Unaudited results for nine months ended 30Sep 2020

Bank Muscat announces preliminary unaudited results for the nine months ended 30^th September 2020

MUSCAT, 15 October, 2020: Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary unaudited results for the nine months ended 30th September 2020. The bank posted a net profit of RO 113.21 million for the period compared to RO 141.43 million reported during the same period in 2019, a decrease of 20.0 per cent.

The key highlights of the results for the period are as follows:

1)   Net Interest Income from Conventional Banking and Net Income from Islamic Financing stood at RO 240.07 million for the nine months period ended 30 September 2020 compared to RO 237.97 million for the same period in 2019, an increase of 0.9 per cent.

2)   Non-interest income was RO 96.72 million for the nine months period ended 30 September 2020 as compared to RO 113.76 million for the same period in 2019, a decrease of 15.0 per cent mainly due to subdued business conditions due to COVID-19 related lockdowns in Q2 & Q3 2020 and waiver of certain fees due to regulatory measures. 

3)   Operating expenses for the nine months period ended 30 September 2020 was RO 137.19 million as compared to RO 144.54 million for the same period in 2019, a decrease of 5.1 per cent.  

4)   Net Impairment for credit and other losses for the nine months period in 2020 was RO 64.82 million as against RO 38.14 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.

5)   Net Loans and advances including Islamic financing receivables decreased by 1.3 per cent to RO 8,846 million as against RO 8,965 million as at 30 September 2019. The reduction in the loan book is mainly attributable to prepayment of certain large corporate exposures in the last quarter of 2019.

6)   Customer deposits including Islamic Customer deposits increased by 6.7 per cent to RO 8,714 million as against RO 8,164 million as at 30 September 2019.

Key highlights of preliminary unaudited results

The full results for the nine months ended 30 September 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 October 2020.

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Waleed K. Al Hashar

Chief Executive Officer