NBK Capital rates ‘Buy’ on Bank Muscat

July 14, 2015 11:44 AM

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Muscat – Mubasher: NBK Capital, the investment arm of Kuwait’s NBK, said in a report it placed a ‘Buy recommendation on Bank Muscat, setting the stock’s fair value at OMR 0.77, with 35% upside potential.

Bank Muscat’s net profit was up 7% quarter-on-quarter, driven by higher operating income, reaching OMR 47 million. Net profit was flat year-on-year, but Q2-14 net profit included one-off gain to the tune of OMR 9.5 million related to the merger of BMI Bank with Al Salam Bank. Adjusting for this one-off, net profit was up 25% YoY, according to the report issuer.

NBK Capital said also the bank’s operating income came 4.8% higher than its expectation, on stronger-than-expected non-interest income. Meanwhile, non-interest income was up 18% y-o-y (excluding the one-off in Q2-14) and 9% q-o-q, leading to an 8% y-o-y increase in the adjusted operating income, which reached OMR 102 million.

Bank Muscat’s loans declined slightly in the second quarter. Loans declined around 1% q-o-q in Q2, while deposits (including certificates of deposits) increased around 9% q-o-q.

Source: english.mubasher.info

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