bank muscat announces unaudited preliminary results for the year ended 31st December 2019
YTD Net Profit at RO 185.55 million
MUSCAT, 15 January, 2020: bank muscat, the flagship financial institution in the Sultanate, announced its preliminary results for the year ended 31st December 2019. The financial results are subject to approval of External Auditors, Board of Directors, Central Bank of Oman and Shareholders of the Bank.
The bank posted a net profit of RO 185.55 million for the year compared to RO 179.63 million reported during the same period in 2018, an increase of 3.3 per cent.
The key highlights of the results for the year are as follows:
1) Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 316.97 million for the year ended 31 December 2019 compared to RO 304.29 million for the same period in 2018, an increase of 4.2 per cent.
2) Non-interest income was RO 155.21 million for the year ended 31 December 2019 as compared to RO 142.45 million for the same period in 2018, an increase of 9.0 per cent.
3) Operating expenses for year ended 31 December 2019 was RO 195.95 million as compared to RO 190.34 million for the same period in 2018, an increase of 2.9 per cent.
4) Net Impairment for credit and other losses for the year 2019 was RO 56.13 million as against RO 43.24 million for the year 2018.
5) Net Loans and advances including Islamic financing receivables decreased by 0.7 per cent to RO 8,879 million as against RO 8,939 million as at 31 December 2018. The reduction in loan book is mainly attributable to prepayment of certain large corporate exposures in 2019.
6) Customer deposits including Islamic Customer deposits decreased by 5.0 per cent to RO 8,044 million as against RO 8,463 million as at 31 December 2018. The main reason for decrease in customer deposits in 2019 was due to a substantial increase in large short term deposit that was transit in nature in last quarter of 2018.
Key highlights of unaudited preliminary results
| Particulars (RO millions) For the year ended, | 31 Dec 2019 | 31 Dec 2018 | Change (%) |
| Net interest income & Islamic financing income | 316.97 | 304.29 | 4.2% |
| Other operating income | 155.21 | 142.45 | 9.0% |
| Operating expenses | 195.95 | 190.34 | 2.9% |
| Operating profit | 276.23 | 256.40 | 7.7% |
| Net profit | 185.55 | 179.63 | 3.3% |
| Particulars (RO millions) as at, | 31 Dec 2019 | 31 Dec 2018 | Change (%) |
| Net loans and Islamic financing | 8,879 | 8,939 | -0.7% |
| - Conventional loans and advances | 7,713 | 7,829 | -1.5% |
| - Islamic financing receivables | 1,166 | 1,110 | 5.0% |
| Customer deposits and Islamic deposits | 8,044 | 8,463 | -5.0% |
| - Conventional customer deposits | 7,011 | 7,504 | -6.6% |
| - Islamic customer deposits | 1,033 | 959 | 7.7% |
The full results for the year ended 31st December 2019 along with complete set of unaudited financial statements will be released post approval of the Board of directors of the Bank at its meeting scheduled later during January 2020.
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Waleed K. Al Hashar
Chief Executive Officer