Bank Muscat posted a net profit of RO176.82mn for the for the year ended 31 December 2017 compared to RO176.56mn reported during the same period in 2016, an increase of 0.1 per cent. The bank announced its unaudited preliminary results for 2017, subject to approval of external auditors, board of directors, Central Bank of Oman and shareholders.
The key highlights of the results for the period are as follows:
Net interest income from conventional banking and income from Islamic financing stood at RO281.34mn for the year 2017 compared to RO274.15mn for the same period in 2016, an increase of 2.6 per cent.
Non-interest income at RO154.62mn was higher by 8.9 per cent compared to RO142.03mn for the year ended 31 December 2016. This includes one-off investment gain of RO12.8mn on sale of certain investments.
Operating expenses for the year ended 31 December 2017 at RO184.08mn was higher by 5.7 per cent as compared to RO174.08mn for the same period in 2016.
Impairment for credit losses for the year was RO63.15mn as against RO70.29mn for the same period in 2016. Recoveries from impairment for credit loss was RO41.17mn for the year as against RO36.24mn for the same period in 2016.
Share of income from an associate for the year was RO2.44mn against RO1.73mn for the same period in 2016.
In December 2017, the investment in Al Salam Bank was reclassified from an Equity Associate governed under International Accounting Standards (IAS) 28 to Available-for-Sale investment under IAS 39 due to change in significant influence. Unrealised loss at the time of reclassification from equity associate to available-for-sale investment of RO17.54mn has been accounted in the income statement.
Net loans and advances, including Islamic financing receivables, increased by 4.7 per cent to RO8,329mn as against RO7,957mn as at 31 December 2016. Customer deposits, including Islamic customer deposits, decreased by 0.5 per cent to RO7,419mn as against RO7,458mn as at 31 December 2016.
The full results for the year ended 31 December 2017 along with the complete set of financial statements will be released post approval of the board of directors of the bank at its meeting scheduled later during January 2018.