Oman’s Bank Muscat Q2 profit up 30 pct
Q2 net profit 29.4 mln rials - Reuters calculations; Impairment for credit losses rise to 25.7 mln rials in H1; Results beat average analysts forecasts
July 13, 2011 2:26 by Reuters
Bank Muscat , Oman’s largest lender by market value, reported a 30-percent-increase in second-quarter net profit on Wednesday, beating analysts estimates.
The lender made a net profit of 29.4 million rials ($76.36 million) for the three month period ending June 30, according to Reuters calculations. That compares with 22.6 million rials the lender reported in the prior-year period.
Analysts polled by Reuters had estimated an average second quarter profit of 28.7 million rials.
Reuters calculated the net profit figure based on the bank’s previous financial results. It posted a net profit of 57.2 million rials for the first half of the year, compared with 47 million rials for the same period last year, a statement posted on the Muscat bourse showed.
Impairment for credit losses in the first six months of the year rose to 25.7 million rials, compared with 20.7 million rials in the same period last year.
In May, BofA Merrill Lynch upgraded Bank Muscat to “buy” from “neutral” and said loan growth will likely gain momentum this year and reach a sustainable 13 percent from 2012 onwards, driven by a pick-up in corporate credit activity.
Loans and advances increased 11.5 percent during the first half, the lender said.
Bank Muscat shares have fallen 11.6 percent year-to-date. ($1=.3850 Omani Rial) (Reporting by Dinesh Nair; Editing by Jason Benham)