BankMuscat (S.A.O.G)

Management Reports • Jul 15, 2021

National Storage Mechanism | Additional information

RNS Number : 3488F

BankMuscat (S.A.O.G)

15 July 2021

Bank Muscat announces preliminary unaudited results for the six months ended 30 June 2021

MUSCAT, 15 July, 2021: Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary unaudited results for the six months ended 30 June 2021. The bank posted a net profit of RO 94.65 million for the period compared to RO 69.56 million reported during the same period in 2020, an increase of 36.1 per cent, mainly due to lower impairment charges.

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 168.44 million for the six months period ended 30 June 2021 compared to RO 160.53 million for the same period in 2020, an increase of 4.9 per cent.

2)   Non-interest income was RO 74.70 million for the six months period ended 30 June 2021 as compared to RO 64.69 million for the same period in 2020, an increase of 15.5 per cent. 

3)   Operating expenses for the six months period ended 30 June 2021 was RO 95.12 million as compared to RO 94.03 million for the same period in 2020, an increase of 1.2 per cent.  

4)   Net Impairment for credit and other losses for the six months period in 2021 was RO 35.33 million as against RO 48.19 million for the same period in 2020. The decrease is mainly attributed to the precautionary and collective provisions created by the bank during first half of 2020, due to the onset of the Covid-19 pandemic and the historic decline seen in global crude oil prices. The bank remains vigilant of the continuing stress in the macro-economic and business conditions and its potential impacts.

5)   Net Loans and advances including Islamic financing receivables increased by 2.7 per cent to RO 9,238 million as against RO 8,996 million as at 30 June 2020.

6)   Customer deposits including Islamic Customer deposits increased by 0.3 per cent to RO 8,670 million as against RO 8,645 million as at 30 June 2020.

Key highlights of preliminary unaudited results

Particulars (RO millions) For the period ended	30 Jun 2021	30 Jun 2020	Change (%)
Net interest income & Islamic financing income	168.44	160.53	4.9%
Other operating income	74.70	64.69	15.5%
Operating expenses	95.12	94.03	1.2%
Operating profit	148.02	131.19	12.8%
Net profit	94.65	69.56	36.1%
Particulars (RO millions) as at	30 Jun 2021	30 Jun 2020	Change (%)
Net loans and Islamic financing	9,238	8,996	2.7%
-     Conventional loans and advances	7,898	7,812	1.1%
-     Islamic financing receivables	1,340	1,184	13.2%
Customer deposits and Islamic deposits	8,670	8,645	0.3%
-     Conventional customer deposits	7,518	7,601	-1.1%
-     Islamic customer deposits	1,152	1,044	10.3%

The full results for the six months ended 30 June 2021 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 July 2021.

________________

Waleed K. Al Hashar

Chief Executive Officer

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