Bank Muscat appoints deputy chairman, approves financial results for first quarter of 2020

Muscat: The Board of Directors of Bank Muscat has approved the appointment of Sheikh Ahmed bin Hamed bin Hilal Al Saadi as Deputy Chairman.
The board also approved the unaudited results of the bank for the three months ended March 31, 2020, at its meeting chaired by Sheikh Khalid bin Mustahail Al Mashani, chairman, on Tuesday, April 28, 2020.
The bank posted a net profit of OMR33.25 million for the period compared to OMR45.80 million reported during the same period in 2019, a decrease of 27.4 per cent. Net Interest Income from Conventional Banking and Income from Islamic Financing stood at OMR81.23 million for the three months ended March 31, 2020, compared to OMR78.76 million for the same period in 2019, an increase of 3.1 per cent.
Non-interest income was OMR34.39 million for the three months ended 31 March 2020 as compared to OMR37.56 million for the same period in 2019, a decrease of 8.4 per cent. The reduction was mainly due to investment losses on account of the decrease in fair value of investment securities (FVPL portfolio) based on the recent fall in stock markets globally.
Operating expenses for the three months ended March 31, 2020, was OMR50.60 million as compared to OMR48.58 million for the same period in 2019, an increase of 4.2 per cent. Net Impairment for credit and other losses for the three months in 2020 was OMR25.73 million as against OMR13.46 million for the same period in 2019. The increase is mainly on account of precautionary and collective provisions being made on a forward-looking basis given the emerging stress in the economic and business conditions as a result of the impact of COVID-19 and the continued pressure on oil prices.
Net Loans and advances including Islamic financing receivables decreased by 1.2 per cent to OMR9,046 million as against OMR9,158 million as of March 31, 2019. The reduction in the loan book is mainly attributable to the prepayment of certain large corporate exposures in the last quarter of 2019.
Customer deposits including Islamic Customer deposits increased by 2 per cent to OMR8,199 million as against OMR8,042 million as of March 31, 2019.