Bank Muscat Net Income increased on 7.5% in 2015 and Revenue increased on 3.3%
14 Jan 2016 • About Bank Muscat (
$BKM) • By InTwits
Bank Muscat reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bank Muscat has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 107.0%.
- CAPEX is quite volatile: 16.0 in 2015, 0 in 2014, 8.7 in 2013, 7.5 in 2012, 9.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bank Muscat ($BKM) key annual financial indicators
| mln. OMR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 369.1 | 413.7 | 438.8 | 484.4 | 500.6 | 3.3% |
| Net Income | 117.6 | 139.2 | 152.2 | 163.2 | 175.5 | 7.5% |
Balance Sheet
|
|---|
| Cash | 825.9 | 663.4 | 582.3 | 836.9 | 2,412.1 | 188.2% |
| Short Term Debt | 831.9 | 804.4 | 715.9 | 888.8 | 3,050.7 | 243.2% |
| Long Term Debt | 60.6 | 54.8 | 76.2 | 240.5 | 335.1 | 39.4% |
Cash flow
|
|---|
| Capex | 9.0 | 7.5 | 8.7 | 0.0 | 16.0 | |
Ratios
|
|---|
| Revenue growth | 4.4% | 12.1% | 6.1% | 10.4% | 3.3% | |
| Net Income Margin | 31.9% | 33.7% | 34.7% | 33.7% | 35.1% | 1.4% |
| CAPEX, % of revenue | 2.4% | 1.8% | 2.0% | 0.0% | 3.2% | 3.2% |
| ROIC | 7.2% | 7.8% | 8.2% | 7.6% | 5.0% | -2.6% |
| ROE | 14.1% | 14.3% | 13.3% | 12.9% | 13.0% | 0.0% |
Revenue and profitability
Bank Muscat's Revenue increased on 3.3% in 2015.
Net Income marign increased slightly on 1.4 pp from 33.7% to 35.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Bank Muscat had CAPEX/Revenue of 3.2%. Bank Muscat showed small growth in CAPEX/Revenue of 1.4 pp from 1.8% in 2012 to 3.2% in 2015.
Return on investment
The company operates at good ROE (12.95%) while ROIC is low (5.01%). ROIC decreased on 2.6 pp from 7.6% to 5.0% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt surged on 200% in 2015 while cash surged on 188% in 2015.
Appendix 1: Peers in Banks
Below we provide Bank Muscat benchmarking against other companies in Banks industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | 7.1% | 9.1% | 11.7% | 23.9% | |
| Sberbank Of Russia ($SBER) | 6.7% | 37.2% | 25.1% | 23.4% | |
| |
|---|
| Median (42 companies) | 9.9% | 9.5% | 4.5% | 11.8% | 2.8% |
|---|
| Bank Muscat ($BKM) | | 12.1% | 6.1% | 10.4% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| Diamond Bank ($DBPA) | | 8.2% | 7.9% | 6.0% | 6.7% |
| |
|---|
| Median (39 companies) | 2.3% | 2.5% | 2.7% | 2.1% | 1.9% |
|---|
| Bank Muscat ($BKM) | 2.4% | 1.8% | 2.0% | 0.0% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (42 companies) | 6.9% | 5.7% | 5.2% | 4.4% | 1.5% |
|---|
| Bank Muscat ($BKM) | 7.2% | 7.8% | 8.2% | 7.6% | 5.0% |
