine months of 2011, over the same period last year.
The growth in net earnings was attributed to a robust 16.7 per cent surge in net interest income at RO159.9 million for the first nine months, from RO137.1 million for the same period last year.
Further, non-interest income at RO60.8 million was higher by 18.3 per cent compared to RO51.4 million for the first three quarters of 2010. Net loans and advances increased by 17.2 per cent to RO4,537 million.
From RO3,870 million, while customer, including certificates of deposits, increased by 37.2 per cent to RO4,723 million as against RO3,442 million during the period under review.
© Times of Oman 2011
