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Bank Muscat posts net profit of OMR113.21mn

Business Thursday 15/October/2020 15:11 PM
By: Times News Service
Bank Muscat posts net profit of OMR113.21mn

Muscat: Bank Muscat, the leading financial institution in the Sultanate, announced its preliminary unaudited results for the nine months ended on September 30, 2020. The bank posted a net profit of OMR113.21 million for the period compared to OMR141.43 million reported during the same period in 2019, a decrease of 20 per cent. 

Key highlights

The bank's Net Interest Income from conventional banking and net income from Islamic financing stood at OMR240.07 million for the nine-months period compared to OMR237.97 million for the same period in 2019, an increase of 0.9 per cent.

Non-interest income was OMR96.72 million as compared to OMR113.76 million for the same period in 2019, a decrease of 15 per cent mainly due to subdued business conditions due to COVID-19 related lockdowns in second and third quarters of 2020 and the waiver of certain fees due to regulatory measures.

The bank's operating expenses for was OMR137.19 million as compared to OMR144.54 million for the same period in 2019, a decrease of 5.1 per cent.

Net Impairment of the bank for credit and other losses was OMR64.82 million as against OMR38.14 million for the same period in 2019. The increase was mainly on account of precautionary and collective provisions made in the first half 2020, 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 of the bank including Islamic financing receivables decreased by 1.3 per cent to OMR8,846 million as against OMR8,965 million at the end of September 30, 2019. The reduction in the loan book is mainly attributable to prepayment of certain large corporate exposures in the last quarter of 2019.

The bank's customer deposits including Islamic customer deposits increased by 6.7 per cent to OMR8,714 million as against OMR8,164 million in September 2019 quarter.

The full results for the nine-months ended on September 30, 2020 along with the complete set of unaudited financial statements will be released following the approval of the Board of Directors of the Bank at its meeting scheduled later during October2020.