preliminary unaudited results for Q1 March 2020
Updated : 07:00
Bank Muscat announces preliminary unaudited results for the three months ended 31st March 2020
MUSCAT, 19 April, 2020: Bank Muscat, the flagship financial institution in the Sultanate, announced its preliminary unaudited results for the three months ended 31st March 2020. The bank posted a net profit of RO 33.25 million for the period compared to RO 45.80 million reported during the same period in 2019, a decrease of 27.4 per cent.
The key highlights of the results for the period are as follows:
1) Net Interest Income from Conventional Banking and Income from Islamic Financing stood at RO 81.23 million for the three months period ended 31 March 2020 compared to RO 78.76 million for the same period in 2019, an increase of 3.1 per cent.
2) Non-interest income was RO 34.39 million for the three months period ended 31 March 2020 as compared to RO 37.56 million for the same period in 2019, a decrease of 8.4 per cent.
3) Operating expenses for the three months period ended 31 March 2020 was RO 50.60 million as compared to RO 48.58 million for the same period in 2019, an increase of 4.2 per cent.
4) Net Impairment for credit and other losses for the three months period in 2020 was RO 25.73 million as against RO 13.46 million for the same period in 2019. The increase is mainly on account of precautionary and collective provisions being made 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.
5) Net Loans and advances including Islamic financing receivables decreased by 1.2 per cent to RO 9,046 million as against RO 9,158 million as at 31 March 2019. The reduction in the loan book is mainly attributable to prepayment of certain large corporate exposures in the last quarter of 2019.
6) Customer deposits including Islamic Customer deposits increased by 2.0 per cent to RO 8,199 million as against RO 8,042 million as at 31 March 2019.
Key highlights of preliminary unaudited results
Particulars (RO millions) For the period ended, | 31 Mar 2020 | 31 Mar 2019 | Change (%) |
Net interest income & Islamic financing income | 81.23 | 78.76 | 3.1% |
Other operating income | 34.39 | 37.56 | -8.4% |
Operating expenses | 50.60 | 48.58 | 4.2% |
Operating profit | 65.02 | 67.74 | -4.0% |
Net profit | 33.25 | 45.80 | -27.4% |
Particulars (RO millions) as at, | 31 Mar 2020 | 31 Mar 2019 | Change (%) |
Net loans and Islamic financing | 9,046 | 9,158 | -1.2% |
- Conventional loans and advances | 7,873 | 7,995 | -1.5% |
- Islamic financing receivables | 1,173 | 1,163 | 0.9% |
Customer deposits and Islamic deposits | 8,199 | 8,042 | 2.0% |
- Conventional customer deposits | 7,186 | 7,055 | 1.9% |
- Islamic customer deposits | 1,013 | 987 | 2.6% |
The full results for the three months ended 31 March 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 April 2020.
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Waleed K. Al Hashar
Chief Executive Officer
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