The board of directors of BankMuscat have announced a net profit of 57.2 million Omani riyals (Dh544 million) for the six months ended June 30, compared to 47 million riyals reported during the same period in 2010, an increase of 21.7 per cent.
The bank's net interest income increased by 20.2 per cent to 105.9 million riyals during the six months period ended June 30, 2011, from 88.1 million riyals reported during the corresponding period in 2010.
The increase in net interest income was due to combination of asset growth and improvement in net interest margin. Non-interest income at 40.9 million riyals was higher by 21 per cent compared to 33.8 million riyals in the first half of 2010. Operating expenses for the first half of 2011 at 61.2 million riyals increased by 23.8 per cent as compared to the same period in 2010.
Increase in operating expenses is attributable to higher manpower cost and operating expenses related to investment in facilities.