Bank Muscat (BM) matched the asset growth in the banking sector in Oman. Of the aggregate credit in 2008, it captured 40.3% share or RO3,727.7mn and its total assets increased at a CAGR of 31.1% during 2003-2008.
Also, the loans and advances during the same period increased at a CAGR of 23.2%. Gross loans and advances increased to RO3,853.3mn, up by 37.8% from RO2,795.6mn at the end of 2007.
The bank achieved a net income growth of 11.2%, reaching RO93.7mn in 2008 from RO84.3mn in 2007. Interest income was up by 20.7%, registering a value of RO263.5mn in 2008 compared to RO218.3mn in 2007. BM’s commission income registered a y-o-y increase of 45.8% increasing from RO37.6mn in 2007 to RO54.8mn in 2008 as a result of rise in income from loans & advances.
Further, the bank achieved a net profit of RO26.5mn for 1Q08 as against a net profit of RO19.0mn reported during 1Q07. The first quarter net profit includes RO35.3mn of post-tax gain on sale of HDFC Bank investment. The Bank sold 81% of its 2.67% stake in HDFC Bank, India in March 2009. However, excluding this gain, BM’s net profit stood at RO13.1mn, almost half of 1Q08 figure. Further, the bank has accounted for RO7.5mn towards realized (RO5.8mn) and unrealized losses (RO1.7mn). Net interest income increased by 7.0% to RO39.6mn during 1Q09 from RO37.0mn in 1Q08.
The subdued growth in net interest income was mainly because of diminishing LIBOR rate, which resulted in lower yields on bank placements.
