Bank Muscat posts 2020 net profit of RO 163.36 million

Bank Muscat has posted a net profit of RO 163.36 million for the year compared to RO 185.55 million reported during the same period in 2019, a decrease of 12.0 per cent.

Announcing its unaudited results for the year, the Sultanate’s biggest lender noted that Net Interest Income from Conventional Banking and Net Income from Islamic Financing stood at RO 322.13 million for the year compared to RO 316.97 million for the same period in 2019, an increase of 1.6 per cent.

Non-interest income was RO 134.41 million as compared to RO 155.20 million for the same period in 2019, a decrease of 13.4 per cent mainly due to subdued business conditions due to COVID-19 related lockdowns in Q2, Q3 and Q4 2020 and waiver of certain fees due to regulatory measures. Operating expenses for the year were RO 179.85 million as compared to RO 195.93 million for the same period in 2019, a decrease of 8.2 per cent due to cost management measures taken by the bank.

Net Impairment for credit and other losses for the year 2020 was RO 81.04 million as against RO 56.13 million for the same period in 2019.

“The increase was mainly on account of precautionary and collective provisions made in the first half of 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,” the bank stated.

Net Loans and advances including Islamic financing receivables increased marginally by 0.5 per cent to RO 8,918 million, as against RO 8,878 million for 2019.

Customer deposits including Islamic Customer deposits increased by 4.2 per cent to RO 8,377 million as against RO 8,043 million in 2019.

The full results for the year ended December 31, 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 January 2021, it added.