OR19.25 million as per announcement on BSE. Roughly US$50 million.
Not a major issue. At 30 September 2009 the bank had OR709 million in shareholders funds. It earned OR 20 million in 3Q09.
A bit of background on exposure of Bank Muscat and its Bahrain affiliate, Bank Muscat International, to Saad/AlGosaibi. If you look at Note #5 page 9 in the 3Q09 financials provided via the link above, you'll see a major increase in loans on which interest is being reserved from OR72.4 million to OR196.6 million. But this is only 5% or so of total loans. And the loan loss reserve ("LLR") covers 81% of this amount so the net uncovered amount is a mere 4% of equity.
The Central Bank of Oman runs a rather tight ship - which is one of the reasons why Bank Muscat International in Bahrain was set up. Expect additional provisions at Bank Muscat in 4Q09 to top up the LLR.
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