MUSCAT: Bank Muscat, the leading financial services institution in the Sultanate, announced its preliminary unaudited results for the year ended 31st December 2020. The financial results are subject to approval of External Auditors, Board of Directors, Central Bank of Oman and the shareholders of the Bank. The Bank posted a net profit of OMR 163.36 million for the year compared to OMR 185.55 million reported during the same period in 2019, a decrease of 12.0 per cent.
The key highlights of the results for the year are as follows:
- Net Interest Income from Conventional Banking and Net Income from Islamic Financing stood at OMR 322.13 million for the year ended 31 December 2020 compared to OMR 316.97 million for the same period in 2019, an increase of 1.6 per cent.
- Non-interest income was OMR 134.41 million for the year ended 31 December 2020 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 ended 31 December 2020 was RO 179.85 million as compared to OMR 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 OMR 81.04 million as against OMR 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.
- Net Loans and advances including Islamic financing receivables increased marginally by 0.5 per cent to OMR 8,918 million as against RO 8,878 million as at 31 December 2019.
- Customer deposits including Islamic Customer deposits increased by 4.2 per cent to OMR8,377 million as against OMR 8,043 million as at 31 December 2019.
Key highlights of preliminary unaudited results
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| Particulars (RO millions)For the year ended | 31 Dec2020 | 31 Dec2019 | Change (%) |
| Net interest income & Islamic financing income | 322.13 | 316.97 | 1.6 |
| Other operating income | 134.41 | 155.20 | -13.4 |
| Operating expenses | 179.85 | 195.93 | -8.2 |
| Operating profit | 276.69 | 276.24 | 0.2 |
| Net profit | 163.36 | 185.55 | -12.0 |
| Particulars (RO millions) as at | 31 Dec2020 | 31 Dec2019 | Change (%) |
| Net loans and Islamic financing | 8,918 | 8,878 | 0.5 |
| Conventional loans and advances | 7,688 | 7,712 | -0.3 |
| Islamic financing receivables | 1,230 | 1,166 | 5.5 |
| Customer deposits and Islamic deposits | 8,377 | 8,043 | 4.2 |
| Conventional customer deposits | 7,364 | 7,011 | 5.0 |
| Islamic customer deposits | 1,013 | 1,032 | -1.8 |
The full results for the year ended 31 December 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.
