18 April 2013
Muscat: Bank Muscat yesterday said its net profit declined by 25.15 per cent to OMR25 million in the first quarter of 2013 from OMR33.4 million for the same period last year, mainly due to losses arising from a major prepaid travel card fraud.
Announcing the preliminary results for the first quarter, the bank noted that an exceptional operating loss provision of OMR15 million, related to the prepaid travel card fraud incident, has been considered in the first-quarter accounts, in accordance with International Financial Reporting Standards (IFRS).
The bank is working through 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. The bank commenced operations for its Islamic banking window 'Meethaq' at the start of the quarter and is now offering a suite of Islamic banking products to clients. Bank Muscat maintains a completely segregated book of accounts for Meethaq business, in compliance with Sharia rules and the Central Bank of Oman Islamic Banking Regulatory Framework. Meethaq's financial results are consolidated in the bank's financial statements for the purpose of consolidated financial reporting; these statements include appropriate disclosures related to the Islamic banking business.
Bank Muscat acknowledged that its net interest income for conventional banking stood at OMR54.9 million for the first three months of 2013, compared to OMR54.4 million for the same period in 2012. The net interest income did not increase in line with asset growth in 2013 due to a reduction in net interest margins.
Net income from Islamic financing for the first quarter in 2013 stood at OMR1.5 million. Other operating income, at OMR24.3 million, was comparable to the OMR24.6 million earned in the first quarter of 2012.
Operating expenses stood at OMR51.3 million, compared to the OMR33.5 million incurred previously, during the period under review. Excluding the operating loss provision, the bank's operating expenses would have increased by 8 per cent, compared to the first quarter of 2012.
Impairment for credit losses for the first quarter of 2013 was OMR7.4 million, as against OMR12.5 million for the same period in 2012.
Net loans and advances increased by 10 per cent to OMR5,486 million, as against OMR4,988 million on March 31, 2012. Customer deposits, including certificates of deposits, increased by 9 per cent to OMR5,506 million, as against OMR5,055 million on March 2012.
Islamic financing receivables amounted to OMR188 million during the quarter, and Islamic banking customer deposits amounted to OMR126.4 million. The full results of the first quarter period, ended March 2013, along with the complete set of financial statements will be released after they are approved by the Board of Directors at its meeting scheduled later in April 2013.
Muscat: Bank Muscat yesterday said its net profit declined by 25.15 per cent to OMR25 million in the first quarter of 2013 from OMR33.4 million for the same period last year, mainly due to losses arising from a major prepaid travel card fraud.
Announcing the preliminary results for the first quarter, the bank noted that an exceptional operating loss provision of OMR15 million, related to the prepaid travel card fraud incident, has been considered in the first-quarter accounts, in accordance with International Financial Reporting Standards (IFRS).
The bank is working through 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. The bank commenced operations for its Islamic banking window 'Meethaq' at the start of the quarter and is now offering a suite of Islamic banking products to clients. Bank Muscat maintains a completely segregated book of accounts for Meethaq business, in compliance with Sharia rules and the Central Bank of Oman Islamic Banking Regulatory Framework. Meethaq's financial results are consolidated in the bank's financial statements for the purpose of consolidated financial reporting; these statements include appropriate disclosures related to the Islamic banking business.
Bank Muscat acknowledged that its net interest income for conventional banking stood at OMR54.9 million for the first three months of 2013, compared to OMR54.4 million for the same period in 2012. The net interest income did not increase in line with asset growth in 2013 due to a reduction in net interest margins.
Net income from Islamic financing for the first quarter in 2013 stood at OMR1.5 million. Other operating income, at OMR24.3 million, was comparable to the OMR24.6 million earned in the first quarter of 2012.
Operating expenses stood at OMR51.3 million, compared to the OMR33.5 million incurred previously, during the period under review. Excluding the operating loss provision, the bank's operating expenses would have increased by 8 per cent, compared to the first quarter of 2012.
Impairment for credit losses for the first quarter of 2013 was OMR7.4 million, as against OMR12.5 million for the same period in 2012.
Net loans and advances increased by 10 per cent to OMR5,486 million, as against OMR4,988 million on March 31, 2012. Customer deposits, including certificates of deposits, increased by 9 per cent to OMR5,506 million, as against OMR5,055 million on March 2012.
Islamic financing receivables amounted to OMR188 million during the quarter, and Islamic banking customer deposits amounted to OMR126.4 million. The full results of the first quarter period, ended March 2013, along with the complete set of financial statements will be released after they are approved by the Board of Directors at its meeting scheduled later in April 2013.
© Times of Oman 2013
