Muscat Daily

Bank Mus­cat's net profit drops 20% to RO113mn

- Business · Finance · Bank Muscat SAOG · Muscat

Bank Mus­cat re­ported a net profit of RO113.21mn for the first nine months of 2020 com­pared to RO141.43mn net profit re­ported for the same pe­riod of last year, record­ing an year-on-year de­crease of 20 per cent.

The bank on Thurs­day an­nounced its pre­lim­i­nary unau­dited re­sults for the nine months ended Septem­ber 30, 2020. Bank Mus­cat's net in­ter­est in­come from con­ven­tional bank­ing and net in­come from Is­lamic fi­nanc­ing slightly in­creased 0.9 per cent to RO240.07mn in the first nine months of this year com­pared to RO237.97mn for the same pe­riod in 2019.

The bank's non-in­ter­est in­come came at RO96.72mn for the nine months pe­riod this year as com­pared to RO113.76mn for the same pe­riod in 2019, a de­crease of 15 per cent. The de­crease in non-in­ter­est in­come was mainly be­cause of the sub­dued busi­ness con­di­tions due to the COVID-19 re­lated lock­downs in the sec­ond and third quar­ters and the waiver of cer­tain fees due to reg­u­la­tory mea­sures, Bank Mus­cat said in a press state­ment.

The bank's op­er­at­ing ex­penses for the nine months pe­riod ended Septem­ber 30, 2020 were at RO137.19mn as com­pared to RO144.54mn for the same pe­riod in 2019, a de­crease of 5.1 per cent.

Net im­pair­ment for credit and other losses for the nine months pe­riod in 2020 rose to RO64.82mn from RO38.14mn for the same pe­riod of 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,' Bank Mus­cat said.

Bank Mus­cat's net loans and ad­vances (in­clud­ing Is­lamic fi­nanc­ing re­ceiv­ables) decreased by 1.3 per cent to RO8.846bn as of Septem­ber 30, 2020 from RO8.965bn a year ago. The re­duc­tion in the loan book is mainly at­trib­ut­able to pre­pay­ment of cer­tain large cor­po­rate ex­po­sures in the last quar­ter of 2019, the bank said.

To­tal cus­tomer de­posits (in­clud­ing Is­lamic cus­tomer de­posits) this year in­creased by 6.7 per cent to RO8.714bn as against RO8.164bn as at Septem­ber 30, 2019.

 ??  ?? The bank's net loans and ad­vances (in­clud­ing Is­lamic fi­nanc­ing re­ceiv­ables) decreased by 1.3 per cent to RO8.846bn as of Septem­ber 30, 2020 com­pared to RO8.965bn a year ago.
The bank's net loans and ad­vances (in­clud­ing Is­lamic fi­nanc­ing re­ceiv­ables) decreased by 1.3 per cent to RO8.846bn as of Septem­ber 30, 2020 com­pared to RO8.965bn a year ago.
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