Bank Muscat revenue increased on 9.7% in 2016
15 Jan 2017 • About Bank Muscat (
$BKM) • By InTwits
Bank Muscat reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bank Muscat has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 107.0%.
- CAPEX is quite volatile: 10.5 in 2016, 16.0 in 2015, 0 in 2014, 8.7 in 2013, 7.5 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.0%
- It operates with high leverage: Net Debt/EBITDA is 0.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bank Muscat ($BKM) key annual financial indicators
| mln. OMR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 413.7 | 438.8 | 484.4 | 500.6 | 548.9 | 9.7% |
| Net Income | 139.2 | 152.2 | 163.2 | 175.5 | 176.6 | 0.6% |
Balance Sheet
|
|---|
| Cash | 663.4 | 582.3 | 836.9 | 2,412.1 | 1,041.6 | -56.8% |
| Short Term Debt | 804.4 | 715.9 | 888.8 | 3,050.7 | 1,215.4 | -60.2% |
| Long Term Debt | 54.8 | 76.2 | 240.5 | 335.1 | 229.8 | -31.4% |
Cash flow
|
|---|
| Capex | 7.5 | 8.7 | 0.0 | 16.0 | 10.5 | -34.5% |
Ratios
|
|---|
| Revenue growth | 12.1% | 6.1% | 10.4% | 3.3% | 9.7% | |
| Net Income Margin | 33.7% | 34.7% | 33.7% | 35.1% | 32.2% | -2.9% |
| CAPEX, % of revenue | 1.8% | 2.0% | 0.0% | 3.2% | 1.9% | -1.3% |
| ROIC | 7.8% | 8.2% | 7.6% | 5.0% | 5.0% | -0.1% |
| ROE | 14.3% | 13.3% | 12.9% | 13.0% | 12.0% | -1.0% |
Revenue and profitability
Bank Muscat's Revenue increased on 9.7% in 2016.
Net Income marign decreased on 2.9 pp from 35.1% to 32.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
Bank Muscat's CAPEX/Revenue was 1.9% in 2016. The company showed almost no change in CAPEX/Revenue from 2013 to 2016.
Return on investment
The company operates at low ROIC (4.95%) and ROE (12.00%). ROIC showed almost no change in 2016. ROE decreased slightly on 0.96 pp from 13.0% to 12.0% in 2016.
Leverage (Debt)
Debt dropped on 57.3% in 2016 while cash dropped on 56.8% in 2016.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kazkommertsbank JSC ($KKB) | | 6.0% | 16.3% | 41.4% | |
| Sberbank Of Russia ($SBER) | 37.2% | 25.1% | 23.4% | 27.4% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 37.6% | 23.7% | 18.9% | 26.8% | |
| Yapi Ve Kredi Bankasi As ($YKBD) | 14.9% | 4.8% | 19.7% | 25.3% | |
| Mcb Bank Ltd ($MCBS) | 3.0% | -1.7% | 19.4% | 22.4% | |
| |
|---|
| Median (43 companies) | 9.3% | 4.2% | 12.1% | 5.5% | 1.0% |
|---|
| Bank Muscat ($BKM) | | 6.1% | 10.4% | 3.3% | 9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Banque Marocaine Du Comm Exterieur ($69IR) | 3.7% | 9.7% | 4.3% | 26.8% | |
| Lloyds Banking Group ($LLPC) | 8.0% | 8.9% | 13.1% | 13.6% | 14.5% |
| Banco Santander Sa ($BNC) | 2.7% | 2.6% | 8.9% | 10.2% | |
| Guaranty Trust Bank ($GRTB) | 6.7% | 6.1% | 6.8% | 7.7% | |
| Diamond Bank ($DBPA) | 8.2% | 7.9% | 6.0% | 6.7% | |
| |
|---|
| Median (41 companies) | 2.4% | 2.8% | 2.2% | 2.5% | 1.9% |
|---|
| Bank Muscat ($BKM) | 1.8% | 2.0% | 0.0% | 3.2% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 21.7% | 26.9% | 30.1% | 30.3% | |
| Guaranty Trust Bank ($GRTB) | 19.8% | 18.9% | 17.8% | 16.0% | |
| Mcb Bank Ltd ($MCBS) | 15.0% | 14.4% | 15.8% | 14.9% | |
| United Bank Ltd ($UBLS) | 11.7% | 11.8% | 13.8% | 12.6% | |
| Zenith Bank ($ZENB) | 19.0% | 17.6% | 15.0% | 11.2% | |
| |
|---|
| Median (43 companies) | 6.0% | 5.3% | 4.4% | 3.4% | 3.5% |
|---|
| Bank Muscat ($BKM) | 7.8% | 8.2% | 7.6% | 5.0% | 5.0% |
