Oman's bank Muscat second quarter profit up 19 percent

Oman’s bank Muscat second quarter profit up 19 percent

Q2 net profit 35 million rials, beats estimates; H1 profit 68.4 million rials; Impairments for H1 down slightly, at 25 mln rials

July 16, 2012 4:54 by Reuters

Bank Muscat, Oman’s largest lender by market value, posted a 19-percent increase in second-quarter net profit, slightly higher than analysts’ expectations.

The bank made a net profit of 35 million rials ($90.9 million) for the three months to June 30, according to Reuters’ calculations, up from the 29.4 million rials in the same period last year.

Analysts polled by Reuters had estimated an average second-quarter profit of 33.2 million rials.

Reuters calculated the net profit figure based on the bank’s previous financial results. It posted a net profit of 68.4 million rials for the first half of the year, compared to 57.2 million rials in the prior-year period.

Loans and advances rose 21 percent year-on-year to 5.18 billion rials at the end of June compared to 4.27 billion rials at the same point last year, an Oman bourse statement said.

Customer deposits rose 16.3 percent, largely driven by demand and saving deposits, the statement said, while provisions for the six months to June 30 totalled 25 million rials, down 2.8 percent from the prior-year period.

Bank Muscat said last month it was planning to raise 96.7 million rials from a rights issue due to take place July 9-23. Capital raised from the offering would be used to fund credit expansion and its future Islamic banking window.

In a separate bourse announcement on Monday, Bank Muscat said the rights issue would close a day earlier, on July 22, because July 23 had been declared a public holiday in Oman.

Shares in Bank Muscat were trading 3.5 percent higher at 0830 GMT, but are 21 percent lower so far this year.

($1 = 0.3851 Omani rials) (Reporting by Rachna Uppal; Editing by David French)