DUBAI: Bank Muscat, Oman’s largest bank by market value, reported an 87 percent jump in second-quarter net profit helped by reduced credit losses and higher deposits but still fell short of analysts expectations.
The Omani bank’s second-quarter net profit climbed to 22.51 million rials, according to Reuters calculations, from 12.02 million rials in the second quarter of 2009.
The company reported a net profit of 47 million rials for the six months ended June 30.
Analysts polled by Reuters had estimated an average net profit for the second quarter of 26.4 million rials.
In a statement, Bank Muscat said net interest income for the first half climbed by 6 percent, while credit losses for the first six months fell to 20.7 million from 51.5 million in the comparable period last year.
Customer deposits climbed almost 11 percent in the first half from the year-ago period.
The bank, like many in the region, has been under pressure from the global financial crisis.
In June, Bank Muscat chairman AbdulMalik bin Abdullah Al-Khalili said the company has put its international expansion plans on hold but was continuing to look to grow within the Gulf Cooperation Council.
The lender has embarked on an aggressive investment strategy in the recent past. Through its stake in BMI Bahrain, BankMuscat has ventured into Qatar, Kenya, and the Seychelles.
It also holds stakes in banks in Pakistan and India. BankMuscat sold its stake in Indian bank HDBC last year.
The bank has a 49 percent stake in BMI Bank, Bahrain, and is present in Saudi Arabia with a branch in Riyadh. Recently, it opened a branch in Kuwait and has a representative office in Dubai.
It is also awaiting branch licenses in the United Arab Emirates and Qatar.
Bank Muscat was downgraded by HSBC in May to neutral from overweigh on valuation concerns. HSBC said that it still liked the company as a long-term story within the Omani banking industry.
Shares of Bank Muscat fell 1.7 percent to 0.812 rials at 0624 GMT.
