Bank Muscat topped analysts' expectations with a record profit in the second quarter on a more than doubling in first-half fee income and growth in loans as the Oman's stock market and economy boom.
Bank Muscat's profit jumped 47.8 per cent to 31.26 million rials (Dh298 million) in the three months to June 30, compared with 21.15 million rials a year earlier, according to a Reuters calculation based on first-half profit released by the bank.
The largest Omani lender by market value posted net profit of 57.8 million rials in the first half, it said in a statement. The quarterly earnings beat two forecasts of 28.50 million rials and 26.86 million rials in a Reuters net profit survey last month.
Leading the advancement in first-half profit was a 105.3 per cent surge in non-interest income from corporate, consumer and wholesale banking to 42.7 million rials from 20.8 million a year ago, the bank said.
Gulf Arab banks have boosted fee income as foreign investors pile into regional stocks and firms in the Gulf sell shares to the public to raise funds for expansion during a regional oil-fuelled economic boom.
Bank Muscat is advising on a $34.6 million (Dh127m initial public offering of Sohar Power Co that will close on July 31.
As many as three Omani firms could launch IPOs this year, Muscat Securities Market Chairman Abdullah al-Salmi said in March. Omani banks are also giving more loans as economies surge on a more than six-fold rise in oil prices since 2002.
Oman's $40 billion economy grew 12.9 per cent at current prices last year. Bank Muscat said net interest income for the six months grew 25.9 per cent to 74.7 million rials.
Impairment for credit and other losses rose to 13.1 million rials from 7.7 million a year earlier, the bank added. (Reuters)
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$40bn: Oman's $40 billion economy grew 12.9 per cent at current prices last year